Team name: Royal Raven.

Team code: 88
Round: 5

Rationale for decisions:

Key Strategy Decisions:

We, management of the Royal Raven airport continue to pursue the

strategy of growth in the 2021 and 2022 through such initiatives that would
enhance the airport run smoothly, with higher customer satisfaction,
improved airline service index and efficient operations. We strive to
strengthen the employee motivation and morale.

For the year 2020s actual results coming out as targeted, Royal Raven has
successfully been able to meet its targets and will try to do the same for the
current year.

Key financing Decisions:

The airport experienced a continued growth in flights of 38.7% which

resulted in a turnaround from the losses to a positive ROCE for the
previous year. ROCE stood at 4.7% and we have targeted it to be around
10% for the year.

This will also result in the positive cashflow of over 17 million, which is why
we have decided to pay off the long term debt by 15 million. This would
help us decrease the capital employed.
There will no more requirement for the overdraft facility for the year, which
is why we have reduced the required limit for the overdraft facility to 5
million only.

We are not paying out any dividends for the year since we wish to reduce
the long term debt and increase the shareholders wealth by reducing the
capital employed, decreasing the interest payments as well. This will result
in the appreciation of the value of investments of the shareholder in our
airport.

Key Infrastructure Decisions:

Our attention to passenger satisfaction, airline service index and brand

image affected our decisions on infrastructure in favor of combination of 10
lounges, 4 standard concessions, 2 luxury shops and 3 upmarket
concessions that improve the KPIs.

The rail link contributed 7,066 for the year 2020 and it is expected that the
rail links contribution will continue to increase and we have forecasted it to
be around 7,285.

We have upgraded the maintenance spend/ plant unit from 10,000 to

12,000.

Key Pricing Decisions:

In the long term car park the pricing strategy kept the same. To increase
efficiency and frequency of buses, previous year number of them was
raised to 30 and maintenance spend to 9. We have made no changes this
year. Short term car park price has not been changed as well.

To attract more customers to the airport we would drop our charges and
fees for runway and passenger services in 2018 by 3% for low cost and 5%
for full service.

To cope with increasing number of flights the freight handling space was
raised to 6 spaces. We have let it stay unchanged.
We would go for a high-risk concession charging system in 2020 as we
strongly believe in significant increase in customer flows. The shift to high
risk resulted in increased revenue and the same is expected for the current
year.

The Rail link standard fare would also be 8 and 20 for first class. The
service frequency would be every 30 minutes and 30% of the seats would
be reserved for first class and the rest for standard class, the service
standards would be premium. This mix was motivated by the fact that the
growth in budget airlines is forecast to be higher than full cost so these low
cost customers are the primary target.

Key Commercial Decisions:

The number of busses will stay at 30 for the year to ensure customer
satisfaction and providing of high quality service.

Maintaining the growth in flights and not many lose customers both
consumer advertising and PR and Lobbying Activities were decreased only
by 100.

Key Engineering Decisions:

With last years increase and forecasted increase in growth in flights the
Runway Maintenance was increased up to 2,250 to keep providing the high
quality service and uncompromising security.

Flow systems per million passengers increased to 12, in order to reduce

queues on security and efficiency.

Airfield plants maintained to 115 in 2021 This is aimed for reducing delays
for passengers and airlines, assisting in improving brand image and fetch
more traffic for us.

Key HR Decisions:

Due to volume of operations in all areas increase, and with an importance

of providing high service establishment staff numbers were increased to 78.
A further 7% increase in the annual pay for the staff would be announced in
2020 and this would help us to increase staff morale, and would in turn
increase the employee motivation index in subsequent years.

Customer service training of staff costs will be reduced to 3%. Employee

communication spend per employee per week will be decreased to 3.

To cope with increasing number of customers, number of security and

terminal staff were maintained at 400.

Staff at engineering and fire will remain the same at 150, we believe that
the number is sufficient to keep high level of service and maintain good
brand image and airline service index. We believe, keeping ourselves
ready for all mishaps along with all measures to stop any mishaps is very
important for the airport management.

Forecasted Growth and Other Forecasts:

Growth in Passenger Demand

2021 2022
Domestic full service 30% p.a years 30% p.a years
International full service 30% p.a years 30% p.a years
Domestic low cost 30% p.a years 30% p.a years
International low cost 30% p.a years 30% p.a years
Freight volume growth 30% p.a years 30% p.a years

We have continued the same growth factor that we used for the last year.
We are not making any major changes. One special reason is, that we
believe that the excel file is not functioning properly and any changes do
not change it positively. Therefore, we have let it be the same.