My padlet by Emma Fu

Problem Statement

emmaf92302 — 2023-12-06 03:21:20 UTC

As the primary worldwide airline organization established since 1997, Star Alliance has to find out ways to solve previously existing internal member airlines’ sustainability of combined management crisis and to create recommended business strategies that could help the airline industry sustain its operations, build up customer images, and regain profit during the devastating effects of Covid-19 pandemic.

Analysis

emmaf92302 — 2023-12-06 03:33:24 UTC

Star Alliance is the world's largest and competitive global airline alliance. Before the Covid-19 outbreak, there existed issues regarding combined organization and strategy in Star Alliance. To be worse, the impact of COVID-19 on the airline industry has turned out to be critical. Due to pandemic restrictions, more than 7.5 million flights were cancelled, globally 54 percent lower passenger demands, estimated $84.3 billion loss shortly in 2020. This is urgent and important for Star Alliance to take efficient measures to endure its internal and external crisis, to help member airlines resume profitable status and reshape customer image by aligning with the health and safety requirements.

Alternatives 1& 2

emmaf92302 — 2023-12-06 04:08:31 UTC

A 1: Provide all-inclusive travelling programs, let any customer choose a travel package including promotional business event tickets and hotels with standard safety procedures, equipment. Star Alliance will charge 3-4% service fees.

Pros: 1. Extend the feature global conventions and events services, and greatly meet the expectations and needs of its frequent flyers.2. Help industry rebuild customer images by ensuring safe and complete service, and increase extra profits on package service fees.

Cons: 1.Uncertainty travel restriction and cancellation. 2. Advertising may be costly, especially if all alliance members require custom ads and promotional material to increase.

A 2: Reduce investment on information technology and human resources development.

Pros: Release the cost structure of all airlines, thus there will be more financial space for the new safety and health compliance costs.

Cons: This may add competitors advantages on internet technology infrastructure to support operations

Recommendation

emmaf92302 — 2023-12-06 04:10:39 UTC

Solution 1 is a more suitable and effective choice for Alliance to solve the problem and thrive in the pandemic. One can see the main profitability factor for all major airlines was Corporate clients and especially those who plan to long-haul routes. In addition, it does not have the funds to support member airlines like the government could. As long as it provides any clients with fully completed service on the base of safety protection, which could help rebuild the trust of customers and promote safe travel arrangements. Star Alliance will be the first choice for the customer who needs safe flight travel. Moreover, economic benefits to the all-inclusive package will last even after the pandemic. Alternative 2 might mitigate the financial issues in a time while it will consequently impact on the future operational efficiency and competition status related to the advanced internet technology and training of Star Alliance.

Implementation

emmaf92302 — 2023-12-06 04:19:13 UTC

Align with the Government health and safety guidelines
Create a set of health and safety procedures to maintain the safety of its customers and staff.
Offer training programs for the staff, coaching them how to spot the signs, and how to deal with infected passengers.