2015 KICC Case - Part 1

KPMG 2015 International Case Competition:
Achieving Strategic and Performance Objectives at Emirates Airlines
Part 1: Developing International Airline Expertise

Brian Ballou
Dan Heitger
Professors of Accountancy
Co-Directors, Center for Business Excellence
Miami University
Oxford, Ohio USA
To provide professional accounting and advisory services to a client as part of an international accounting
firm, professionals should develop a sufficient level of knowledge about the client’s primary industry or
industries. This case exposes you to a number of core elements that are needed to provide high-quality
professional services for one of the world’s leading international airlines. The first part of the case requires
you to use limited information about the international airline industry and brief descriptions of key inherent
industry-level factors to (1) “build” an airline by selecting and prioritizing the factors that can best be
exploited to develop and sustain a competitive advantage in the industry, (2) suggest risk management
strategies that airlines might employ when exploiting each factor to better enable it to achieve such an
advantage, and (3) consider the impact of the chosen risk management strategies on other industry factors
to understand potential unintended consequences that might lead you to alter your risk management
strategies.
For years, the airline industry has been subject to a highly volatile environment involving a number of
external forces that are difficult to manage. When looking through the lens of an airline seeking to be a
market leader, how do airlines implement effective strategies for differentiation that create long-term value
and success? Gaining industry expertise is an essential step for evaluating an airline to determine if its
strategies are likely to create a successful, sustainable competitive advantage. Through a continuous process
of identifying and assessing opportunities and risks, organizations are able to adjust strategies to adapt to
changing environmental and industry conditions to ensure that long-term value can be developed and
maintained. This case will help you understand how to develop airline industry expertise and how it is
applied to an existing company.
To prevent you from seeking funding from the capital market, assume that your airline will be financed by an
investment from the government in the country where the airline originates, along with private equity
funding from sources that are willing to be patient while the airline develops a competitive niche within the
industry.
An Overview of the International Airline Industry
To develop industry knowledge, you typically would perform extensive research using both firm-developed
and outside resources. For this case, we provide you with examples of industry information that is
representative of what is available on the international airline industry.
For example, Massachusetts Institute of Technology (M.I.T.) has established a multinational team of faculty,
staff, and graduate students to study the global airline industry. The program offers the following overview
of the global airline industry (http://web.mit.edu/airlines/analysis/analysis_airline_industry.html):
The international airline industry provides service to virtually every corner of the globe, and
has been an integral part of the creation of a global economy. The airline industry itself is a
major economic force, both in terms of its own operations and its impacts on related
industries such as aircraft manufacturing, global business travel, and tourism, to name a
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. NDPPS 341743
few. Few other industries generate the amount and intensity of attention given to airlines,
not only among its participants but also from government policy makers, the media, and
almost anyone who has an anecdote about a particular air travel experience.
During much of its development, the global airline industry dealt with major technological
innovations such as the introduction of jet airplanes for commercial use in the 1950s,
followed by the development of wide-body “jumbo jets” in the 1970s. At the same time,
airlines were heavily regulated throughout the world, creating an environment in which
technological advances and government policy took precedence over profitability, and
competition. It has only been in the period since the economic deregulation of airlines in
the United States in 1978 that questions of cost efficiency, operating profitability, and
competitive behavior have become the dominant issues facing airline management. With
the United States leading the way, airline deregulation or at least “liberalization” has now
spread to much of the industrialized world, affecting both domestic air travel within each
country and, perhaps more importantly, the continuing evolution of a highly competitive
international airline industry.
Below are exhibits that illustrate industry information that may be beneficial to your team. Both Exhibit 1
and Exhibit 2 reflect the magnitude and underlying competitive environment within the industry. The
statistics reflect the key components of revenue—passenger and cargo—and the key expense categories—
fuel vs non-fuel. Further, load factors are presented, which represent percentages of seats used and total
weight of the flight—both of which are factors associated with maximizing revenues and minimizing costs,
respectively. Other important key performance indicators not shown on this chart but shown for a specific
airline in Part 2 of the case are revenue and costs per available seat.
Exhibit 1
IATA Industry Statistics
Source: http://www.iata.org/pressroom/facts_figures/fact_sheets/Documents/industry-facts.pdf
2
Exhibit 2
World Airline Awards Top 20 Airlines: 2014 and 2013
Airline 2014 2013

Cathay Pacific 1 6
Qatar Airways 2 2
Singapore Airlines 3 3
Emirates 4 1
Turkish Airlines 5 9
ANA All Nippon Airways 6 4
Garuda Indonesia 7 8
Asiana Airlines 8 5
Etihad Airways 9 7
Lufthansa 10 11
Qantas Airways 11 10
EVA Air 12 12
Swiss 13 16
Thai Airways 14 15
Virgin Australia 15 13
Air New Zealand 16 18
British Airways 17 27
Malaysia Airlines 18 14
Hainan Airlines 19 19
Bangkok Airways 20 31
Source: Skytrax World Airline Awards are coveted Quality accolades for the world airline industry. Travelers
from across the globe take part each year in the world’s largest airline passenger satisfaction survey to
decide the award winners. The World Airline Awards are a global benchmark of airline excellence, and widely
known as the Passengers Choice awards.
http://www.worldairlineawards.com/Awards_2014/Airline2014_top20.htm
Regardless of how an airline structures its organization and operates the business processes within its
model, there are a number of external factors that influence the airline industry that can enhance or hinder
an airline’s ability to achieve its objectives. Airlines can be forced to alter their business models, pricing
structures, revenue forecasts, and cost structures as a result of changes in these factors. Understanding and
monitoring these forces help airlines identify and manage risks and exploit opportunities in this highly
competitive industry. Many professional services firms use PESTLE—political, economic, social, technical,
legal, and environmental—factors to categorize external forces that serve as sources of risks and
opportunities. For example, the market research firm Market Realist (marketrealist.com) describes PESTLE
factors for the international airlines as follows:
• Political—Government intervention can be necessary to protect the passengers’ interests and airlines
operations’ safety measures
3
• Economic—Fluctuations in oil prices can dramatically impact an airline’s profitability. Further, changes
in disposable income or business slowdown can significantly impact ability or willingness for personal
and business travelers to fly, particularly on luxury international airlines
• Social—Demographic trends associated with globalization lead to increased use of airline travel for
personal or business reasons
• Technical—Enhancements in technology can lead to decreased business travel based on enhancements
in teleconferencing. Further, advancements in technology-enhanced fuel efficiencies reduce operating
costs
• Legal—The airline industry is heavily regulated both via international and domestic laws and regulations
• Environmental—Airlines have committed to reduce their carbon footprint. For example, the
International Airline Transport Association encourages a strategy whereby airlines address climate
change through a carbon-neutral growth approach.
To illustrate how external forces can affect the industry, consider the impact of the cost per barrel of crude
oil (see expense components listed on Exhibit 1 above) on the overall profitability on the international airline
industry by examining Exhibit 3 below.
Exhibit 3
Industry Fuel Expenses and Net Profits
4
Below are brief descriptions of many of the key factors—both internal and external—that successful airlines
are able either to exploit to develop competitive advantages or lead them to struggle (or even fail) based on
their inability to effectively manage them.
Factors Impacting the Airline Industry Across Five General Categories
Safety Factors
Airspace
Flight routes are carefully coordinated to optimize the number of aircraft that can be flying in a given
airspace at a specific time. Careful coordination is needed to ensure sufficient distance between aircraft—
both vertically and horizontally within given aircraft lanes and altitudes. A lack of communication or poor
planning can result in near misses or collisions in the air or on runways, as has been evidenced by a number
of high-profile close calls in recent years.
Passenger Screening
Ineffective security screening can lead to (1) criminals or banned individuals being able to board planes, (2)
individuals boarding planes with unauthorized items or health issues, or (3) violations of personal rights or
perceived racial or cultural profiling. For example, a number of airlines have begun screening passengers for
fevers to prevent the spread of Ebola. There have been numerous accounts globally of screening not
detecting banned items and accusations of inappropriate detaining and privacy violations to suggest this risk
is difficult to manage.
International Health Concerns
Air travel involves high population densities in close surroundings, which can result in rapid spreading of
diseases across vast distances. For example, international airline travel has been widely cited as the most
critical risk factor for an international epidemic and especially potential pandemics such as avian flu or Ebola.
Accordingly, international airlines become part of political and social debate whenever diseases emerge that
pose epidemic or pandemic risks.
Mechanical and Pilot Safety
Flight Safety relies on a multitude of factors involving mechanical and pilot safety. The number or types of
lapses in mechanical or human performance have dramatic impacts on the safety of passengers, employees,
airport personnel, and communities on the ground below an aircraft. Further, low profit margins and track
records of bankruptcy in the deregulation era cause stakeholders to worry that airlines might cut costs that
lead to enhanced safety risks, such as outsourcing aircraft maintenance to third parties.
Terrorism
Terrorism involving airlines has been a significant concern since the first commercial airline hijackings in the
1930s. The events of September 11, 2001 in New York and Washington, DC, significantly enhanced global
emphasis on terrorism risk for airlines. The magnitude of the impact of domestic or international terrorism is
evidenced by two 2014 events involving Malaysian Airlines Flight 370 that disappeared over the Indian
Ocean and Malaysian Airlines Flight 17 that was shot down by Russian separatists.
5
Passenger Satisfaction Factors
Aircraft Sanitation
Terminal and aircraft sanitation have a significant impact on passenger satisfaction. There have been
numerous press articles about airport and airline sanitation across the globe. A dirty terminal or aircraft is
more likely to be viewed as suggesting poor quality across numerous aspects of the airline. Areas of concern
include aircraft seats, arm and head rests, and air valves; airport waiting areas; airport washrooms; and
aircraft lavatories. For example, poor sanitation can lead to the spread of common illnesses, such as
common cold or influenza viruses.
Airline Fees
Airlines have begun charging fees in addition to fares charged for the ticket. Examples of fees include
baggage (checked and carry-on), paper tickets, changing flights, curb-side check-in service, early boarding,
wider seats, more legroom, and amenities such as food, beverage, headphones, blankets, or lavatory usage.
Passengers often perceive these fees as unfair, and they lead to such resulting factors as too many bags
carried on planes and disruptive boarding procedures.
Flight Delays and Cancellations
Flight delays can be caused by a number of factors, including poor weather, air traffic congestion,
mechanical problems, airport disruptions, information technology breakdown, or crew availability. Real or
perceived breakdowns in an airline and passenger “contract” can determine whether a passenger travels
with the airline again. On-time arrivals and delays are key metrics for the industry and often are used to
distinguish or criticize overall quality and customer satisfaction.
Disorderly Passengers
Passengers can disrupt flights as a result of being under the influence of drugs or alcohol, becoming angered
about personal issues or airline service, or engaging other passengers for various reasons. At a minimum,
these disruptions can significantly reduce the comfort or satisfaction of other passengers. In more extreme
situations, these disruptions can lead to forced landings of planes to remove the passenger(s).
Passenger Capacity
Capacity is a significant concern for airlines because demand for business and personal travel is both
seasonal and fluctuates across days and times of the week. Insufficient capacity leads to overbooking and
getting “bumped” from a scheduled flight. Further, attempts to increase capacity using more seats per
aircraft lead to narrower seats and/or reduced legroom. Excess capacity causes airlines to not be able to
cover their costs of the flight, which tempt them to take actions that lead to passenger dissatisfaction.
Employee Reliability
Airlines have recently faced employee issues impacting customer satisfaction. Having a reliable and ethical
employee base can impact customer satisfaction, safety and other factors. Background checks should be
considered for key employees in a position of trust. Recent headlines have reported pilots texting while
flying, flying while intoxicated, flying outside the flight path, etc. Baggage employees have been reported
stealing bags from the cargo area or while in transit. How much an airline pays its employees sometimes
has an impact on the labor quality.
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New and/or Extended Passenger Rights in the United States or European Union
There likely will be increased burden for the airline for compensating passengers for delays and effects of
irregularities whether or not the fault of the airline. Examples include current tightening of rules so that
airlines are likely to bear the burden of compensating customers more frequently, even if the delays on
runways or other irregularities are not the fault of the airline.
Third-Party Factors
New and/or Retracted International and Local Regulations and Laws
Airlines face new regulations in the countries where they fly or for larger government bodies like the
European Union (EU). By flying through a country’s airspace, landing at its airports, or carrying its citizens,
airlines are subject to these jurisdictions when new regulations or laws are enacted. Further, on rare
occasions deregulations occur (e.g., allowing passengers to use electronics throughout an entire flight has
recently occurred in the United States) that also create new opportunities for airlines to exploit.
Boeing and Airbus Aircraft Quality and Delivery Timing for New Long-Haul Models
Luxury international airlines can afford and wait on orders for the major new long-haul aircraft models—
Boeing’s 787 Dreamliner and Airbus’ A380. These aircraft enable them to create more luxurious premium
class amenities such that the aircraft more resemble a cruise ship than a traditional airplane (e.g., Emirates
Airlines has private suites and shower spas in their first-class seats). These planes are light and can fly very
long distances. However, the long lead times for aircraft orders expose airlines to financial losses should the
planes be delayed in production (e.g., pilots hired to fly planes might be on the payroll while awaiting
delayed planes).
Airspace Political Restrictions
A lack of obtaining needed traffic rights to/from/within countries can hamper access to lucrative territories
due to issues, such as the protection of national carriers. Subsequently, such actions can lead to a slow-
down of expansion and surplus capacity with aircrafts ordered well in advance in the planning processes.
Examples of countries who have enacted such restrictions are Germany, France, Italy, Japan, and India.
Air Traffic Control Coordination
Air space limitations and lack of coordination between countries’ information technology systems can lead
to mid-air or runway collisions or near misses, strikes, ineffective management of air space leading to delays
and pollution, inadequate fuel burn, etc. The EU is a prime example of a region struggling with effective air
traffic control coordination.
Online Travel Agents and Travel Search Engines
Online Travel Agents (OTAs) help consumers schedule itineraries by selecting airlines and other aspects of
travel, and they play an increasingly important role in distribution to customers—albeit their consumer
display models often favor airlines with lower fares rather than luxury airlines. Similarly, the nature of travel
search engines (TSEs) is to focus on identifying the lowest fares across airlines via price transparency (they
are popular in well developed markets like EU and United States). Such fully transparent markets can lead to
a spiraling of lower fares, especially in low (demand) seasons and periods with overcapacity. Examples of
TSEs are Kayak, Momondo, Hotels.com, Expedia, Travelocity, Supersaver, etc. In the modern world, they are
quickly replacing traditional travel agents and direct reservations offsetting the loyalty programs.
7
Operating Factors
Information Technology Security
Problems with sufficiently protecting the information technology security of key systems can cause a range
of issues for an airline. Problems can include misbookings, lost baggage, overbooked planes, system
disruption, employee scheduling issues, theft of personally identifiable passenger or employee information,
as well as enabling terrorists or other criminals to board aircraft successfully.
Crisis Management and Emergency Preparedness
A lack of an effective crisis management plan, including training and preparedness to handle the press, next
of kin, and stakeholders in general, can significantly damage a brand or even ground an airline. In addition,
many airlines have an established crisis management structure and system for disruptions, such as aircraft
crashes; however, few airlines have developed flexible plans sufficient to handle a broad spectrum of
potential crisis events (e.g., a financial crisis in a low-profit environment). Effective crisis management is
paramount and requires having effective corporate governance and executive leadership.
Corruption
Increasing numbers of flights across the globe are competing for airport gate availability and landing strip
slots, which are fixed at any given point in time. Competition for these scarce resources creates incentives
for airlines to secure gates and slots using practices that violate international or domestic corruption laws in
certain countries. Further complicating this issue is that countries like the United States enforce
anticorruption laws for its airlines in all jurisdictions in which they fly. The most significant corruption risk is
bribery.
Compliance with Regulatory Standards
Since the airline industry is so heavily regulated to ensure safety, privacy, and national security, airline
operations are impacted by regulatory standards in most facets of operations. Failure to comply with
regulatory standards can lead to the following outcomes: permanent or temporary loss of operating license
(overall or in specific countries), fines or criminal charges, or significant reputational damage that can impact
current or future performance.
Flight Crew, Maintenance, and Ticketing/Gate Agent Employee Behavior
The flight crew, maintenance, and ticketing/gate agent employees are responsible for how the airline
operates. Examples of how behavior affects operations include delays due to gate changeover; quality of
take-offs, landings, and in-air flying; overall customer experience; inventory management; maintenance
issues in between flights; baggage handling; passenger processing, etc.
Non-Passenger-Related Cargo
Non-passenger-related cargo is defined as the movement of goods unrelated to passengers for a fee.
Revenues from this cargo represent 15 percent–20 percent of the average airline’s revenues. Airlines
manage the amount of cargo they transport by altering their passenger luggage allowances. Factors such as
type of aircraft, tonnage capacity, and fuel required for the given flight all affect cargo capacity. Further,
there are risks associated with the type of cargo on board, most notably the crash of ValuJet Flight 592 in
1996 due to an explosion related to cargo being transported, which led to the airline changing its name to
AirTran.
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Occupancy and Profit Management
Managing aircraft occupancy is critical for balancing profits and passenger satisfaction. Industry data
suggests that the average flight needs to sell 80 percent of its seats at nondiscounted rates to break even.
Airlines know this percentage and can manage non-passenger-related cargo capacity by trading off
passenger capacity for cargo space. Failure to properly forecast occupancy leads to flights being undersold,
harming profitability or leading to canceled/combined flights or oversold flights such that passenger
satisfaction is harmed.
Scheduling and Routing
Choosing airports, flight patterns, and network strategies are important decisions for carrying out efficient
and effective airline operations. Strategies for scheduling often determine the size of aircraft needed (e.g.,
regional Embraer aircraft that can travel 2,300 miles versus Airbus A380s or Boeing 787s jumbo aircraft that
can travel 10,000 miles). Further, using a hub-and-spoke network places more emphasis on selecting
appropriate airports to serve as hubs, as opposed to point-to-point networks which place more emphasis on
the number and location of airports used in the system.
Financial Factors
Aircraft Costs
Purchasing or leasing aircraft is a key financial issue for any airline. For example, the price of the new Airbus
A380 jumbo airliner is over US$400 million. While aircraft can remain operationally functional for decades,
they require much ongoing maintenance to reflect changing technologies and customer demands beyond
the significant costs associated with replacing parts and ongoing routine maintenance. The decision to buy
aircraft is riskier because of the cost borne on the airline, but it can provide significantly greater returns than
leasing, as evidenced by the high financial returns earned by airline leasing companies.
Airport Fees
The cost of building and operating airports is either borne directly by airlines who use the airports or
separate airport entities that charge airlines fees to use their gates and runways and to have access to
terminal space, baggage claim areas, hangers, etc. In some jurisdictions, airlines can explicitly pass along a
portion of these fees directly to passengers. However, most of the fees are a cost of doing business for the
airlines. These costs can dictate where airlines fly and how many flights per day originate and land at an
airport.
Employee Costs—Wages, Benefits, and Training
Employee costs are a highly material component for most business processes within an airline—
approximately 20 percent–25 percent of operating expenses for international airlines. These costs can
greatly reflect a company’s strategy, while also directly or indirectly impacting financial risk. Placing
emphasis on employee benefits and workplace satisfaction may reduce operating costs elsewhere due to
higher productivity, but the cost of sustaining such behaviors can lead to poor financial performance during
industry downturns. For many airlines, pilots, maintenance workers, and flight attendants/terminal
employees are unionized. How effectively an airline manages union contracts has a material impact on
financial performance.
9
Fuel Prices
Fuel prices fluctuate on a daily based on the international price of a barrel of oil. This essential resource
accounts for at least 25 percent of operating expenses for the average international airline. Since the
majority of the airline costs are fixed, an increase in fuel prices can have significant impacts on airline
profitability. Many airlines utilized forward and futures contracts in an attempt to effectively hedge fuel
prices, which was a key reason that Southwest Airlines in the United States was profitable during the last
decade when many other U.S. airlines filed for bankruptcy protection while battling financial crises caused
by a number of factors. Some airlines have complex fuel hedging programs that help mitigate the risk of fuel
cost volatility, but those programs also require fuel hedging experts to be on staff at an airline.
Government Subsidies
For many countries, the domestic-based airline is government-owned. Accordingly, these governments are
able to provide subsidies to help cover shortfalls or enhance an airlines perceived profitability. Several
international airlines are opposed to government subsidies because they can lead to insufficient discipline
and rigor around operations and financial risk management. When operational or safety failures ensue at
these airline, the industry as a whole suffers, including the many airlines that do not receive government
subsidies. Further, airlines that do not receive subsidies complain that their local governments need to play
a greater role to ensure that commercial aviation is playing on a level playing field.
Ticket Pricing
The most important revenue metrics for an airline are revenues per available seat and per passenger mile
since seats and miles are the scarce resources that constrain any airline (not including non-passenger-related
cargo). Key decisions an airline needs to make are ticket pricing (including any discounting strategies to
maximize capacity); additional fees to charge passengers; one-way versus round-trip versus multicity pricing;
pricing for first class, business class, and coach; upgrade policies; number of premium seats with extra space
and leg-room, etc.; number of short- and long-distance flights offered (including the size of aircraft used for
different flight lengths). Since airline flights are time sensitive (once a flight departs, empty seats have no
value), airlines can vary pricing dramatically on a real-time basis.
Weather Delays and Acts of Nature
Airlines face delays on an ongoing basis for bad weather associated with high winds, snow, ice, and heavy
thunderstorms. Other so-called “acts of nature” caused by volcanic activity in the atmosphere, earthquakes,
hurricanes, flooding, etc., occur frequently enough to create significant financial risk for international airlines
that use tight flight schedules at busy airports with congested runways and airspace.
10
Requirements:
Suppose that you are advising an international airline on how to “build” a successful airline that is better
able to exploit opportunities than competitors to create and sustain shareholder value. For this
engagement, assume the client is an emerging airline based in the EMEA (Europe, Middle East, and Africa)
region of the world. Currently, the airline is comprised of a comparatively small fleet that offers domestic
and international long-haul flights using large aircraft. The airline has received significant new funding
from both its government and a recent private equity offering that enables it to change the business
model as it sees fit. As a result, the airline has approached you to determine the best way for it to
generate returns to maximize long-term shareholder value.
1. Identify one industry factor from each category (safety, passenger satisfaction, third-party,
operating, and financial) that you believe presents the best opportunity to exploit relative to
competitor airlines. Please rank order each of the five factors from most important to least
important for building your airline’s strategy for success. When developing your overall strategy,
please consider your desired risk appetite for the airline, keeping in mind that higher risk appetites
are associated with higher desired return but higher risk of failure, while lower risk appetites are
associated with lower desired return but lower risk of failure.
2. For each factor identified in Requirement 1 as an opportunity to exploit in order to develop a

competitive advantage, recommend an appropriate risk management strategy to help ensure that
strategic objectives are achieved (i.e., achieving a desired rate of return versus failed strategies
that destroy stakeholder value). For each strategy, describe the rationale supporting your
recommendation. Your risk management strategy in general should be selected from Exhibit 4
below; however, provide explicit recommendations for each risk based on the general strategy.
Exhibit 4
General Strategies for Managing Risks Associated with the Factors
Avoid No longer engage in underlying activities subject to failure (i.e., choosing not to pursue an
associated strategy based on the challenge of managing risks associated with the factor)
Accept Do nothing about the risks associated with the factor but continue activity (i.e., viewing risks
associated with the factor as inevitable and unavoidable)
Transfer Shift the risks associated with the factor through insurance or forming a strategic alliance
Reduce Mitigate the risks associated with the factor by designing and implementing proactive policies
and procedures within business processes
3. Describe potential consequences of each risk management strategy you recommended in

Requirement 2 (associated with the factors you selected in Requirement 1) on one or more of the
other industry factors provided in the case (you may include factors that were not on your list of
five most important to exploit). For example, the risk management strategy might impact another
factor in a positive or negative fashion (i.e., it either helps or hurts the airline’s ability to achieve
its strategic objectives). Based on the consequences you identify, suggest any changes to your risk
management strategies and describe why you believe that such changes are necessary.
11

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KPMG 2015 International Case Competition:

Achieving Strategic and Performance Objectives at Emirates Airlines

Part 1: Developing International Airline Expertise

An Overview of the International Airline Industry

Airline 2014 2013

Factors Impacting the Airline Industry Across Five General Categories

International Health Concerns

Mechanical and Pilot Safety

Flight Delays and Cancellations

New and/or Retracted International and Local Regulations and Laws

Airspace Political Restrictions

Air Traffic Control Coordination

Online Travel Agents and Travel Search Engines

Information Technology Security

Crisis Management and Emergency Preparedness

Compliance with Regulatory Standards

Flight Crew, Maintenance, and Ticketing/Gate Agent Employee Behavior

Scheduling and Routing

Employee Costs—Wages, Benefits, and Training

Weather Delays and Acts of Nature

2. For each factor identified in Requirement 1 as an opportunity to exploit in order to develop a

3. Describe potential consequences of each risk management strategy you recommended in

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