December 2009, Quarter 0/12

IndustryMasters Airport Management

Manage the business of an international airport. Cost advantages can be achieved with competitive investments.

Simulation Run Time
The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Topics Covered
Strategy, Service Industry, Competitive Advantages, HR Management, Asset Management, Finance, Issue/Buyback Shares.

Your Starting Position
The initial share capital is 500,000K$ and your available investment budget is 148,708K$. Your company has already invested into 3 product lines: Concessions, Landing Fees and Ground Handling. You are competing against 1 virtual competitors: The Hub Ltd

Airport

Landing Fees

Initial Investment: 175,000K$
Capacity: 2,400 / Month

Sales Price: 1,500$
Revenue: 3,600K$ / Month
Gross Margin: 44.0%
Staff: 189

Ground Handling

Initial Investment: 240,000K$
Capacity: 400,000 / Month

Sales Price: 20$
Revenue: 8,000K$ / Month
Gross Margin: 27.0%
Staff: 480

Concessions

Initial Investment: 15,000K$
Capacity: 80,000 / Month

Sales Price: 4.00$
Revenue: 320K$ / Month
Gross Margin: 50.0%
Staff: 16

Operations

Safety & Security	Customer Service	Human Resources
Staff Expenses +5.00% Operating Cost +3.00% Passengers +4.00%	Staff Expenses +4.00% Operating Cost +4.00% Passengers +6.00%	G&A Expenses +20.00% Productivity +10.00%

Systems
Flight Data Processing System	Passenger Transport System	Smart Cargo Operating System

Investment: 40,000K$ Construction Time 3 months	Investment: 70,000K$ Construction Time 9 months	Investment: 60,000K$ Construction Time 9 months
Staff Expenses -3.0% G&A Expenses -10.0%	Passengers +8.0%	Staff Expenses -3.0% Operating Cost -3.0%

Gate Management System	Smart Advertising System	Smart Parking Facility

Investment: 40,000K$ Construction Time 6 months	Investment: 25,000K$ Construction Time 3 months	Investment: 30,000K$ Construction Time 6 months
Operating Cost -8.0% Capacity +10.0%	Operating Cost -3.0% Concessions: Passengers +15.0%	Passengers +2.0% Operating Cost -5.0%