The Business Plan Of High Quality Flight Between Guangzhou And Beijing

In recent years, round-trip route between Guangzhou and Beijing develop rapidly. During2005to2010, the quantity of the route line’s passenger has reached over15million, and theaverage annual growth rate is5.76%. The quantity of First Class and Business Classpassenger has reached907,500, and the average annual growth rate is30%. At the same time,the airline has increased the capacity of input in this route due to the rapid development. Itresults in that the capacity supply is much greater than the tourist demand. In this case, ChinaSouthern Airlines has to increase the market share of high-end tourists, in order to improvethe quality of the route and enhance Southern high-end brand image.First of all, the business plan of platinum flight projects between Beijing and Guangzhouuse the PEST model and the Five Forces Model to analysis the macro and industryenvironment and the high-end passenger’s behavior characteristics. And then, the businessplan analysis the strengths and weaknesses of competitors and China Southern Airlines,considering various impact factors on the project. Finally, the business plan makes thedecision of marketing strategy of the project base on the analysis above.This project is expected to operate10years, and the initial investment is about￥200million mainly for the aircraft modification and advertising costs. After the project Operate,the annual operating revenue is￥175.8million, and the annual operating costs is about￥126.1million. The payback period of the project is3years and2months. The net presentvalue is￥113.3million. The project internal return rate is25.08%,much higher than theinternal cost of China Southern Airlines (10%). Through the sensitivity analysis, the projectcan bear the sales revenue declined8percent, and in that case the project’s internal return rateis the same as the internal cost of China Southern Airlines. So the risk of the project ismoderate.Considering the business operations and financial analysis of the project, the projectis feasible conclusion.