Estonian Air - Final Essay

3575 WordsSep 10, 201315 Pages
Case Study: “Estonian Air’s Big Buy” Case Study Information: Karen Popovich, Diane Lander, and Robert Letovsky (2011). Estonian Air’s Big Buy. Case Research Journal, 31(1), Pages 67-82. Executive Summary Estonian Air is a regional airline carrier headquartered in Estonia in the Baltic region of Europe. The airline’s hub of operations is located in Estonia’s capital city of Tallinn at Tallinn Airport. This airport is the largest in the country. With the state government of Estonia owning a large equity percentage of the airline, Estonian Air is the national airline of the Country of Estonia. The Company currently operates a fleet of four aircraft providing flights to sixteen destinations throughout Europe. Within the…show more content…
These examinations will be presented to the Board of Directors during their next meeting. Mr. Aljas has informed Mr. Kalda of the underlying problem that the Board of Directors is divided on the growth projections for the airline. There are several members who believe the growth projections in the internal analysis are too high and that there may be certain economic headwinds nearby. If these projections are accurate, it would mean an overall economic recession. Expanding the fleet at the time of a major economic contraction could have decidedly negative consequences for Estonian Air. As such, this decision is of extreme importance to the company and will require elite deliberation. Scope of Work ART Consulting Group has been retained by Estonian Air to assist in the decision making process related to the possibility of the company’s fleet expansion. Our main focus will be assisting Mr. Aljas and Mr. Kalda in the formulation of decision-making model, as well as providing recommendations on facilitating healthy discussion leading to the adoption of an effective decision. Mr. Aljas affirmed that due to different opinions amongst the Board members, the management team should strive to ensure that judgment errors, bias ideas, and negative group dynamics do not negatively affect Estonian Air’s ability to make the best decision possible. In addition, the

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