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Darren Ellis

AERO 2058 – Airline Operations Management

Teaching Period 5, 2018

Assessment 1
The airline’s
logo is optional

A New Route for Air Berlin: Berlin (TXL)


to Mexico City (MEX)

Due Date: Monday 27th August

Insert your
own word Word Count: 1,500 words
count here

Course Value: 30%


AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

A header (or footer if you


Key Abbreviations prefer), with some key
details, is always good

AEA Association of European Airlines


ASA Air Service Agreement
ASEAN Association of Southeast Asian Nations
CAPA Centre for Asia Pacific Aviation
ETS Emissions Trading Scheme
EC European Commission
EU European Union
FSC Full Service Carrier
IATA International Air Transport Association
ICAO International Civil Aviation Organisation
LCC Low Cost Carrier
PESTE Political, Economic, Social, Technological & Environmental
SAM Single Air Market
SWOT Strengths Weaknesses Opportunities & Threats
UAE United Arab Emirates
UN United Nations
US United States
WTO World Trade Organisation

Notes:
 Aim for about 8 to 12 key abbreviations here
 Only use abbreviations that are in your report
 Use a table with no borders (only show gridlines)
 Don’t be concerned about having white space on this page (it’s
unavoidable); still, make sure these abbreviations are on a separate page

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Don’t forget to put


the page number
based on the final
List of Figures version

Figure 1 Summary Statistics for TXL to MEX Route 3

Figure 2 [Insert Title]

[Figures can include tables, images, graphs, etc.]

Don’t put any Figures


here, just the written
details…
Notes:
 Use a table with no borders (just gridlines to help you populate it)
 Only use figures and tables that are actually in your report (not
appendices which are at the end; Appendix 1, etc.)
 This can be auto-generated, but I would suggest manually creating it

Page Numbering:
 Select ‘Different First Page’ to
ensure no page numbering is on the
title page
 Select ‘Start at: 0’ to ensure that
the first page after the title page
starts with Page 1
 The exact format you choose is up
to you (e.g. Page 1; 1; -1-;)

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Executive Summary

The executive summary should be about three quarters (i.e. approx. 75%) of one page – up to
a full page long maximum. As with the rest of the report please use the following style and
format:
 1.5 line spacing
 Times New Roman 12 point font (I’m flexible here, but this is what I prefer – certainly
no marks deducted for selecting your preferred text)
 Write paragraphs that are about half a page long; therefore, about two paragraphs in the
Executive Summary here
 Justified alignment (although no marks deducted if you prefer left align)

 Numbers written in-text as; one to nine or ten, 10 or 11+. In the case of percentages,
numerals is best though; for example: 80%. It is typically recommended to only use the
percent symbol when in brackets (e.g. 80%) and written in full in-text; 80 percent (or
per cent)
 Please do not use italics for direct quotes (unless in the original text), but please do use
double “quotation marks”
 Use only bold, italics or underline one at a time; please do not mix styles together (e.g.
no mixing, please)
 Avoid abbreviations in-text; for instance: e.g.; don’t; won’t; etc. This sounds too casual,
as do expressions like ‘there are many ways to skin a cat’. Keep it professional.
Some specific executive summary points:
 It is not a conclusion
 It is not included in your word count (repeat: It is NOT included in your word count)
 An executive summary is a paragraph that provides the reader with a quick overview
of the entire report, including its purpose, context, methods (e.g. SWOT analysis),
major findings, conclusions and recommendations (only relevant for AERO 2059).
 No recommendations for the AERO 2058 report because the report is the
recommendation
 Write the executive summary last, after your conclusion.

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Please DO NOT
Table of Contents (or just Contents) list the Table of
Contents here

Key Abbreviations 1
List of Figures & Tables 2
Executive Summary 3

1.1 Introduction 5

1.2 Background to Air Berlin 8

1.3 The rationale for TXL to MEX 8

1.4 Aircraft Selection: The Airbus A330-300 9

1.5 Additional Employees, Facilities & Resources Required 9


1.5.1 New Employee Numbers 9
1.5.2 Facilities and Resources Required 10

1.6 Latin Links to Germany: Route Demand Dynamics 10


[Two sub-headings would likely be listed here as well]
1.7 Conclusion 10
Please note: Some of the above headings and
sub-headings reflect requirements for the
List of References 2017 version of the course, so please ensure 11
that you follow the 2018 parameters.

Appendix:
1. SWOT Analysis Framework 13
2. An Air Berlin A330-300 13
3. Air Berlin’s Route Network Map – 2017 14

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Table of Contents notes:


 The simplest way to create a Table of Contents is to use a table (without
borders, but with gridlines) and to manually populate it
 Having said that, if you set-up your headings (as explained on the next
page), you can auto-generate and update a Table of Contents at any time
 Please make this neat and tidy, with appropriate spacing and formatting to
ensure a professional look and style
 Remember, together with the Executive Summary, the Table of Contents
is likely to be the only thing that a top level manager actually reads in your
report (I’ll be reading all of it of course).

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

1.1 Introduction
I would suggest that you manually create numbered headings throughout your report; however,
you can also use Word’s heading function to then allow for the auto-generation (and updating)
of a table of contents, along with other pages as well (e.g. Figures & Tables).

For example, ‘Heading 1’ could be modified above to be Times New Roman 12 point and bold
for the main report headings. ‘Heading 2’ could be Times New Roman 12 point and italics for
the report sub-headings. Meanwhile, ‘Heading 3’ could be Times New Roman 14 point
and italics for the key abbreviations, along with the figures and tables headings. This way each
time you insert a new heading or title, you simply select the appropriate heading. Now, you
can generate a table of contents. ‘Normal’ would then be your main body text (i.e. Times New
Roman 12 point and justify). The trick is to still manually number the headings after selecting
the relevant style; for instance:

STEP 1: Modify a Heading option to your requirements

STEP 2: Select that heading option for each heading of that type, and type the heading name;
for example: Introduction

STEP 3: Manually write the heading number before the written heading and press the ‘Tab’
key on your computer keyboard to create a space; for example: 1.1 [Tab]

STEP 4: Press the ‘Enter’ key on your keyboard after the heading, and if appropriately set-up,
the cursor should now go to the next line, and ‘Normal’ text should occur.

Final Point: The numbering can be changed at any time to reflect changes in the document.

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Specific points on the introduction:

 One to two paragraphs long (although for this relatively short report, one is preferable)
 Avoid too much airline background here, save most of it for the next section
 Outline the key topic areas to be covered (i.e. a chronological word map)
 It is fine to start with: ‘This report will…’. Also: ‘A number of key considerations need
to be addressed to launch and successfully operate this new route, including…’
 Give a sense of why this report is important; for example (assuming Air Berlin was not
essentially bankrupt at present): ‘Direct air links between Germany and Mexico are
dominated by German national carrier Lufthansa out of its Frankfurt hub, making links
to Mexico City well positioned for competition. From all accounts, demand on this
Frankfurt route is very strong, and a direct new service between the German capital
Berlin, and the Mexican capital Mexico City, would likely be quickly successful…’
 No in-text referencing is required in the introduction
 Give the reader/maker a clear sense of what the report will cover – but please do not
provide detailed conclusions, beyond a brief rationale for its likely value (as above) –
save the conclusions for the conclusion at the end
 One simple technique is to do a final read through of your introduction while looking
at the Table of Contents, and asking yourself; “have I mentioned each key heading?” If
you do this, just be careful not to sound too mechanical in the introduction; for example:
‘This report will has an introduction, a main body looking at A, B, C and D, and a
conclusion’. This style of introduction is too boring and overly generic

Finally, please do not leave any white space (i.e. a gap) between the introduction and other
parts of your report, including the conclusion at the end. Such a style breaks up the flow and
readability of the report too much.

White Space…

1.2 Background…

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

1.2 Background to Air Berlin


It is always a good idea to provide a background to your airline. Never assume that your reader
knows a lot about the airline, even if they are the CEO (they night be relatively new). This first
section after the introduction can be one to two paragraphs; although in a relatively short report
like this, one paragraph is sufficient. Please reference this paragraph – at least to the airline’s
website, and hopefully to a journal article/s and/or book/s.

Also, make sure the background provides relevant data that helps to inform your report; for
instance: ‘Berlin’s Tegel Airport (TXL) is a major hub for Air Berlin and…’

One more thing here; you do want to bring your strategic framework/model in as soon as
practical in the report, so a standalone final sentence here linking to the rest of the report would
be good; for example:
‘The report now details the key considerations in starting this new route for Air Berlin and does
so by employing a Strengths, Weaknesses, Opportunities and Threat (SWOT) analysis as the
guiding framework of analysis. Appendix 1 provides further details on SWOT and its key links
to Air Berlin’. (Remember: You don’t have to use a framework if you prefer not too).

1.3 The rationale for TXL to MEX


I am flexible about exactly what key areas you decide to cover, so please simply view each of
these provided as suggestions and ideas. The major decisions to make about each section are:
 Write a topic sentence to clearly introduce each paragraph
 Try to stick with one key topic area/factor for each paragraph
 Work out beforehand during your research and brainstorming how you will structure
your report, and how many paragraphs for each section (assuming about 150 to 200
words per paragraph, making about 8 to 10 paragraphs in total, including the
introduction and conclusion for a 1,500 word report)
 Assuming one paragraph each for the introduction and conclusion, leaving eight
paragraphs for the main body, this would equal:
o One paragraph for the background section
o Two paragraphs detailing the rationale for the new route and likely risks
o One for aircraft type (and number) selected

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

o Two paragraphs for other costs (e.g. employees, ground handling, etc.) [2017
version]
o Two paragraphs covering likely demand
1.4 Aircraft Selection: The Airbus A330-300

The idea here is to give a sense that you have made a realistic and defensible aircraft type
choice. To do so you might want to consider:

 Providing a summary table in-text of key flight data; for example: Flight distance,
scheduled duration, seating layout, and so forth (refer to this table and provide
surrounding context to support it
 Keep this to one paragraph otherwise you are using up valuable world count

The SW  If this get too long and detailed, considered what material might be better placed as an
(internal) appendix at the end (and only referred to here)
factors of
SWOT  Does the airline already operate this aircraft type? If not, what are the core implications?
 How many aircraft will realistically be required to offer the frequency you are planning?
 What are the pros and cons of this aircraft type versus its nearest competitor? (E.g. 787
versus A350)
 Would this aircraft be leased, purchased brand new or purchased second-hand? Why?
 Be careful not to interrupt the readability and flow here by including massive tables and
large photographs of the aircraft – some is fine, but in moderation please (otherwise,
the an appendix is the place to put these)

1.5 Additional Employees, Facilities & Resources Required [2017 version]

1.5.1 New Employee Numbers

This might be a good location to use two sub-headings; one for employees and one for
additional facilities and resources (if these are the sub-topics you would like to cover). You
will likely need to make some educated guesses here, but to help please consider the following:

 Adding a daily long-haul flight (about 10 to 14 hours in duration) for a wide-body


aircraft like the 777, A330 or A350 would require in total about 250 new airline staff
(and at least two new aircraft for a daily frequency at these ranges)
The SW
 An A380 or 747-8 would require about 300 new staff
(internal)
 A 787 (or 757) would require about 200 new staff factors of
 A 737 or A320 (including A318, A319 & A321) about 150 new staff SWOT

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

 A Dash 8, 717, ATR72 and Embraer 190 about 120 new staff
(These are all estimates and do vary, but let’s assume these basic parameters)

1.5.2 Facilities and Resources Required

Again, I am flexible here – the idea is to show that you have considered the likely key costs of
operating a new route (especially at the destination end where facilities and resources might be
limited compared with your airline’s origin hub).

1.6 Latin Links to Germany: Route Demand Dynamics

Here you need to consider, in about two paragraphs, a range of possible issues and factors,
including:

 Directional, seasonal and key categories of demand (i.e. business, leisure, etc.).
 Read and research both the home base country and city, and the destination city and
country to make informed arguments for your discussion and analysis here
 Tourism, business links (which main sectors/industries?), and cultural links, trade
relationship, and more, all play a role here. You can also argue for stimulating demand
via certain possibilities likely to be generated (major festivals, etc.)

The OT  You could also look at some marketing ideas for the launch and immediate period of
(external) initial operation; maybe a marketing motto or slogan to get things started?
factors of
SWOT  Here is also a good location to incorporate the Opportunities and Threats (OT) from
SWOT – that is, the external analysis (SW is better for the costs section above because
of the internal airline nature of these main costs)
 You might decide to have 1.6.1 Berlin to Mexico City; and, 1.6.2 Mexico City to Berlin;
or 1.6.1 Origin & Destination Benefits; and, 1.6.2 Network Benefits; it is up to you

1.7 Conclusion

‘This new route for Air Berlin from Berlin (TXL) to Mexico City (MXL) is likely to be a
successful addition to the airline’s international route network’…

 No referencing required here


 No new information or data to be raised here
 Summarise key arguments and ideas raised throughout

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

 Please void a list type format or style whereby a conclusion (and an introduction)
simply becomes ‘this report looked at X, Y and Z’.
 One paragraph is sufficient here for a report of this length (i.e. 150 to 200 words)

List of References (or References or Reference List)

Please remember and consider the following:

 APA referencing system


 Please do not number or use dot points here
 Place each reference in alphabetical order from A to Z
 If you use a source that has the same author and year (e.g. CAPA, 2017) please
remember to differentiate between each with an a, b, c, etc. (e.g. CAPA, 2017a) (CAPA,
2017b)…
 If you do not know the year, such as a website, assume this year (i.e. 2017), or if you
are pretty sure you know the year, but are not 100 percent sure, you can put circa
meaning “near” in Latin (e.g. Ellis, c2015)
 Remember to please activate hyperlinks for APA, and check closely the requirements
if using Chicago or Harvard
 If you use EndNote (see: https://media.unisa.edu.au/Play/6519) you can download
citations (mostly journal articles) directly to the software, and then insert into your
assignment as you go – this means you will never have a reference list that contains
references not used in the assignment (Word has a referencing function built-in as well)
 Links to some relevant guides are available on the course site on learnonline, and at:
o APA: http://www.swinburne.edu.au/library/referencing/apa-style-guide/
o Other referencing guides and resources:
https://www.adelaide.edu.au/writingcentre/resources/referencing/

Example APA references for aviation: Start the list of


references on a separate
List of References page after the conclusion

Dobruszkes, F., & Graham, A. (2016). Air transport liberalisation and airline network
A dynamics: Investigating the complex relationships. Journal of Transport Geography,
50, 1-3. doi: http://dx.doi.org/10.1016/j.jtrangeo.2015.08.004

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Havel, B. F. (2009). Beyond Open Skies: A New Regime for International Aviation. The
Netherlands: Kluwer Law International.

Havel, B. F., & Sanchez, G. S. (2011a). Do We Need a New Chicago Convention? Issues in
Aviation Law and Policy, 11(1), 7-22. Retrieved from https://papers.ssrn.com

Havel, B. F., & Sanchez, G. S. (2011b). The Emerging Lex Aviatica. Georgetown Journal of
International Law, 42(3), 639-672. Retrieved from https://papers.ssrn.com

Havel, B. F., & Sanchez, G. S. (2011c). Restoring Global Aviation's "Cosmopolitan


Mentalite". Boston University International Law Journal, 29(1), 1-40. Retrieved from
https://papers.ssrn.com

Havel, B. F., & Sanchez, G. S. (2012). Toward an International Aviation Emissions


Agreement. Harvard Environmental Law Review, 36(2), 351-386. Retrieved from
https://papers.ssrn.com

Havel, B. F., & Sanchez, G. S. (2014). The Principles and Practice of International Aviation
Law. New York: Cambridge University Press.

Heracleous, L., Wirtz, J., & Pangarkar, N. (2009). Flying High in a Competitive Industry:
Secrets of the World's Leading Airline. Singapore: McGraw-Hill.

Maier, M. (2005). Rise of the Emirates Empire. Business 2.0. Retrieved from
http://money.cnn.com/magazines/business2/business2_archive/2005/10/01/8359251/
index.htm

Nancarrow, D. (2013). Etihad's James Hogan defines new airline business model. Aviation
Business. Retrieved from http://www.aviationbusiness.com.au/news/etihad-s-james-
hogan-defines-new-airline-business-model

O’Connell, J. F. (2011). The rise of the Arabian Gulf carriers: An insight into the business
model of Emirates Airline. Journal of Air Transport Management, 17(6), 339-346.
doi: http://dx.doi.org/10.1016/j.jairtraman.2011.02.003

Vasigh, B., Fleming, K., & Tacker, T. (2013). Introduction to Transport Economics: From
Theory to Applications (Second ed.). Farnham: Ashgate Publishing Limited.

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Please label and number


Appendix 1 each appendix, and have
a title for each as well
SWOT Analysis Framework

(Source: Schaadt, 2015)*

* Please note: These references should also be reflected in your list of references above. Also
with the example here you could supplement this graphic with a table conducting a summary
SWOT analysis of your airline’s new route (maybe in a table format). This could then result in
two appendices (i.e. Appendix 1 and Appendix 2) or just the one here – your choice.

Please add some summary details under the graphic or in the table that directly link to your
airline and/or report. Don’t just dump a generic graphic or table here.

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Appendix 2 (you do not need separate pages if space is available to fit two or more
appendices on a single page).

Air Berlin A330-300

(Source: ch-aviation, 2017)*


Make sure each appendix is
referenced to its source (if
applicable), and place this
into the list of references too

Provide some details here to accompany the picture (1 to 3 sentences or so)…

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AERO 2058 – Assessment 1: Air Berlin TXL-MEX Darren Ellis 2018

Appendix 3
Air Berlin’s Route Network Map – 2017

(Air Berlin, 2017)*

Air Berlin’s website (https://www.airberlin.com/en/site/landingpages/map.php) provides an


interactive map of the airline’s route network, including major code share and alliance partner
flights….

 If necessary, provide some additional context and information so that an appendix is


as clear as possible. For example, Air Berlin’s website unfortunately uses an interactive
map, therefore, so explanation is required to guide the reader/marker
 An appendix should never be a place to ‘dump and forget’ – all appendices should
serve a valuable purpose by providing important additional information for a report

FINALLY – Please do not fill your report with dot point and list (as I have done in this
document); use dot points and list VERY sparingly throughout!!

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