Estonia Airs Big Buy Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Kalda Wright, vice president of operations at AS Estonian Air, faced a problem: how to address the Estonian Air projected growth of intra-European flight demand in the light of high fuel prices, competitive challenges, economic uncertainty and a net loss last year? If the assessment Kalda led to the expansion of the fleet Estonian Air, he had to decide which model aircraft will achieve operational efficiency, meet the requirements of the load factor and satisfaction of various other operating and financial performance. In order to fully understand the problem Kalda, in case the first is the reader an overview of the Estonian economy, the aviation industry, as well as three types of competitive aviation industry groups, the legacy carriers, low cost carriers and regional carriers. What follows is an overview of competitors Estonian Air and its potential for growth. The case provides detailed information about the advantages and disadvantages of Boeing 737 Jet, Bombardier Q400 turboprop and used Saab 340A turboprop. Finally, the case briefly internal analysis Estonian Air and growth strategy, with appropriate input from the conversations between Wright Kalda and Vice President of Finance and Administration, Andrus Aljas. Students are required to complete the analysis of operational factors such as power, fuel efficiency and utilization. If Estonian Air does decide to expand, it said that the airline will continue its past practice of leasing aircraft. The use of current financial statements and information provided in the case, students can also prepare the basic net present value (NPV) model and scenario analysis for each of the aircraft leasing alternatives. Finally, students have the opportunity to combine both qualitative and quantitative factors to support their analysis. "Hide
by Karen Popovich, D Lander, Robert Letovsky Source: North American Case Research Association (NACRA) 16 pages. Publication Date: December 1, 2011. Prod. #: NA0135-PDF-ENG