1. As a result of not wanting to compromise the quality

service, costs, and reputation of GoGo airlines, the company

strategically developed MegaSaver Airways to compete the

rising budget airlines occupying 40% of shares in the air travel

market.

A. In starting the new airline, strategic decision includes

addition of medium and long-haul flights whilst changing

ticket price to economical price while achieving the lowest

cost of production and reducing operational costs to improve

market positioning and staying in a competitive advantage. To

help reduce the operational costs in the starting phase,

MegaSaver should operate flights with same air fleet type and

should carry used/leased vehicles.

Tactical decisions include introduction of more economy

seats and removal of in-flight systems to lessen the cargo

load, which can also lessen fuel costs. From my previous

experience, operating on same fleet model can also reduce

maintenance and technical, training, and staff costs as they

are dependent on the license and training on carrier type.

Operational decisions include shorter layover/transit time in

different regions, a compromise of comfort involving number

of luggage checked in, seat classes, service and amenities

wherein these items can be purchased separately.

B. In a highly volatile environment, CEO will face unforeseen

events within operations leading to cost of resources,

fluctuations of profitability that often affects the

attractiveness in investments (Guerra et al., 2021). The

suggested solution includes strategic planning and control

and financial strategic decisions.

C. NPV can be used for long term financial decision since it

considers all the cash flows and the time value of money.

Furthermore, NPV is a logical approach to valuing productive

and economic asset (Atrill & McLaney, 2021),

What are the possible challenges of using NPV technique in

this industry?