Koala Airlines Expensive


Write a business report outlining the above case, stating assumptions you make at the beginning of your report. Provide critique into the management decisions substantiating with reference to literature. In your report, make the difference between Information Systems (IS) and Information Technology (IT) issues and how it will affect customer choice, continued patronage, brand loyalty, etc. Suggest how to attract new customers (from competitors) and any other new business opportunities that may arise with such a set up (eg. Premium Lounge services, Limo Pickup from Home/Office, etc.). All these should be substantiated with references to IS and IT literature.


Koala Airlines is known for its less expensive air flights and has a market of flights to twenty international destinations and other flights to 35 domestic destinations. It is an owner of a good track record which includes good service, on-time flights and low airfares. It has a time slot of odd hours between 12 am to 6 am in the midnight and it takes good advantage of the following hours. The company is going merge itself with a famous airline named Wombat airlines. The merger which has been decided by the senior level management is being presented through this report. The merger would be successful on papers but there are many changes which are going to apply after the merger. The report concentrates on the changes, majorly the introduction of the role of information system and information technology in the area of customer support and service. (Business Information Systems, 2016)The changes which would be challenging for both, customers and employees of the merger airlines and it require a quite quality time for the participants to adapt to these new changes. The report investigates and reviews on the introduction of new methods in the industry and its impact on the customer satisfaction. The best nature of customer service is going to be on the toss. 


Koala-Wombat Merger

The Wombat airlines are dependent on traditional methods of business on the basis of the statistics shown as seventy percent of the business of Wombat is based on the travel agents and tour operators. The Wombat airline though is known for its good performance based on good service and timely flight service, the market has become intolerant to the business strategies used by Wombat airlines. It needs to change the basic method of cultivating a business in the aviation market.(Butt, 2015) When one talks about the merger, the other ally is also something to discuss about. Koala Airlines, on the other hand, are well known for its low fare flights. They provide flight service on odd hours and make the fortune out of it. The Koala Airlines are much into the information technology related business techniques. Therefore, it has a strong spine of online booking which with a fleet of Skycraft.(Chen, Investigating structural relationships between service quality, perceived value, satisfaction, and behavioral intentions for air passengers: Evidence from Taiwan, 2008) Thus, the method of an excellent online booking though new for Wombat, would be helpful for it to sustain its customers in the competitive arena. Further, the bigger airlines will attract more customers and have more customers. Some of the decisions of the senior management about the coalition of the Airlines include that all staffs of both the airlines would be retained. The old system of Wombat is to get merged with the Koala Airlines advanced system. So, it means that the employees of Wombat would have to learn and take care of the new system which is to be used by the merger airlines (Chen, 2008).

Introduction to IS and IT and their differences

Information technology is the new way of being smart and outstanding in business. Technically, information technology is the method to store, retrieve and modify data with the help of computers in terms of the enterprise or a business. Information technology is recognized as a part of information and communication technology.(Chen & Chang, Airline brand equity, brand preference, and purchase intentions—The moderating effects of switching costs, 2008) An information system can be defined as a body of people and computers which sit to process and interpret data. It is a field of information technology and communication which can be used to improve the chains and networks of business and enhance the opportunities of business. It helps to produce, acquire and enhance the services related to business. It plays a major role in the economical development of a business through strategic procurement, global business alliances, and global outsourcing.(Ghee, 2013) A business becomes global with the help of information systems. So, both of the techniques are needed for the enhancement of businesses in the coming new age of technological advancements. There may be certain issues with the employees of adjusting with the new technology but it can be overcome through proper training.  

The innovation in business is the key to success in business in this age of digitalization. The technology used by the business has shown its capabilities and proved that it can dramatically touch the lives of people.(Ingram & Media, 2016) Social networking, cloud computing and digital communication are few examples on the changing arena of business. Moreover, business needs to have accurate planning, sales which are global in nature, world-class marketing, real-time reports, long term goals and high customer satisfaction which comes through 24*7 customer services. The customer satisfaction is the most critical factor in terms of business development in any field and when talking about the aviation industry, which has already taken a form of hospitality sector as well, customer satisfaction has been very much essential for growth. The aviation industry is one of the most competitive businesses nowadays and to be in the elite, one needs to introduce and innovate in a consistent manner. Information technology and information system will work great benefits for the business.(Ingram & Media, 2016)

While concentrating on information technology and information system, one needs to have a clearer understanding on both aspects. Both techniques are different and they are different in the following manner: –

An information system is a big umbrella which consists of people, computers and information. It is used to store, manipulate, and retrieve data information. While information technology deals with the technology which is being used in the systems. So it can be considered as a part of information systems. (NAP, 2016)

Information system acts like a bridge for computer science technology and business while information technology helps in managing and administrating technology used in business and optimizing its utilization in business. (Ingram & Media, 2016)

Information technology consists of software, database, networks and hardware while information system is not only computer-based information but any piece of information. It includes technological and non-technological systems as well. 

The information system also includes analysis of the information, security, and auditing while information technology includes database administration, network administration, software development, and business intelligence.

Thus, there are many differences between information technology and information systems (Kollau, 2013).

Impact of IT and IS on customer service

Over the past few years, there is strong evolution in the field of information technology having a significant impact on the management. A huge amount is spent by the companies for the development of the information technologies, leading to the innovation of new forms of interaction. It has supported the relations of the suppliers and the customers. Managers have also tried to build tighter relationships with their customers and suppliers through electronic commerce. They have now the freedom of choices to interact with the brands, companies and other form of customers and suppliers(Laverty, 2016).

There are many services which have made the relationships of the customers and suppliers closer. The service of Wi-fi installation has accelerated so that a large number of customers should bring their one or more digital devices. This campaign has created a momentum in the aviation industry through focusing on digital developments (Ivory Research, 2016). Before making discussion on how new technologies has improved, the major focus was made on the onboard customer’s experiences regarding the major initiatives and innovations made by the aviation industry. The first impact was made by the today’s airline companies were on the tech-toting passengers. Airlines businesses have responded to the large number of passengers those who carry their notebooks, Smartphones, tablets, notebooks and e-readers by equipping the seats providing the facility of USB ports and power. Presently, many interior suppliers and number of airlines are looking for the ways of integrating the passenger’s devices in the design of their seats(Lewis, Semeijn, & Talalayevsky, 1998).

Another form of technology developed by the aviation industry is to make online tracking and tracing of packages. These packages are shipped through parcels delivered by different courier companies. With the aim of making the process of baggage more transparent, some advanced scanner machines are installed which provides the customers with complete peace of mind. These scanners make real-time assessments using their domestic system. The customers can track any information about their luggage from their Smartphones. In the past years, some of the airline industries have equipped their pursuers with tablets (Mocherman, 2012). This will provide evident information to the cabin crew about the passengers that which passenger have taken the trip of airlines or what are the issues that has been faced by the customers in their previous travels. One of the largest initiatives was taken by the British Airways in which 2,000 senior cabin crews were connected through a short-haul network. Some of the enhanced services platforms were featured through iPad. This allows the cabin crews to store some information and receive the relevant information about the passengers at the real time. The main purpose of the airline companies is to serve their passengers with more tailored in-flight services.(Mocherman, 2012) For tracking the actions of the caretakers, delivery labs were set who analyses the way that how the members of the airline business are communicating with their customers. Through all such actions of the aviation industry, the connectivity with a large number of customers can be made. The majority of the fleets are equipping such methods to enhance their operations(Peterson, 2015).


Technology has evolved the sector of aviation in past few years. No other technological advancements have been used or appreciated more than the electronic method of tracking documents. Already, it has been witnessed that there is a race between several aviation companies to acquire latest developments, so that they do not stay behind in the market. The gradual development of Wombat-Koala airlines by adapting the new technological methods and ideas such as information system and information technology will help the coalition to sustain its market in the long run. The customer satisfaction will be increased simultaneously through the help of the introduction of new methods, 24*7 customer support, enhanced online support etc. But it has been seen that there are continuous changes in technology. So, it can be said that big changes are yet to come in the merger of Wombat-Koala airlines in the near future.


Big data which is the latest innovation in the field of processing data can be used in the merger airlines for the analysis of the information in the business. The big data can be used in the situations where data is involved(Bloch & Segev, 1997). The programs from the Airlines such as customer loyalty programs, business development and dynamic pricing can use big data as an analytic tool. The involvement of social media can work wonders in customer relationship management for Wombat-Koala Airlines. Social media campaigns on facebook and twitter can help Airlines boost their business in this phase of budding coalition. Moreover, the enhancement of digital data can increase the flexibility and transparency of data in Wombat-Koala Airlines. These technologies are soon going to play a vital role in the formation of a new aviation industry and the airlines which are not going to adapt the technology would be on the losing side. 


Bloch, M., & Segev, A. (1997). The impact of electronic commerce on the travel industry an analysis methodology and case study. Proceedings of the Thirtieth Hawaii International Conference on System Sciences. 04, pp. 48-58. IEEE.

Business Information Systems. (2016). Retrieved May 28, 2016, from aut: http://www.aut.ac.nz/study-at-aut/study-areas/business/research/research-areas/business-information-systems

Butt, A. A. (2015, May 14). The Role of Information Technology in Business Success. Retrieved May 28, 2016, from linkedin: https://www.linkedin.com/pulse/role-information-technology-business-success-abid-afzal-butt

Chen, C.-F. (2008). Investigating structural relationships between service quality, perceived value, satisfaction, and behavioral intentions for air passengers: Evidence from Taiwan. Transportation Research Part A: Policy and Practice, 42(04), 709-717.

Chen, C.-F., & Chang, Y.-Y. (2008). Airline brand equity, brand preference, and purchase intentions—The moderating effects of switching costs. Journal of Air Transport Management, 14(01), 40-42.

Florida Tech Online. (2016). Information Systems vs. Information Technology. Retrieved May 28, 2016, from http://www.floridatechonline.com/resources/information-technology/information-systems-vs-information-technology/

Ghee, R. (2013, november 2013). How can airlines and airports improve customer service during disruption? Retrieved May 28, 2016, from futuretravelexperience: http://www.futuretravelexperience.com/2013/11/how-can-airlines-airports-improve-customer-service-disruption/

Ingram, D., & Media, D. (2016). Information Technology for Business Success. Retrieved May 28, 2016, from smallbusiness: http://smallbusiness.chron.com/information-technology-business-success-4019.html

Ivory Research. (2016). IT and Internet’s Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group. Retrieved may 28, 2016, from http://www.ivoryresearch.com/samples/tourism-essay-example-it-and-internet-impact-on-tourism-and-hospitality-industry-implementation-of-technologies-for-hilton-hotels-group/

Kollau, R. (2013, June 17). How new technologies are improving the onboard passenger experience? Retrieved May 28, 2016, from Airlinetrends.com: http://www.airlinetrends.com/2013/06/17/how-new-technologies-are-improving-the-onboard-passenger-experience/

Laverty, S. (2016). Impact of Technology on the Travel Agency Business. Retrieved May 28, 2016, from smallbusiness: http://smallbusiness.chron.com/impact-technology-travel-agency-business-57750.html

Lewis, I., Semeijn, J., & Talalayevsky, A. (1998). The impact of information technology on travel agents. American Society of Transportation and Logistics, Inc.

Mintel. (2012, April). Airline Mergers, Acquisitions and Consolidations – International. Retrieved May 28, 2016, from http://store.mintel.com/airline-mergers-acquisitions-and-consolidations-international-april-2012?cookie_test=true

Mocherman, A. (2012, May 07). The impact technology is having on the customer service experience. Retrieved May 28, 2016, from nuance: http://whatsnext.nuance.com/customer-experience/impact-technology-customer-service-experience/

NAP. (2016). 2 Impacts of Information Technology at the Industry Level. Retrieved May 28, 2016, from National Academies Press: http://www.nap.edu/read/2237/chapter/4

Peterson, B. (2015). Airline Mergers’ Impact: Hubs Disappear, Fares Rise. Retrieved May 28, 2016, from travelmarketreport: http://www.travelmarketreport.com/articles/Airline-Mergers-Impact-Hubs-Disappear-Fares-Rise

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