The Case of Planet Air Travel

1910 Words8 Pages
5.4 Actual assignment Riding the Waves of Change in the Context of the Global Financial Crisis The Case of Planet Air Travel Planet Air Travel is a UK-based airline that used to specialise in long haul flights to a wide range of destinations across the world. Originally a publicly-owned state enterprise, Planet Air Travel (PAT) was privatised and floated on the stock market five years ago. This event drew a lot of attention from large companies and individuals alike who rushed to buy shares. Other important changes also happened in the wake of PAT’s privatisation and floatation, including a revision of the terms and conditions of employment for all staff. The salaries of pilots and cabin crew were substantially increased – where they benefited from a hefty 30% rise in pay and could respectively earn up to £140 000 and £55 000 per annum. As for ground crew and other support and frontline staff, their terms and conditions were unrivalled across the industry as they were paid 25% more than their counterparts in other airlines alongside a reduction in working hours. An Alarming Financial Situation However, this rosy picture was marred by the recent global financial crisis, which inevitably had adverse effects on all airline operators, with a sharp fall in demand for first and business class travel. Last financial year, the airline reported a £30 million loss. The loss for the last three months of the current year was over £10 million and the figures for the rest of the year look like being just as bad, with losses running at over £50 000 a day. Several other factors served to bring about this alarming situation. These include an escalation in fuel prices, a substantial rise in airport tax, and a general increase in the prices of commodities related to passenger travel (such as food and beverages, toiletries and other passenger comfort items) –

More about The Case of Planet Air Travel

Open Document