Juan Batista MBAA Business Research Methods ERAU With airline deregulation and the spread of increased competition to airline markets around the world‚ control of operating costs and improved productivity have become critical to the profitability of airlines. The emergence and rapid growth of “low-cost” airlines is due in large part to their ability to deliver air transportation services at substantially lower costs and at higher levels of productivity than the traditional “legacy” airlines
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Crafting and Executing Strategy Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy The airline industry is facing one of its most difficult times in history. A worldwide recession along with the terrorist attacks of September 11‚ 2001 have led to a decrease in passenger traffic‚ reduction in revenue and rising fuel prices. Additionally‚ airline companies face the increase competition from new entrants. The shortage of pilots has also caused
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permission to begin flying four flights a day on the Dublin-London route. In doing so‚ they challenged the monopoly of British Airways and Aer Lingus with fares that were much lower. Ryanair’s strategy was to offer simple‚ low-cost fairs and exemplary customer service. During the later part of the 80s Ryanair continued to compete vigorously with British Airways and Aer Lingus while adding additional routes and airplanes (Creaton 2004). In 1990 Ryanair suffered a £20 million loss and was forced to completely
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Opportunities Europe ’s bloodbath (again) 1. Recessionary conditions suit true Low Cost Carriers best. The global economic recession has handed Ryanair and similar carriers near-perfect operating conditions. As Ryanair explains‚ "this recession has encouraged passengers to become much more price sensitive which is why they are switching to Ryanair ’s low fares and unbeatable customer service over all other competitors". Ryanair expects a 15-20% reduction in average fares this year to around
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has been extraordinary. Ryanair currently employs a team of 1500 people and will carry over 13 million scheduled passengers in the current year (2002). In 1986‚ Ryanair broke the high fare cartel‚ which was then operated by the two state airlines Aer Lingus and British Airways in the Dublin-London route. The first four years Ryanair was carrying 600‚000 passengers annually‚ but had managed to lose 20million pounds. Under a new management team‚ headed up by Michael O¡¦Leary‚ a major overhaul of
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Etihad-Jet Airways deal Etihad Airways of the United Arab Emirates and Jet Airways of India yesterday announced that the UAE national carrier has agreed to subscribe for 27‚263‚372 new shares in Jet Airways at a price of INR754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways. Etihad Airways’ wider overall commitment to Jet Airways includes the injection of $220m to create and strengthen
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Ryan air‚ an Irish airline started in 1985 by Ryan family with a capital share of £1 and a staff of 25. Over the past few years the company has shown tremendous ontogeny. Indeed it is Europe’s largest low cost carrier and fastest growing airlines. Currently it’s operating more than 1‚500 flights every day from over 50 bases and around 1400 low fare routes across 28 countries which connect 165 destinations. Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro
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SkyTeam‚ branded as SKYTEAM‚ is an airline alliance with its centralised management team‚ SkyTeam Central‚ based in the World Trade Center Schiphol Airport on the grounds of Amsterdam Airport Schiphol in Haarlemmermeer‚ Netherlands.[2][3] SkyTeam was founded in 2000 by Aeroméxico‚ Air France‚ Delta Air Lines and Korean Air – the last of the three airline alliances to be formed – but has grown to become second largest airline alliance in the world (in passenger number terms and members)‚ behind Star
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Legislation that impacts on communication in Ireland Introduction In this report I am going to explain data protection‚ talk about the data protection acts‚ rights and principles. I’m going to talk about a data controller and a data processor and what their responsibilities are. What personal and sensitive data are. What a data receiver is and what his rights are‚ what is involved in direct marketing and I will mention an example of abuse or corruption that occurred in Ireland. Data protection acts
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If Marketing Is Not Advertising - What Is It? Marketing Framework Market Research and Buyer Behaviour Understanding the behaviour of buyers in your target group is crucial in marketing. Now more than ever‚ success is dependant upon market research and identifying and meeting customer needs at a profit. ‘Zara’ have recently become the world’s largest clothing retailer‚ ‘by focusing on understanding consumer needs and behaviour and by providing value to the customer’. Through intense
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