Case Type: Pricing
Case Style: Candidate Led
Industry: Airline Industry
Case Type: Pricing
Industry: Airline Industry
Case by Accenture: Strategy
The airline industry offers transportation services via flights for passengers and freight. The services range from a singular aircraft utilized to deliver cargo or mail, to full service airline that operate internationally with many different aircrafts.
The major expenses that affect companies in the airline industry are labor and fuel costs. Labor costs are largely fixed in the short-term, while fuel costs can swing wildly based on the oil price in international markets.
Our Client Sigma Technologies, an airline parts manufacturer has got success in making a device that claims to increase fuel efficiency of an airplane by 1%. They have hired us to analyze if there is a market for this kind of product. If so, help them in choosing the right pricing strategy for marketing this product.
Additional information (To be provided only on request)
Labor, IT services and networks, aviation insurance, engines, spare parts, fuel, handling services, training, sales distribution, catering and equipment are some examples of the operating cost heads for an airline
Two-thirds of the costs of flying an airplane are fixed, so changes in fuel costs can swing a flight from profit to loss depending on how many people are on the flight.
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Candidate is expected to solve this case by answering following questionnaires, led by the interviewer or the case partner. It is a candidate led case and below questions are given only to provide a direction to the candidate’s analysis wherever necessary. A good candidate is expected to crack this case end to end on his own using appropriate assumptions.