Air Transport Economic - Coursework Example

There are certain factors influencing and perhaps hindering the continued growth of this air transport company. These factors include negligence of the procedural strategies in operating the daily functions. They are flexible factors that can easily be changed to turn the dwindling situation into a benefit. It can be worked out and through critical analysis of the entire organization. If the further studies discover that the expenditure is more than the income, the resultant effect is operational losses.

The losses resulting from the summary of the present events at the Airlongways Bahrain could have to be closely associated with inadequate management, which could have led to poor decision-making and of course failure to achieve the strategic objectives. The major target of this research is to formulate more flexible and sustainable methods of ensuring that Airlongways Bahrain earns profits every year. Of course, every profit making organization aims at the achievement of high levels of profitability in whatever business they are engaged in and to maintain the standard of profit making.

We therefore undertake to do an assessment of the challenges, which Airlongways Bahrain as a firm is facing and attempt to develop better methods of ensuring that we defeat the challenges in such a way that we facilitate the growth of this firm towards profit making. The way we conclude and recommend the operational methods of the financial attributes of the company from this study should catalyze the processes of Airlongways Bahrain daily operation through which it makes profits. This is when Airlongways Bahrain can remain relevant in the market and maintain the operation of its present routes, apart from adding ones that are more new.

Objectives of the study The objectives of the study of Airlongways Bahrain financials are as listed below: a) To conduct an analysis of the current position of Airlongways Bahrain in terms of profitability and cash flow. b) To transform the operational model and implement changes that will raise the profitability of Airlongways Bahrain. c) To weigh options of routes and decide on the most profitable destinations and the number of trips per route d) To provide a cost cutting strategy for Airlongways Bahrain through reduced operational expenses. e) To formulate possible advisory recommendations this can facilitate the financial stability of Airlongways Bahrain.

Potential Challenges Company The possible causes of failures of Airlongways Bahrain to attain its desired levels of profitability and cash flow is attributed too much commitment to serve a large number of routes, over commitment of capital, poor flexibility in the decision making as a result of bureaucratic processes and wrong combination of leadership. Another critical reason is the failure to get a sustainable and long-term competitive advantage over the air transport companies that compete with Airlongways Bahrain, as well as the inability of the management to improve the levels of revenue growth from diversified sources of income (Silke, 2009).

Thirdly, Airlongways Bahrain is not consistent in its operation of certain routes, which remain unavailable or unused for long periods (Ramon, 2009). This reduces its reliability as a potential air transport com