Emirates Aviation University Aviation Strategy

Strategies for Aviation
Service Providers
Session 6
Overview
This session is about:
1. How strategies are developed by different aviation
service providers
2. Practical cases of business strategies implemented
by some key aviation players, namely: airlines,
airports, air traffic management organizations and
regional airline associations
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Session Contents
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1. Business strategies in the aviation industry
2. Components of aviation business strategies
3. Aviation Strategies for Airports
– Case Study: DFW International Airport, USA
4. Aviation Strategies for Airlines
– Case Study: Aerlingus, Ireland
5. Aviation Strategies for ANSPs
– Case Study: EUROCONTROL
6. Aviation Strategies for Aviation Associations
– Case Study: ASSOCIATION OF EUROPEAN AIRLINES (AEA)
Business Strategies in the Aviation Industry
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• Almost all key players in the aviation industry engage in strategic
planning
• There are no specific methodologies or procedures regarding
business strategies for the aviation industry. The generic business
methods, approaches and procedures we studied before, also
apply to the aviation industry
• The benefits of developing strategies, is for setting a purposeful
course of action, leading to the achievement of some key
objectives
• Aviation strategies include high levels business plans, usually
followed-up by other, more specific, lower level plans (operational)
Components of Aviation Business Strategies
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Usually, aviation business strategies contain the following ingredients:
1. High level contents
2. Limited in time (i.e. 5-years plan)
3. Contain strategic statements (mission, vision, goals, values)
4. Contain strategic analyses (past, present, future)
5. Establish SMART targets/ objectives
6. Establish roles and responsibilities
7. Establish guiding principles and methodologies (if applicable)
8. Define priorities and focus areas
9. Risk analysis and management
10. Establish KPIs to measure progress
11. Establish action plans
[Please, follow your lecturer’s
instructions]
EXERCISE
(30:00)
Case Study
DFW International Airport
Strategic Plan 2016 – 2020
Organisation and Contents
A five-year strategic plan (2016-2020) was prepared
• Contents
➢ Vision, mission and values
➢ Customer experience
➢ Business Performance
➢ Employee Engagement
➢ Operational Excellence
➢ Community Engagement
➢ Safety and Security
➢ The Future is Ours
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Introduction
• DFW Airport is the third busiest airport in the world based on the number of
operations and the 10th largest based on passengers. We serve 159
domestic non-stop destinations and 56 international destinations and have
20 cargo airlines providing worldwide freighter service
• DFW is one of the most successful airports in the world by any definition and
we are recognized for our innovation, leadership, drive for excellence and
talented employees. Over the past five years we achieved almost every
strategic objective and performance goal that we set out to achieve
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Mission, vision, goals and values
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Exercise
Read as a team the provided strategic plan
for DFW Int. Airport, and answer the
following:
1. Does the plan adhere to the best practices
regarding strategic plans? Why?
2. Critically identify and comment the three
strongest and the three weakest points of the
plan
3. Suggest a few improvements, that in your
opinion are important and should be there
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[Please, follow your lecturer’s
instructions]
EXERCISE
(30:00)
Case Study
A Strategy for AerLingus
A Strategy for AerLingus
A strategy was prepared to
AerLingus, by Accenture – a top
consultancy firm
Contents
1. Strategic Position
2. Strategic Choices
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Exercise
Read as a team the provided strategy for
AerLingus, and answer the following:
1. Does the plan adhere to the best practices
regarding strategic plans? Why?
2. Critically identify and comment the three
strongest and the three weakest points of the
plan
3. Suggest a few improvements, that in your
opinion are important and should be there
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[Please, follow your lecturer’s
instructions]
EXERCISE
(30:00)
Case Study
EUROCONTROL
Network Strategy Plan
2020 – 2029
Introduction
Part of EUROCONTROL’s obligations is to “develop, maintain and implement a
Network Strategy Plan”
The Network Strategy Plan is a new tool for managing the European ATM network.
It responds to the SES performance objectives and to the Business requirements
expressed by the different stakeholders
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Exercise
Read as a team the provided case on Eurocontrol’s
Network Strategy Plan. Answer the following
questions:
1. Does the plan adhere to the best practices regarding
strategic plans? Why?
2. Critically identify and comment the three strongest and
the three weakest points of the plan
3. Suggest a few improvements, that in your opinion are
important and should be there
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[Please, follow your lecturer’s
instructions]
EXERCISE
(30:00)
Case Study
Association of European Airlines (AEA)
Strategy Plan
2015 – 2019
Introduction
The Association of European Airlines has for more than 60
years been the representative body of Europe’s network
airlines. Amongst its 30 members are many of the world’s most
recognized and respected brand names in the field of air travel.
• AEA’s members carry 400 million passengers annually, and
5.5 million tones of cargo, operating 2,550 aircraft on 10,000
flights a day to 600 cities in 160 countries. They provide
around 370,000 jobs directly and generate a total turnover
of €100 billion.
• AEA has developed a Strategic Plan for the coming years
which has been named “Flightpath 2019”
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Exercise
Read as a team the provided case on AEA’s
“Flightpath 2019”. Answer the following questions:
1. Does the plan adhere to the best practices regarding
strategic plans? Why?
2. Critically identify and comment the three strongest and
the three weakest points of the plan
3. Suggest a few improvements, that in your opinion are
important and should be there
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Conclusion
• Strategic plans are a common practice among aviation service providers. They do exist
worldwide
• From airports, to airlines, air traffic management organizations, up to many other aviation
organizations, all engage in regular strategic planning exercises
• Despite the diversity of business activities in the long aviation supply chain, all players produce
strategic plans that tend to adhere to common industry standards and best practices
• In highly competitive business environments, as it is the case of the aviation industry,
sometimes strategic plans are considered “confidential” and hard to obtain from public sources
on fears of giving away secretive competitive advantages to competitors
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Thank you!
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We’ll start again in 15 mins!
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Grab a beverage and stretch!
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BREAK
Readings
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• DFW International Airport, Strategic Plan 2016 – 2020
• Aerlingus Strategy 2011
• Eurocontrol, “Network Strategy Plan 2020 – 2029”, 2019
• Association of European Airlines, “Flight Path 2019”, 2014