Case Study - Low Cost Airlines

Case study - Low cost airlines History of low-cost airlines The idea of LCC originated in the US. Founded in Dallas Texas on June 18, 1971 by Herb Kelleher, Southwest Airlines offered tickets that worked out to be cheaper than a car or coach ride. It is the fourth largest US airline in terms of domestic customers carried annually. It has been profitable every year since 1973. Low cost airlines in India But a booming economy, a congested and crumbling train network and the emergence of low-cost carriers similar to Ryan air have meant a slice of Indian society taking to the skies for the first time. With half-a-dozen airlines planning to launch in the next year, fares have tumbled – and more than a third of the seats will be filled with first-time flyers. Three years ago a return ticket from New Delhi, India’s capital, to Mumbai, the country’s financial hub, was fixed at 20,000 rupees. In 24 months, Air Deccan has revolutionised Indian air travel. Last year it carried 1 million passengers, this year that figure will reach 4.4 million. With 35 destinations, the fleet is already stretched and the company has ordered a further 62 aircraft. Difference between a market oriented organisation and those with a sales oriented/product oriented/production oriented organisation Market oriented With marketing orientation, a business revolves its strategic decisions around the wants and needs of the target market, including potential customers. A company that is marketing-orientated has the commitment to valuing customers and the customers’ needs. In fact, it can even contribute to the transformation of a company’s business culture. This marketing concept involves three essential steps in being customer-focused. First, the wants and needs of the customers are researched and identified. Then, the research outputs are studied by the marketers and new products are created based on the consumer needs. Finally, customer satisfaction is aimed