Assignment Details
Question 1:
Carbon Emissions is a major issue of concern for the airline industry, and indeed, during the pandemic, when airlines were shut down, aviation’s carbon dioxide fell by 48% during 2020. Now, governments and industry have taken steps to preserve this progress, and a goal has been set to achieve net-zero emissions by 2050. The key is the use of Sustainable Aviation Fuel (SAF).
Identify and discuss some of the initiatives being taken by the EU, the USA, ICAO, IATA, and the airlines to achieve this goal. Is support from governments and private investors adequate?
Do you think the 2050 goal is achievable? Why or why not. Explain your reasoning.
Question 2:
The soon-to-be-launched Riyadh Air has recently received considerable attention with its recent order of 39 Boeing 787-9s and -10s (plus 33 options), with a large narrowbody order expected imminently. On 14 June 2023, the airline was granted its Passenger Air Transport Economic License by the General Authority of Civil Aviation (GACA), the regulator, which is necessary for the airline to begin commercial operations. The airline has boasted some ambitions plans, in line with Saudi Arabia’s Vision 2030 policy to diversify away from its hydrocarbon-dominated economy.
Perform a SWOT Analysis on Riyadh Air. Use this analysis to:
Create a marketing strategy. What will be the competition? How can it be successful?
Create an operating strategy. Deploying the 39 787s, recommend utilization that will maximize productivity. Should the airline aim to be a “super connector” like Emirates or a “point-to-point” carrier, to/from Riyadh, or other Saudi Arabia destinations?
For some years the target number of tourist arrivals to Saudi Arabia has been 100 million annually by 2030. This has been recently revised to 150 million as noted by the GACA. Is this realistic and should Riyadh Air base its future aircraft acquisition decisions on these numbers?
