airline simulation: solair

SolAirSolAirAn experience of a lifetimeAn experience of a lifetime

Presented by:Monisha Andruse, Francine Kwan, Crystalle Liceralde, Anne Healy, Valerija Jonikane, Adriana Cusniuriuc

AgendaAgenda

Strategy to date

Interim Performance

Future Plans

Conclusion

Our StrategyOur Strategy

Customer-focused Risk-averse company –

Normal Structure “Test the waters” –

Competitors Focused Strategy New planes – new

routes Diversify product –

cargo & car rental. Web Ticket Sales Reduced cost

ProfitProfit

Q0 Q1 Q2 Q3 Q4 Q5 Q6-700000

-600000

-500000

-400000

-300000

-200000

-100000

0

100000

200000

Cumulative Profit Qt. Net Profit

1 43,209

2 42,327

3 -36,225

4 -170,316

5 -514,402

6 -3,194

Net profit growth in Qt.6 is 99.4% compared to -202% in Qt5.

Revenue, Expenses & Profit Revenue, Expenses & Profit

Gross Revenue: Continuous growth

Operating Expenses: Reduction in Qt.6

0

1

2

3

4

5

6

-€600,000 €1,400,000 €3,400,000 €5,400,000

Net Profit Operating Expenses Net Revenue Gross Revenue

Qu

art

er

Other IncomeOther Income

Cargo Auto Rental

Quarter Profit/(Loss)

2 0

3 (16,211)

4 (12,459)

5 (8,707)

6 4,604

Quarter Profit

4 0

5 18,330

6 22,310

Quality and ReliabilityQuality and Reliability

Quarter Quality Reliability

0 68 92

1 69 94.3

2 66 94.6

3 76 96

4 67 91.4

5 82 96.8

6 77 95.6

Liquidity – Current RatioLiquidity – Current Ratio

0 1 2 3 4 5 60.0

0.5

1.0

1.5

2.0

Current Ratio

Quarter

Ratio

Current Assets: Current Liabilities.

Range: 1.38:1 – 1.89:1 - Good

Increased in Quarter 3 and 4 due to excess cash.

Liquidity- Cash BalanceLiquidity- Cash Balance

Always positive Cash Balance – No Bank Overdrafts.

Excess Cash used to repay Short and Long-Term Loans and purchase CDs.

0 1 2 3 4 5 6$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Quarter

Gearing – Debt: Equity Ratio

Gearing – Debt: Equity Ratio

0 1 2 3 4 5 6 $-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000 Gearing

Long-Term Debt

Equity

Quarter

Quarte

r

Debt:

Equity

Ratio

0 0.18:1

1 0.70:1

2 0.64:1

3 0.63:1

4 0.66:1

5 2.66:1

6 1.94:1

Short-Term PlansShort-Term Plans

Keep the fares at 40 cents. We are starting to pay dividends. Reduce both the Promotional and

Advertising Budget to $15000 and $12000. We are neither hiring Sales Personnel nor

Maintenance Director because we cannot afford the bonus rate and fears the possibility of resigning, if higher bonus rates are offered by competitors.

Long-Term PlansMain goal: Continue to grow

Long-Term PlansMain goal: Continue to grow

Satisfy shareholders and customers:

- Fares at NORMAL rate;

- Costs being low;

- Returning quality for money paid.

Share price increase:

- Increased competitiveness;

- Repayment of debt;

- Increased reliability.

Be less risk averse:

- Adopt new approaches to doing business and accept relevant suggestions.

ConclusionConclusion

Positive outlook on current strategy

More in depth insight of the industry

Willing to devote time and effort in order to

grow.

Thank youThank you

Questions?