Silverjet

Executive Summary

Silverjet is a new British long-distance airline that operates between London (Luton) and New York (Newark), soon opening a route to Dubai (International). They aim to become the leading business-class-only operator by offering a unique customer service experience, including a private terminal, 30-minute check-in and luxurious service from booking to landing. Silverjet's strategy is to offer top quality service at low fares while keeping their costs down.

As the aviation industry is growing and becoming increasingly competitive, Silverjet finds it self competing with increasing number of direct and indirect competitors. Silverjet's policy of offering relative low cost pricing holds back competition in an industry that transports 127.4 million passengers each year from the UK alone. Nevertheless, the taxes and fuel prices are constantly growing and airlines face increasing pressures regarding technological innovation and environmental issues.

Besides the basic requirements of operating an airline, i.e. aircrafts and staff, Silverjet also has unique capabilities such as their own terminal and the interior of the planes. These, combined with the experienced management team, a strong brand image and excellent customer service, continue to guide Silverjet towards success. However, Silverjet is a small company; therefore they lack aircrafts to cover mechanical failures, are very dependant on fuel providers and make less revenue than larger airlines.

It can be recommended the company should be managed in the same way by developing gradually into new destinations whilst not taking too many risks. Due to growing public concern about carbon emissions, Silverjet should also continue to be involved in various environmental projects.

Contents

1. Silverjet Ð'- The Company

1.1. The Business

1.2. The competitive edge

1.3. Strategy

1.4. Mission statement

1.5. Corporate structure

1.6. Stakeholders

2. The Analysis of Aviation Industry

2.1. The industry and the market

2.2. The competitors

2.3. PESTEL

2.4. Five Forces

2.5. Combination of PESTEL and Five Forces

3. Resources, competences, capabilities Ð'- the Internal Environment

3.1. Threshold resources

3.1.1. tangible

3.1.2. intangible

3.2. Unique resources

3.3. Threshold competences

3.4. Core competences

4. SWOT Analysis of Silverjet

4.1. Strengths

4.2. Weaknesses

4.3. Opportunities

4.4. Threats

5. Recommendations (for the future, 5-10 years)

References

Appendices:

Ð'* Appendix 1 - The total UK air travel market by value and volume

Ð'* Appendix 2 - Percentage of UK residents who have travelled by air in the last 12 months

Ð'* Appendix 3 - UK residents' visits overseas by air, by country visited

Ð'* Appendix 4 - The comparison of Silverjet's prices with its competitors

Ð'* Appendix 5 - Combination of PESTEL and Five Forces analysis

1. Silverjet Ð'- The Company Overview

1.1. Silverjet Ð'- the business

Silverjet is a public airline based at London Luton airport, which has been established in 2004. Competing with a number of other large and small-size air carriers, Silverjet is one of the few companies that offer a business class only service. Silverjet is currently operating long haul flights between London (Luton) and New York (Newark) only, but expansion is being planned with a new service to Dubai already starting in November 2007 (Silverjet 2007b).

1.2. Mission Statement

Silverjet's vision has been to revolutionise air travel by creating a low fare business class only airline that provides a unique customer service experience. They aim to change the Ð''conventional thinking about the way customers experience long haul travel' (Silverjet 2007a: 3) Silverjet aspires to grow and restore its share price to the level when it was first launched on the stock market - they intend to become the leading operator in this market segment.

Overall the company endeavours to be seen as a model of how a business class only airline should operate.

1.3. Strategy Ð'- achieving the competitive edge

On its way to becoming the leading low-cost business-class-only operator, Silverjet aims to apply the following strategy: to offer and market low fares while keeping low cost-base, focus on specific routes and types of planes, offer a simple yet highly differentiated customer experience, make the product widely available through appropriate distribution and to make good use of the highly experienced management team (Silverjet 2007a). The Luton-based company is striving to attain competitive advantage by offering a distinctive set of high quality services that includes:

Ð'* Door-to-door service including valet parking, station pickup, chauffer drive and kerb-side drop-off

Ð'* Private terminals including a 30-minute check-in, dedicated security and a relaxing hassle-free environment in the Silver Lounge

Ð'* Top class service throughout the whole transaction, starting with the booking process all the way until reaching the destination; high level of personalisation

Ð'* Luxurious on-board service including internet access, entertainment consoles, 6-foot 3-inch reclining flat beds, dedicated bathrooms for ladies and restaurant-style catering