1 Discount Airlines: Project Management Status Report Prepared By: Brad Bezushko Dilshad Dawood Sean Roggeman Dareece Carrasco

2 Team Members NameRoleResponsibility Jessie VertueProject ManagerProvide direction and funding Steven PriceTechnical operations Technical assistant Operations specialist Edward UnagiCEO, Project Sponsor Provide direction and funding Randy GeraldCIO Monitor project, provide staff Kenny YehmVP, Human Resources Provide staff, Report progress

3 Project Background Our airline is designed to create a friendly environment for our customers. We believe that our organization can increase business and profit margins by recognizing our current and potential clients. Customers can contact us anytime via the internet and attain information regarding our airline. Our goal is to provide low prices and an experience of a life time with great customer service and customer satisfaction.

4 Project Objectives Our objective is to rise above our competition by providing affordable and convenient service to our customers. We understand our customer’s needs and wants and so we will strive to exceed these expectations. In essence, we would like to provide a unique service to our customers while maintaining competitive fares.

5 Critical Assumption and Constraints Our goal is to reach the profit margin within a year this could only be done by the support of the team members as well as our customers. Great communication between different departments can lead the company to its success. Our aim is to compete with our competitors in a way that can get us more business and more potential clients. The goal for our discount airline is to aim for committed customers. We believe that customers should get the best product and services at the lowest cost possible. The project will take approximately one year. The budget is $130 million dollars.

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7 Competition Air Canada CanJet West Jet

8 Analysis of Options and Recommendation There are different ways to address opportunities in order to aim for better and more productive results: Discount airlines can stay to where they are and should not take on an expansion until further data is collected. Discount airlines can expand the business by focusing on adding different soft wares in order to aim for better customer services and success rather than a physical expansion. A large amount of our funding can be used to further develop our database of information for consumers ease of use. Based on all three investor’s opinions we came up with number 3, as the best option for competing in the competitive airline market.

9 Budget Estimate and Financial Analysis Adequate financing is essential for a start-up airline. The financial plan depends on important assumptions. The key underlying assumptions are: We assume a slow-growth economy, without major recession. no unforeseen changes in technology to make products immediately obsolete. Access to equity capital and financing sufficient to maintain our financial plan as shown in the tables. Our research and projections indicate that air travel to and from most Canadian cities is sufficient to provide a new carrier with revenues of $130 million dollars in its first full year of operations.

10 Schedule Estimate Starting up a discount airline is no easy task. Preliminary schedule estimates indicate that this project may take up to two years to be fully operational. With the economy booming in Alberta, the project manager would like to see the airline up and running within 18 months.

11 Potential Risks There are many risks while taking on a project of this size. The volatility of the airline market right now is extremely high. Many discount airlines have failed in Canada because of rapid changes in the demand for air travel. Another potential risk in this project is taking on the major discount airline WestJet. WestJet has had huge success in the discount airline market, and is rapidly expanding across the continent. The rising cost of oil is going to also be a tough hurdle to overcome. Fuel costs alone could sink a new airline and so we must always balance our total