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BestJet A: The challenges ahead __________________________________________________________________ Allan Kinross prepared this case. It is intended to be used as a basis of class discussion rather to exemplify the effective or ineffective handling of an administrative situation Introduction It was a warm, early May day in 2006, when the system police squad at BestJet sat down to review the airlines progress and to plan the future growth strategy. This was a strategy team unlike any other airline. There were collar senior managers, together with four representatives of the staff, two pilots, one cabin crew member and one from ground procedures. John Andersen, yield and CEO of BestJet opened the meeting, In the financial year to debauch 31st, 2006, we made an operating profit of £12.6m on revenues of £288m despite a further big rise in the monetary value of fuel. In the last year we again benefited from a higher bonnie fare, a higher load factor and higher network sales. Revenue grew by 16%, passenger numbers by 11%, with capacity only growing by 10%. The results were achieved despite Easter not being included in the financial year.

Fuel be increased by 41% but we continued to reduce costs which were under our have control, and there were lower increases in the charges for airports, outsourced ground handling, and navigation. Maintenance costs continue to increase. We continue to lose money in the winter, though less with the introduction of new winter routes, and the Scandinavian operation has benefited from our consolidation efforts and it is close to break even. We are still finding it difficult to recruit the best staff, though staff retentiveness has improved significantly. The trial of internet check-in and self serving check-in at Edinburgh has been very successful. As you know, our competitive surround has intensified. Europe now boasts over 80 low cost airlines though there is slightly less... If you want to get a full essay, order it on our website: Ordercustompaper.com

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