Business Models in the Airline Industry January 30‚ 2013 Winter term 2013 Outline Evolution Hub-and-spoke route networks Legacy carriers Low cost carriers (LCCs) Ultra low cost carriers (ULCCs) Regional and charter carriers Evolution Before deregulation Full service network carriers No low cost models No price competition (same price on a given route) Full-quality service Point-to-point route networks After deregulation Proliferation
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The basis for Value Creation of a classical hub-organised airline consists of its operating hub and spoke strategy. This system implies that all flights move along spokes connected to a hub placed at the centre. In fact all long-haul flights depart from the hub‚ to which all passengers are flown in the first place. Therefor it is necessary to own a heterogeneous fleet to secure an outstanding efficiency of the long distance flights. To have an attractive and used to capacity hub at one’s disposal
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the low-cost airline industry 3 1.2 Strategic group map example in the low-cost airline industry 5 QUESTION 2 2.0 Comprehensive analysis of SA low-cost airline industry 6 2.1 Buyer Power 10 2.2 Supplier Power 10 2.3 Substitutes 10 2.4 Rivalry 10 2.5 New Entrants 11 2.5.1 Government Policy barriers 11 2.5.2 Capital Requirements 11 2.5.3 Economies of Scale 11 2.6 Competitive Advantage 12 2.7 SWOT analysis 13 2
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GROWTH OF AIRLINE INDUSTRY IN INDIA In December 1912‚ the Indian State Air Services in collaboration with UK based Imperial Airways introduced the London -Karachi - Delhi flight‚ the first International flight to and from India. In 1915 Tata Sons Ltd. started regular air mail services between Karachi and Madras and on January 24‚ 1920 Royal Airforce started regular airmail services between Karachi and Bombay. Construction of Civil Airports in India started in 1924 (Calcutta‚ Bombay and Allahbad)
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Dynamic Pricing in the Airline Industry R. Preston McAfee and Vera te Velde California Institute of Technology Abstract: Dynamic price discrimination adjusts prices based on the option value of future sales‚ which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination‚ and confronts the theories with new data from airline pricing behavior. Correspondence to: R. Preston McAfee‚ 100 Baxter Hall‚ California Institute of Technology‚
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Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins‚ 2006‚ Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders
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External Analysis 1. PESTLE Factors Political and Legal· Government has high work efficiency‚ justice and transparency.· Company or individual have low tax rate easy to calculate.· Government supports the development of industry and commerce. | Economic·Hong Kong is the world’s 11th trading powers and 2nd stock market in Asia.·One of the most free trade port and open investment policy. It is the only one RMB offshore market.·Over-estimation of the number of visitors.·Loss $46 million in the
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Introduction Airline industry is one of the most efficient and competitive among long distance transport today. It has also changed the way in which people live and conduct business by shortening travel time and altering our concept of distance‚ making it possible for us to visit and conduct business in places once considered remote. Not only airline industry facilitates economic growth‚ world trade‚ international investment and tourism‚ it is also one of the major engines powering the globalization
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PAPER ON Marketing Environment Analysis for Automotive Industry in India SUBMITTED BY ANANGA DAS JIPMT001 INTRODUCTION The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India’s passenger car and commercial vehicle manufacturing industry is the sixth largest in the world‚ with an annual production of more than 3.9million units in 2012. According to recent reports‚ India overtook Brazil and became the sixth largest passenger vehicle
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The Prisoners’ Dilemma in the airplane industry Games of Strategy Home Assignment Tamás Seres Introduction 3 The Prisoners’ Dilemma 3 An Oligopolistic market: 5 The Case Study 6 Conclusion 8 References: 8 Introduction In today’s world the Prisoners’ Dilemma is a common phenomenon in business‚ politics and in social life as well. This paper will analyze a real life example. It will describe the airplane manufacturing industry and their two giant manufacturers: Airbus
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