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Budgeting For A New Route Launch

Budgeting For A New Route Launch


To set the stage, read the following articles and consult the Green Airport 

· The $$: Air Service Development Fund (Warwick Beacon),127652 

· The Challenge: How to… market new routes as an airline (Routes Online) 

· (Optional) Blog Articles for Marketing Ideas…Aviation Marketing Insights (Simplifying) 


You are hired as a marketing intern at Green Airport. It’s your first week on the job and your boss just walked into your office announcing the recipients of the Air Service Development Fund (Warwick Beacon). – a $3.375 million dollar incentive program to promote 16 new routes. The challenge is “airlines open new routes every day but don’t always market them effectively” (Routes Online, 2017, .para 2). Your boss has asked you to put your marketing knowledge to the test and develop a budget to assist one of the four airlines with a launch campaign to promote one of their new domestic air travel routes. The commercial route will transport both passengers and cargo.

Your budget to promote this launch was $200,000 (which included a 10% contingency for unexpected costs). As you develop the breakdown of estimated expenses, be sure to consider the role of public relations and aviation interest groups in your launch strategy. Thankfully, your superior management skills resulted in actual expenses of $5,000 under budget. Additionally, your boss said the anticipated revenue forecast after six months was $1,000,000. According to IATA. (2018) , on average, the cargo business generates 9% of airline revenues, representing more than double the revenues from the first class segment.

Six Months Later

Your boss asked for a summary of the launch event. Document the estimated and actual costs using the Budget Spreadsheet (xlsx)* Listed in the attachment section, and provide a rationale for the differences between the estimated and actual expenses. In a two-page business memo, answer the following question: Was the new route launch campaign a success? by referencing components within the budget spreadsheet (include as an attachment).

*Note: the template content (campaign tactics, income sources, and figures) are examples and should be updated during the planning process to align with your campaign strategy.

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