Virgin and Korean Air

1) Read the articles on Virgin and Korean Air and answer these questions true or false, correct the false statements to check you could underestand both articles.

a) Virgin Airlines is the only airline trying to attract business passengers. FALSE
b) The business service planned by Virgin will fly to European cities. FALSE c) There is an Open Skies agreement between Korea and the USA. TRUE d) Business-class passengers demand low prices and high frequency. TRUE e) Virgin will have to buy new aircrafts. TRUE f) Korean Airlines wants to fly to South East Asia. TRUE g) Korean Airlines is not interested in the international routes. FALSE h) The flights to China do not represent a high revenue. FALSE i) Orient Thai Airlines is a competitor of Korean Airlines. TRUE j) The main competitors of Korean Airlines are Lufthansa and Air France-KLM. FALSE

2) Case Study Candidate`s name: Virgin airlines: Sales executive: Strengths: is able to organize, reorganize and/or manage any domestic or international business unit. Expert ay solving problems related to the development, management and servicing of key accounts, maintenance of existing business, and recapturing lost costumers.

Senior executive: Strengths: Knowledgeable in all modes of international and domestic transport, the candidate has a thorough knowledge of customs brokerage services, and has overseen Operations and Logistics Development, Sales and Marketing, Budgeting, Forecasting, Personnel Management and Accounting. Korean airlines: Senior executive: this individual has a extensive experience in information systems management, accounting, human resources, facilities management and sales. As effective director has strong abilities for the direction. Senior executive/ managing director: this individual offers a national and international background in management of logistical operations, as well as manufacturing and production. 3) Write down a dialogue where these executives will negotiate the agreement Nicole: good morning, my name is Nicole acua chairwoman of virgin atlantic and my partner is constanza ayares . Hctor: good morning, my name es hctor astorga chairman of korean airlines. Constanza: we organized this meeting for negotiate some points abour join venture. nicole: the first point of this chart is lenght of agreement. How long do you want the venture? Constanza: we think its better to do it in 2 years. Hctor: we want one year for put to test, if at the end of the year we both have profits then we will negotiate again. Nicole: In one year we would not be able to perceive the real situation in the market. Hctor: ok, i agree Nicole: Now the second point is range of destinations. Hctor: What do you think about? Nicole: The rnage of destination which Virgin Air are proposing for some countries in Europe (example: Feance, UK, Germany), cities of USA, Souh-East Asia and Chnese.

Hector:Ok, we are agree. Constanza: Now lets talk about advertising budget. In this point our company thinks we sould invest ten millins dollars. Hector: What its includes? Nicole: this includes: puclycity on television and in the business magazines. Hector: We agree with the budget but we nust ficus in the 50 porcent for the business magazines Constanza: Ok! The last point is business- class passengers insurance. Hctor: we think its not neccesary an insurance Nicole: ok. We accept the join venture.