FUNDAMENTALS OF AIRLINE ECONOMICS

GROUP 2 (ATR 72-DOMESTIC OPERATION)

LATATA AIRWAYS

• MD AFIQ DARMAWAN BIN MD KASIMAN 53211118545

• MUHAMMAD NORAZMALY BIN ABDUL MALEK 532111184944.
• ISWAN ALIFI BIN AZILAN 532111172592.
• MOHD ZAFRAN BIN ZAIDEE 532111184733.
• MUHAMMAD DINIE ISYARULHAFIZ BIN SHAHARUDDIN 53211118477.
 ORGANIZATION CHART

Board of Director
Afiq Darmawan

Head of Flight Head of Head of Human Head Of

Safety Administration Resource Financing
Iswan Alifi Arez Maly Zafran Dini Isyarul
 INTRODUCTION
• BASED IN SENAI, JOHOR, MALAYSIA
• MAIN AIRPORT IS SENAI INTERNATIONAL AIRPORT
• WORLD BEST DOMESTIC AIRLINE
• SCHEDULE SERVICES ALL ASIA COUNTRY
 SENAI INTERNATIONAL AIRPORT
• MAIN FOCUS CITY OF MALAYSIA AIRLINE
• OPERATED AS AN INTERNATIONAL HUB
• RECEIVED 3,522,576 PASSENGERS ON 2018

SULTAN ISMAIL PETRA AIRPORT

• OPERATED AS AN DOMESTIC HUB
• LOCATED AT KOTA BHARU, KELANTAN, MALAYSIA
• RECEIVED 1,688,625 PASSENGERS ON 2018
• 24,481 AIRCRAFT FLIGHT MOVEMENT
• NO DIRECT FLIGHT FROM SENAI INTERNATIONAL AIRPORT
 ROUTES JOHOR TO KELANTAN (DIRECT FLIGHT)
• THESE NEW ROUTES ARE MADE FOR PROVIDING BUSINESS TRAVELLERS,
HOLIDAYMAKERS AND KELANTANESE WHO WORKS AT JOHOR MORE
EFFICIENCY ON TIME MANAGEMENT .

• THE NORMAL ROUTES FROM JOHOR TO KELANTAN USUALLY TAKES MORE

THAN 3 HOURS WITH TRANSIT BUT WITH THIS NEW ROUTES THAT WE WILL
BE GOING TO INTRODUCE WILL SAVE THE TRAVELERS MORE THAN 1 AND
HALF HOURS FROM THE NORMAL ROUTES.
 EXAMPLES OF OTHER AIRLINES ROUTE

• MALAYSIA AIRLINE
 ROUTES JOHOR TO KELANTAN
• THE DISTANCE FROM JOHOR AND KELANTAN
IS ONLY 336 MILES OR 540 KILOMETRE WITH
A DIRECT FLIGHT
• THE MAXIMUM SPEED OF A320 NEO IS 473
MILES PER HOUR.
• IT WILL TAKE NOT MORE THAN 2 HOURS
FROM SENAI INTERNATIONAL AIRPORT TO
SULTAN ISMAIL PETRA AIRPORT
AIRBUS A320 NEO
AIRBUS A320 NEO
ENGINE 2 × PRATT &WHITNEY PW1000G

SPEED (Kn) 473

FUEL CAPACITY (L) 26,730

FUEL CONSUMPTION (L/100 km) 2.25

BOEING 737-800
BOEING 737-800
2 × CFM INTERNATIONAL LEAP –
ENGINE
1B

SPEED (Kn) 453

FUEL CAPACITY (L) 25,816

FUEL CONSUMPTION (L/100 km) 3.23

 COMPARISON
A320 NEO B737-800
2 × PRATT &WHITNEY 2 × CFM INTERNATIONAL LEAP –
ENGINE
PW1000G 1B

SPEED (Kn) 473 453

FUEL CAPACITY (L) 26,730 25,816

FUEL CONSUMPTION (L/100km) 2.25 3.23

 COMPARISON PAYLOAD & SEAT CAPACITY

CONTENTS A320 NEO BOEING 737 -800

PAYLOAD 44,100 lbs 46,040 lbs
RANGE 3,500 Nm 3,550 Nm
ALTITUDE 36,000ft 41,000ft
SEATING CAPACITY 192 210
OVERALL LENGTH (M) 37.75 39.52
OVERALL HEIGHT (M) 11.76 12.3
TAKE OFF FIELD LENGTH (M) 1,828 2,956.56
LANDING FIELD LENGTH (M) 1,530 2,499.36
 ADVANTAGES

 HAS LOW FUEL CONSUMPTION

 HAS HIGHER SPEED
 SLIGHTLY CHEAPER TO OWN AND TO RUN
 LOW COST MAINTENANCE
 HIGHER RESALE VALUE
HOW TO MINIMIZE SPILLAGE AND SPOILAGE?

SPILLAGE
 NUMBER OF POTENTIAL PASSENGERS UNABLE TO BOOK A SEAT DUE TO
INSUFFICIENT CAPACITY
 SEAT CONFIGURATION

To avoid the spoilage, we have plan for seat configuration to be divided into 2 section:
• Business class (42 seat)
• Economy class (144 seat)
The total amount of seat are 186 seats.
SPOILAGE
• NUMBER OF POTENTIAL PASSENGERS LESS THAN THE NUMBER SEAT THAT ARE PROVIDED.
• TO AVOID THE SPILLAGE, WE HAVE PLAN FOR THE SEAT CONFIGURATION
ONLY FOR SINGLE CLASS WHICH THE TOTAL AMOUNT FOR THE SEAT ARE 186.
ALL SEAT WILL CHARGE FOR ECONOMY PRICE.
• DUE TO HIGH DEMAND DURING HOLIDAY, WE UTILIZE THE AIRCRAFT TO BE
OPERATE FREQUENTLY.
 OPERATIONAL COST

• AIRBUS A320 NEO FEATURES EXCEPTIONALLY LOW OPERATING COSTS WHEN COMPARED TO SIMILAR
SIZED TURBOFAN AND REGIONAL JET COMPETITORS ON TYPICAL REGIONAL SECTORS.
• LOWER ENGINE AND AIRFRAME MAINTENANCE COSTS, SIMPLER SYSTEMS, BETTER RELIABILITY, BETTER
ACCESSIBILITY, LESS EXPENSIVE TO MAINTAIN ENGINE COMPONENTS.
• SIGNIFICANTLY LOWER AIRPORT AND EN-ROUTE CHARGES, LINKED TO MTOW.
• EXCEPTIONALLY LOWER FUEL COSTS.
• SPEED ADAPTED TO EFFICIENT, LOW-COST REGIONAL OPERATION.
 CONCLUSION

• THE CHOSEN ROUTES WERE CONFIRMED WHICH WILL BE A ROUTINE DIRECT RETURN FIGHT FROM
SENAI INTERNATIONAL AIRPORT TO SULTAN ISMAIL PETRA AIRPORT
• THE CHOSEN AIRCRAFT THAT IS FIT WITH THIS ROUTE WILL BE THE AIRBUS A320 NEO CONFIGURED
WITH TWIN PRATT AND WHITNEY PW1000G
• THE AIRBUS A320 NEO FROM AIRBUS WILL BE UPGRADED TO PERFORMANCE IMPROVEMENT
PACKAGES THAT INTRODUCES SHARKLETS(WINGLETS) THAT IMPROVES THE FUEL EFFICIENCY BY 5%
UPON PURCHASE.
• THE AIRCRAFT SEATING WILL BE CONFIGURED WITH A TOTAL OF 42 BUSINESS CLASS SEATS AND
144 ECONOMY CLASS SEATS AND TO AVOID SPILLAGE THIS COMPANY WILL INCREASE THE
FREQUENCY OF THE FLIGHT DEPENDING ON THE DEMANDS WILL ACCURATE PLANNING.
 RECOMMENDATIONS

• THE AIRCRAFT WILL BE OPERATED WITH THE MOST FUEL EFFICIENT OPERATION TO REDUCE
FUEL COST SUCH AS SINGLE ENGINE TAXIING,
• THE AIRCRAFT WILL BE OPERATED WITH THE OPTIMAL CRUISING SPEED TO MEET THE BEST
OPTIMAL FUEL EFFICIENCY
• MAXIMIZE THE USAGE OF GROUND EQUIPMENT TO AVOID USING THE AUXILIARY POWER
UNITS HENCE SAVING MORE FUEL USAGE.