Set Up of Flight Crew Accommodation

You work for InterContinental, a large international airline based in Paris, France.

The airline has numerous agreements in place with hotels across the globe to ensure accommodation is readily available for InterContinentals flight crew during their stopovers. The agreements are such that the airline commits to reserving a fixed number of rooms over a specific period and the hotel would offer these at concessionary rates. These arrangements are typically reviewed on an annual basis.

The airlines most frequently served destination is John F. Kennedy International Airport, New York to which it operates 4 Boeing 777 flights daily. Each aircraft has a crew of 17 (2 pilots and 15 cabin crew). Hence, on any day there is a requirement to accommodate 68 crew members in New York.

Since New York is a popular destination with both business travelers and tourists, hotels generally achieve excellent occupancy so there has been a gradual decline in the concessions that the airline has been able to achieve. As a consequence, over the last 5 years, the airline has changed its nominated hotel on three occasions in order to retain competitive rates.

Within the next two years the airline is anticipating increasing its frequency to five flights daily and operating the larger Airbus A380 on each of these flights. These aircraft have a crew of 23 (2 pilots and 21 cabin crew). Hence there will be a requirement to accommodate 115 staff members daily.

Another problem has been the ongoing difficulty in transporting crew between the airport and hotels selected due to traffic congestion.

In view of the above, the airline has decided to establish its own hotel within two years which will be located in close proximity to the airport. In addition to accommodating crew the airline has decided to build the hotel with a view to operating it as a commercial enterprise.

Hence the key objectives of the project are as follows:

1. Provide a permanent base for the airlines flight crew on layovers.
2. Provide a location which is within 10kms of the airport and with good road access between the airport and hotel.
3. Provide rooms which can be used for the airlines overbooked passengers and / or passengers who have missed their connecting flight.
4. Offer accommodation to passengers from other airlines who may be looking for short term accommodation whilst in transit.

As a long serving senior manager with InterContinental, and with extensive experience in sourcing overseas accommodation for the airlines crew, you have been assigned as Project Manager for establishing this facility.

Task 1: Project Scope (25 marks)
A well established, USA based property developer has already been selected by the airline with a view to sourcing a suitable plot of land and subsequently constructing the hotel. Your first task as Project Manager is to meet senior representatives of the property developer and outline the scope of the project in order that they are fully briefed on InterContinentals requirements.
Discuss the key points that you would expect to communicate to the property developers representatives in order that they fully understand the scope of the project.

Task 2: Risk Assessment (40 marks)

Before commencing the project it would be necessary to carry out a Risk Assessment.

Specify eight risks which might impact on the success of the project and for each risk:

Outline the action you would take to minimise the risk.
Outline the contingency plan you would have with regard to the risk.

Task 3: identification of the Key Milestones (20 marks)

List what you would consider to be ten important milestones of the project.

Overall structure and clarity of the report (5 marks)
Conclusion and Recommendations (10 marks)
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