Recommendation: Gamma Airlines should focus efforts on increasing the revenues by differentiating itself as a business class operator, marketing for higher load factor and potentially operating new routes. This is because:
Reason #1: We were the preferred business class operator and could offer features such as priority check-ins, in-flight WiFi, discounted cab rides to business districts or even better meals to differentiate from the competitors and train service
Reason #2: With an increased load factor, revenue would increase and costs per passenger would fall
Reason #3: New routes would help in diversifying our revenue source and the train will potentially continue to cannibalize our revenues as people prefer it (especially, the business travellers)
Risks:
Customers travelling from STR - BER may only prefer to travel by train in the future. New offerings and marketing may create a high financial burden on profits.
Next steps:
Perform an analysis of business customers to understand preferences and willingness to accept the offerings. Evaluate revenue potential of other new routes.