Critique in Info Systems & Info Technology
Task
Journal Entry. The Journal function in Interact2 must be used. External journal sites are not permitted. If your country geo-blocks Interact2 website or your circumstance prevents you from accessing the Internet (eg. due to a disability or if you are in a correctional centre), please contact your lecturer immediately. If it is an office/organisation firewall preventing access, you must find an alternative Internet access point to complete this task.
Write a business report based on the following:
Two airlines have decided to merge their business.
Wombat Airlines is a full service airline flying to 23 international destinations and 40 domestic locations. It prides itself for on-time flights, excellent service and a fleet of new Skycraft aircraft (less than 6 years old) - each capable of carrying 300 passengers. 70% of its sales come through tour operators and travel agents.
Koala Airlines is a low-cost carrier flying to 20 international destinations and 35 domestic cities. Its strengths include low priced flights and on time service. It takes advantage of late hour departures and arrivals (between 12 midnight and 6am). Its online booking system is excellent. Its fleet consist of a fleet of Skycraft aircraft each capable of carrying 300 passengers.
Senior management has finalised on the following decisions:
1. The combined company Wombat-Koala Airlines will retain all existing all staff, aircraft type, flight schedules and destinations. It has been determined that current scheduling does not conflict. Wombat's aging system is to be merged into the Koala advanced system.
2. Wombat-Koala will begin service as a premium based low-cost carrier (low cost fare but passenger can pay for everything else: seating, baggage, drinks, meals, inflight entertainment, WiFi in the air and even carry-on luggage to first-to-board previlege). It will move to low-cost carrier terminals where available.
3. Travel bookings is available primarily online with a service charge of 15% if booked through an agent, third party website operator (eg. popular airline ticket site) or tour operator. It will become a very hi-tech connected company with 24 hour, 7 day telephone and web support but no face-to-face customer support.
Write a business report outlining the above case, stating assumptions you make at the beginning of your report. Provide critique into the management decisions substantiating with reference to literature. In your report, make the difference between Information Systems (IS) and Information Technology (IT) issues and how it will affect customer choice, continued patronage, brand loyalty, etc. Suggest how to attract new customers (from competitors) and any other new business opportunities that may arise with such a set up (eg. Premium Lounge services, Limo Pickup from Home/Office, etc.). All these should be substantiated with references to IS and IT literature.