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Chess plans to operate out of Dubai airport due to its advantages in fuel pricing, geography, and government support of trade and tourism. However, this does not provide the commitment that the Japanese culture requires and does not appear to be an efficient location based on the typical travel destinations of the Japanese. It is also uncertain how Chess plans to take advantage of the fuel prices if it’s operating out of Japan. Dubai is not a typical tourist destination; therefore, Chess will probably be fueling in Japan or one of its major destinations (i.e. United Kingdom, United States, and Asia). Chess plans to convert a standard 300 seat Boeing 747SP into one with a configuration of just 67 armchair seats with lounge areas and bars, a visual presentation area and cinema, a business center with state-of-the-art satellite communications, a private conference room, and a library. The configuration may be modified to meet the varying needs of the customers. The economic summary states that there are “fewer and fewer aircraft available for sale or lease”. This might cause delays in obtaining the aircraft. There are also reports that the wide-body planes are not lasting as long as they were supposed to. Further, the costs of the plane have increased substantially so Chess will have to start operations with only one plane. It will eventually have to purchase more to adequately provide service to numerous destinations and at various times. Due to the high costs of operating a wide-body plane, the substantial price for the plane, and the headquarters located in Dubai, the technical aspect of the operation does not seem to be cost effective or efficient. Chess will have difficulty marketing a foreign operation (i.e. headquartered in Dubai) to the Japanese. It will also be difficult to obtain sufficient sales to cover the high costs of the wide-body plane, and its luxurious amenities and overhead with only 67 seats available per flight.
Chess plans to operate out of Dubai airport due to its advantages in fuel pricing, geography, and government support of trade and tourism. However, this does not provide the commitment that the Japanese culture requires and does not appear to be an efficient location based on the typical travel destinations of the Japanese. It is also uncertain how Chess plans to take advantage of the fuel prices if it’s operating out of Japan. Dubai is not a typical tourist destination; therefore, Chess will probably be fueling in Japan or one of its major destinations (i.e. United Kingdom, United States, and Asia). Chess plans to convert a standard 300 seat Boeing 747SP into one with a configuration of just 67 armchair seats with lounge areas and bars, a visual presentation area and cinema, a business center with state-of-the-art satellite communications, a private conference room, and a library. The configuration may be modified to meet the varying needs of the customers. The economic summary states that there are “fewer and fewer aircraft available for sale or lease”. This might cause delays in obtaining the aircraft. There are also reports that the wide-body planes are not lasting as long as they were supposed to. Further, the costs of the plane have increased substantially so Chess will have to start operations with only one plane. It will eventually have to purchase more to adequately provide service to numerous destinations and at various times. Due to the high costs of operating a wide-body plane, the substantial price for the plane, and the headquarters located in Dubai, the technical aspect of the operation does not seem to be cost effective or efficient. Chess will have difficulty marketing a foreign operation (i.e. headquartered in Dubai) to the Japanese. It will also be difficult to obtain sufficient sales to cover the high costs of the wide-body plane, and its luxurious amenities and overhead with only 67 seats available per flight.