Flamingo Airlines reported an operating loss of USD 32,500,320 for FY 2022. This

Flamingo Airlines reported an operating loss of USD 32,500,320 for FY 2022. This was the airline’s third successive loss. The losses in FY 2020 and FY 2021 can arguably be blamed on the COVID-19 pandemic. During those years, passenger traffic fell by 53% and 38%, respectively, in terms of revenue-passenger-kilometers. However, global demand for air travel has generally recovered to almost pre-pandemic levels. In fact, passenger traffic carried by Flamingo Airlines in FY 2022 was 9% more than what the airline carried in FY 2019, the last full year before the pandemic struck. Moreover, passenger traffic for the airline increased by a whopping 34% during the first half of FY 2023, but this has done little to turn around the airline’s performance. Clearly, something drastic needs to be done. After much debate and discussion, the airline’s board finally approved an ambitious cost-containment program that aims to reduce overall unit costs (CASK) by 20%. All departments are expected to contribute to this effort.
The Task:
Flamingo Airlines has long prided itself on setting the industry standard for in-flight food and beverage in terms of passenger satisfaction and compliments. The airline has a full-meal, full-beverage policy on all flights within its network, short-haul or long-haul, domestic or international. Full-bar service with complimentary alcoholic beverages is also included in the airline’s generous food and beverage policy. You are tasked with evaluating what adjustments, if any, should be made to the airline’s food and beverage service.
Some issues you should consider include:
– Moving towards cheaper (less high-end) full meals
– Short-haul versus long-haul flight considerations
– Domestic and international flights
– Alcoholic beverage service
– Full-meal versus snack service
– Destination (regional) issues
The Deliverable:
You will make recommendations on what can and should be done with the airline’s generous food and beverage service, as well as present a well-thought-out estimate of the potential cost savings from your plan, assuming that all your team’s recommendations are implemented. Please also discuss how your action plan might impact passenger satisfaction and how this might affect revenues.
I am going to add the previous case study as a separate file that I have done for this class with the comments of the professor at the end in red for you to better understand what their demands are.