Aviation and Logistics

INTRODUCTION TO AVIATION (AVN 1105)

ASSESSMENT 1 - WRITTEN ASSESSMENT MARKING

RUBRIC
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To the Chairman of the Board

Tigerair Australia

Respect Sir,

This is an application letter for the replacement of the current CEO, Merren McArthur, of

the Tigerair Australia. The letter covers a sum of all the misjudgements made by the current

CEO of the airlines which have significantly contributed to the downfall of the airline’s

performance. I would like to draw your attention to a number of things that have gone wrong

under the supervision of Merren McArthur in current years. This letter also explains the

organisational issues that Tigerair Australia have been facing in the past few years. I would also

like to draw your attention to where the organisation should be positioned right now, why and

how.

According to the annual reports published by the ACA (Airline Customer Advocate) for

Australian airlines, Tigerair has been labelled as the worst performing airline in Australia for

four consecutive years. The report also states that compared to any other Australian carriers,

Tigerair Australia faced considerably more complaints made by customers. Furthermore, the

report also shows that the sheer number of customer complaints has increased at an exponential

rate compared to the previous years. In addition to receiving most complaints regarding

cancellations and delay of flights, customers have filed complaints about the unfair nature of the

terms and conditions, ground services provided to the customers, as well as, charges and fees that

are unexpected and sudden. According to the report, while there were no significant occurrences

which influenced the dissatisfaction levels of customers within the aviation sector, the number of

complaints made by customers increased by almost 11% compared to the previous years which is
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a significant reason for concern. According to the Head of Communications of Tigerair, a

majority of these complaints could be associated with the recent changes in the flight networks

and the infrastructure of the airports. The Head of Communications of Tigerair also expressed

that the airline has made considerable improvements to increase the level of satisfaction among

the customers. However, throughout the previous year, no significant improvements have been

noticed.

The highlights made by the CEO of Virgin Australia Group show that the overall revenue

of Tigerair Australia is increasing at an 8.2% year-on-year rate. However, the report also shows

that the result was achieved with the optimisation of the flight networks and the net reduction of

a total of two aircraft in the second half of 2018. In this context, the customer complaints are

even more concerning as the report directly opposes the statements made by the HOC of Tigerair

Australia which reflected that the changes in the flight networks were the root cause behind

customer dissatisfaction within the airline sector. In addition to that, the report also reflects

Tigerair Australia’s inability in terms of maintaining and managing two additional aircraft.

Compared to the other airlines in Australia, many customers reported Tigerair Australia to have

the worst ground services that are provided to the customers. For instance, the system of check-

ins and security checks are comparably much poor in comparison with the other airlines. In

addition to that, whereas Tigerair Australia is a low-cost airline offering low prices in exchange

for providing aviation services to the customers, the sudden and unexpected fees and charges

make it a hassle for customers which is significantly contributing to an increase of customer

dissatisfaction for the airline. To complicate matters even further, in 2018, one of Tigerair

Australia’s boeing 737s was suspended for a total of three weeks for maintenance problems

which immediately became known to the public causing existing customers to lose their
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confidence on the airline even further. In addition to that, in May, 2018, the Tigerair Australia

flights faced disruption of services due to pilots taking industrial action with the intent to resolve

a deadlock over a pay dispute with the company. According to the executive director of Austrlian

Federation of Air Pilots, although Tigerair Australia operates with the same fleets as the

counterpart airlines such as Jetstar, the employment conditions do not reflect the same. Rather, in

terms of both work-life balance and compensation, the current employment agreements are

below the average and expected industry standards. To make positive changes to reduce

customer dissatisfaction, the airline clearly needs to change its leadership and management

approach.

According to the annual reports for 2017-18, the Tigerair Australia is experiencing an

annual growth of 8.2% in terms of revenue per ASK. On the other hand, in terms of increment in

the number of passengers, the airline also experienced an annual growth of almost 3.4%. In terms

of yield, the organisation also experienced an annual growth of almost 8.5%. In addition to that,

the optimisation of the flight networks performed by the large airlines in Australia have shown

significant growth in the number of passengers and in the year-on-year revenue rates as well

which reflect that there are numerous opportunities for Tigerair Australia to grow the range of

their operations in the upcoming years. Furthermore, as of now, the fleet size of the organisation

is 15 which is comparably lower than its counterparts in the Australian aviation sector such as

Jetstar, Virgin and Qantas. It may be said in this context that the acquisition of more modern and

improved air fleets would allow the organisation in terms of improving the current scale of

services that are provided to the passengers. However, the all-inclusive EBIT declined by almost

11.9 mil Australian dollars in comparison with the earlier corresponding period. It may be said

that the results were influenced by the depreciation of fleets, as well as the operational costs that
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were associated with the transition of fleets owned by Tigerair Australia. With the inclusion of

new flight routes, it might be possible for Tigerair Australia to bring in more number of

passengers which would result in the growth of profitability and would contribute to the

increment of the yearly growth of 3.4% in terms of passengers. Being a low-cost service

provider, there are sufficient amount of reasons as to why passengers may want to prefer the

airline over its counterparts in Australia. With the improvement of the current services that are

provided to the customers, such as faster check-in times, more effective security checks and

customer services on the flight, more and more customers would switch to Tigerair Australia in

terms of both domestic and international travel.

Respected Chairman of the Board, I believe that these are ample reasons to suggest that

the leadership and management structure of Tigerair Australia requires a positive transition and

change. I feel that the current CEO, Merren McArthur has failed to competently carry out her

duties towards the organisation and has not made any significant contributions intended to

improve the current situation that is faced by Tigerair Australia. As a member of the

management board who has served the company for more than five years, I feel like I have the

needed experience and the knowhow to properly carry out all of the duties, obligations and

responsibilities associated with the role of the Chief Executive Officer. As a member of the

management board, I have experienced both the ups and downs of the company and I have

strived to make effective contributions to decision making to improve the current challenges and

hurdles faced by the company. As a successful and highly driven management member with 5+

years of experience in enhancing the overall productivity of the corporation and driving efficient

operations for the business, I possess a wide range of skills and expertise which are certain to

enable me to contribute towards the success of the company. I have achieved a series of
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corporate qualifications which, I believe, are ample for me to prove that I am eligible for the

position. To demonstrate my eligibility for the desired position, I am showcasing the following

achievements:

Throughout my career, I have been appointed with tasks to direct business operations,

customer service efforts that are industry-leading, as well as, administration of P&L. My

expertise lies in the areas of streamlining operations, optimising the performance of the staff

members, managing the performance of operations, conceptualising strategies to facilitate the

obtention of corporate objectives, administration of budget and leadership. I have also earned

many awards and formal commendation through my career from both colleagues and the

corporate management due to outstanding management efforts, commitment towards providing

unparalleled services towards customers and expertise of cross-industry practices and standards.

Hence, my proven dedication in terms of overseeing each and every aspect of the corporate

functions including staff direction, financial and operational, in accordance with my acute

expertise to actualise constant progress in terms of performance, productivity and efficiency

through efficient organisation, interpersonal skills and negotiation are certain to contribute in a

significant manner to the success of Tigerair Australia. Respected Chairman of the Board, I

thank you for your undivided attention to my proposition and taking the time out to consider my

application. I am eagerly looking forward to engage in further discussion with you.

Thanking you,

Sincerely,

__________________________
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References