Airline

The Strategy Simulation

Airline is a strategy simulation where students take over and run a fledgling regional airline for up to twelve simulated quarters. Teams must decide how best to position their airline and develop an operational plan to support that strategy to maintain positive cash flow and make a profit for their company.

CLASSES

Business Strategy
Strategic Management

DIFFICULTY LEVEL

Intermediate

AUTHORS

Peggy Golden, Jerald Smith,
Mike Deighan

OBJECTIVES

Airline provides an environment for students to apply strategy concepts they encounter in your course and to integrate the knowledge gained in earlier business courses.

To that end, Airline is designed with the following learning goals for your students:

  • Planning & Analysis

    • Identify strategic options
    • Write a strategic plan
    • Monitor implementation of plan
    • Analyze competitive performance

  • Business Environment

    • Identify target segments in Airline
    • Evaluate new business opportunities
    • Understand risk mitigation
    • Respond to a changing environment

  • Marketing

    • Identify the 4Ps of marketing
    • Explain impact of discounts and promotion
    • Use appropriate mix for target markets
    • Adjust marketing to customer needs

  • Operations Management

    • Identify factors in efficient operation
    • Maximize aircraft reliability
    • Manage aircraft scheduling
    • Maintain profitable load factor

  • Corporate/Finance

    • Respond to ethical issues in business
    • Analyze financial performance
    • Project financial needs
    • Fund capital investment

  • Teamwork

    • Allocate responsibilities fairly
    • Complete assigned tasks on time
    • Communicate problems and plans
    • Collaborate with other team members

BUSINESS CASE

Students take over the management of a small, regional airline operating in a region that a larger carrier abandoned. Their company has a cyclical history of profitability, with generally small losses and profits. There are many opportunities for expanding their airline through additional planes and routes. A lot of variables exist as challenges for the teams including competition (from other teams in the class with their airlines), as well as economic, operational, and customer service issues.

 

Request Instructor Access to read the Airline business case and watch our case video!

12

Decision Periods (quarters)

6

Scenarios

18

Assignments

19

Incidents (mini-cases)

ASSESSMENT TOOLS

Combining our simulation Airline with our quizzes and assignments gives you the tools to assess your students’ understanding of the concepts of strategy. The following grading rubric works best to assess your students’ knowledge and understanding, providing a thorough assessment.

Assignments0%
Simulation Results0%
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