Executive Summary

The Airline market has increasingly become competitive particularly with the speedy increase in low cost airlines, revival of airlines that were previously kicked out of the market and the growth of full service carriers. Meanwhile, Pier7 airline is aimed at focusing adequately on the premium segment of the aviation market to strengthen its business. Our marketing tactics will be predominantly focused on the sales promotions instead of brand building. With these adverse odds, our sales efforts which are intensifying we believe could generate exceptional yields which will in turn be sufficient in a competitive cost structure within the Airline industry. Our motto is to fly in high service standards because of the superb variant efforts of the Pier7 team. SIM-Pier7 Aviation team aims at providing recurrent and initial type of training to Full flight stimulators operators and high level training for civil and commercial pilots. With plans of being an independent player in the aviation industry, SIM-Pier7 has received subsequent permission and certifications from numerous aviation regulation authorities (South Africa, Europe, China, India, Russia and United Arab Emirates. To start the consolidation process of our group, we aim at implementing high level strategies of pilot training through an M&A consolidation process that has matured fast in western countries and still growing fast in Asian countries.

Development strategies for the Pier7 Group will be executed as discussed below;

• An increase in group revenue as well as profitability through acquisition of current refinancing and new stimulators from its existing FFS in Paris
• Debut of a pilot training center at Xi’an but working with particular Chinese partners
• Making the group the very first independent center that offers pilot training in China with an aim of making a way for future SIM project in Asia, China as well as Africa with the same partnership
• In the same context, SIM-Pier7 will need a funding amount up to USD 25 million in a short term period basing on how projects should be implemented.

Vision

A chance to make an impact in Airline industry through embarking on Full Flight Stimulators linking to the exponential evolution of Cadet pilots that is increasing universally.

Mission

• To enhance the group’s image through provision of a quantitative training in a continuous process
• Increase provision of exceptional training in FFS (Full Flight Stimulators for all our future pilots particularly in combating the skills and knowledge in aviation

Objectives

• To create a small though profitable aviation network
• To win a larger percentage of aviation customers
• Have a relentless focus on costs
• Keeping aviation procedures and practices simple
• Bridging the gap in finances
• Create a stronger shareholder support with an understanding management

Industry Analysis and trends

The outlook demand for airline operators in the Africa, Asian and Western markets continues to grow strong with fuelling from the burgeoning middle class as well as an increase in intra-regional and universal trade. Basing on the forecasts of trade flows, GDP and other factors in the aviation industry, there is an anticipating that the demand for flights will double with the coming years. This opportunity brings a sizeable chance for all airlines within the region to determine their nature of profit. This scenario means that the aviation market and environment is challenging. For us success in a challenging environment would mean coming up with a different approach which we believe can be earned through developing a leading cist position and also creation of an exceptional value proposition to consumers. In this market, we shall perform both.

Year	units	ASP	flights	% increase in profit
2012	1330	55000	9500	30%
2013	1760	60000	12500	40%
2014	2300	63000	14500	50%
2015	3000	66000	17500	60%

 

Competitive analysis

There are more than 30 companies in the Asian and Western markets that have been developed to address the debut of low cost airlines. Competition within the industry revolves around Multibillion dollar corporations to startup businesses that also aim at taking over Asian, American and African markets. The management at PIER7 believes that the existing companies do not pose any threat to internal business operation.

Marketing strategy

With an increase in the demand for pilots in the next 15 years, our marketing strategy we believe is what will sell us out to customers. Our flights will mainly address the aspect of price, innovation, quality and service. In order to improve our connections with our end users, we shall keep improving on our innovation strategies on every plane annually. Our prices will range from $10000 for low cost flights to $ 50000 for expensive trips. To begin our operations, we will require about 15% of the total amount to make a single purchase of a plane. With the knowledge of the needs of end users, Pier 7 marketing department shall be reinforced through monthly salaries and tips for high performance.

The graph below shows the projected growth for pilots in the next decade and a half