|University||National University of Singapore (NUS)|
|Subject||stragetic business leader|
ACCA SBL stragetic business leader Case Study, NUS, Singapore. Corjetz is a low-cost regional airline business. It was established 20 years ago in Corland,
Corjetz is a low-cost regional airline business. It was established 20 years ago in Corland, a country located in the continent of Hundria. Over the years, it has positioned itself as one of the world’s leading low-cost airlines and is currently the second-largest low-cost airline business operating in Hundria (in terms of passenger numbers). Corjetz currently operates nearly 1,000 routes (destinations) in over 30 countries across Hundria. Its head office is based at Near City airport, located in the south of Corland.
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Andria is a politically stable and economically developed continent of the world. Most of the countries in Hundria form a trading bloc that facilitates free trade and the free movement of people within it. Each country in Hundria uses its own currency. Corland’s currency is the $. Corjetz operates a ‘point-to-point’ service, meaning that it operates its flights directly between destinations. This means that its passengers do not have to travel to or change flights at a ‘hub’ airport to reach their destination, which helps Corjetz to reduce its operating costs.
It also keeps costs low through its ‘no-frills’ approach to flight delivery. This approach means that in-flight meals are not provided (unless paid for separately) and includes the automation of a wide range of its processes, including bookings, flight documentation, baggage drop and flight check-in.
Additionally, it operates a profitable and popular portfolio of routes between over 130 airports
2. Airline industry information
The airline industry encompasses a wide range of businesses called airlines which offer an air transport service to customers. Normally referred to as commercial airlines, these businesses offer scheduled commercial flights which carry both human passengers and cargo, and in most cases are carried out using jet aircrafts. Commercial flights are those which transport passengers from one destination to another with a pre-booked ticket. Non-commercial flights are either operated privately or by the military.
The airline industry forms just one sector of the wider aviation industry, which also includes all other aviation-related businesses, such as jet engine suppliers, aircraft manufacturers and aerospace companies. The airline industry directly and indirectly supports global trade, tourism, and economic growth. Therefore, it has had a major influence on globalisation in many other industries.
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Risk management and key risks
Corjetz has a detailed risk register, and a robust enterprise risk management (ERM) framework is in place. The board takes responsibility for determining the nature and extent of the risks it is willing to take to achieve its strategic objectives. It is also responsible for maintaining and monitoring the systems of internal control and risk management. Risk management activities
are co-ordinated by the risk and assurance team, led by a risk manager who reports to both the chief financial officer, and to the chair of the audit committee. Corjetz’s key risks include:
- Safety and security of customers and staff. Delivering safe and secure operations which meet the needs and expectations of customers and staff is critical to the business.
- The growing impact of climate change and increasing expectations from customers, governments, regulators, and wider society for a greater focus on the environment and sustainability activities.
- Macro-economic and geopolitical events such as general economic trends, foreign exchange rates and volatile fuel prices which all impact financial performance.
- The availability, security and performance of its website and its critical business operating systems
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