driving force for choosing an airline carrier. In European and American customers look for a more traditional airline which offers factors such as comfort‚ food‚ cleanliness‚ etc… 2. Do governments pose a significant obstacle to the expansion of low-fare airlines in Asia? Yes Governments do pose a significant obstacle to the expansion of low-fare airlines in Asia. Government airline regulations in Asia prohibit competition to take place amongst airline carriers‚ allowing the government opportunities
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Background Summary: Southwest airlines was founded in Texas in 1971 as a small‚ regional intra-state carrier. They chose to service the Golden Triangle of Houston‚ Dallas‚ and San Antonio. By staying within Texan borders‚ they could avoid federal regulations. They used Boeing 747 planes in their fleet. Since their inception‚ they have been striving to become the leading low-cost carrier in the United States. They have successfully accomplished this. The company has remained profitable despite
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Acquisition Executive Summary 1. After the deregulation of the US Airline industry in 1978‚ the barriers to entry within the industry came down significantly and many Low Cost Carriers emerged overtime. 2. The emergence of rival Low Cost Carriers and the improvement in the Operation Efficiencies of Full Cost Carriers progressively eroded Southwest’s competitive advantage. 3. A closer look at AirTran’s value chain and its resultant efficiency shows significant differences in the operational
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international routes from nine regional hubs in Malaysia‚ Thailand (Thai AirAsia) and Indonesia (Indonesia AirAsia). AirAsia’s head office and its main base is the Low Cost Carrier Terminal at Kuala Lumpur International Airport. This terminal handles 48.4% of AirAsia’s traffic (see appendix 2). AirAsia is the leading low-cost carrier in the world and won the Skytrax award for World’s Best Low-Cost Airline in 2009 and 2010. In addition‚ the company is Asia’s largest low-fare‚ no-frills airline and has
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reporting airlines • Diverse line of airline carriers • Implementation of Stetson Quality Suite • Participation in the Aviation Safety Action Program Weaknesses • Lost baggage: 9.53 reports per 1000‚ double the industry average • High number of customer complaints • Airline quality rating study found SkyWest near the bottom of 16 airlines for customer service Opportunities • Increasing number of business travelers traveling on low-cost carriers • Larger capacity for hiring • Potential for
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IndiGo is a private‚ carrier based in Gurgaon‚ Haryana‚ India. The airline started operations in August 2006 and currently holds the largest market share with 24.9 per cent in India. Ranking 11th among the 25 biggest low-cost airlines in the survey done by the CAPA (Centre for Asia Pacific Aviation) Indigo emerged as one of the largest low-cost airlines. Its capacity increased 34.6 per cent ; IndiGo and Indonesia’s Lion Air’s capacity growth is the second highest among all low-cost carriers ‚ only second
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period of financial unrest. Ever since the airline commenced operations in 2005 it acquired losses. On 20th October 2012‚ the kingfisher’s license was suspended by the Directorate General of Civil Aviation. BUSINESS STRATEGY Once voted the best carrier in India‚ the business model of Kingfisher Airlines was always a recipe for disaster. Those in the aviation business were amazed and amused to see Vijay Mallya‚ splurging on the Airlines as if there was no tomorrow. KFA was an airline for people
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The Industrial Landscape of Low Cost Carriers‚ London. Klophaus‚ R.‚ Conrady‚ R.‚ Fichert‚ F.‚ 2012. Low cost carriers going hybrid: Evidence from Europe‚ Journal of Air Transport management‚ Vol. 23‚ pp. 54-58. Martinez-Garcia‚ E.‚ Rerrer-Rosell‚ B.‚ Coenders‚ G.‚ 2012. Profile of business and leisure travelers on low cost carriers in Europe‚ Journal of Air Transport Management 20‚ pp. 12-14. Mason‚ K.J.‚ Alamdari‚ F.‚ 2007. EU Network Carriers‚ Low Cost Carriers and Consumers Behaviour: a Delphi Study
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Star Online (2010). Survey: Malaysians have most Facebook friends [Online] Selangor ‚ The Star. Available from http://thestar.com.my/news/story.asp?file=/2010/10/13/nation/7212273&sec=nation The Star Online (2012) The Star Online (2012). Other carriers may benefit from MAS route cuts [Online] Selangor ‚ The Star. Available from http://biz.thestar.com.my/news/story.asp?file=/2012/2/23/business/10787376&sec=business The Star Online (2012c) AirAsia X realigns routes‚ focuses on core markets [Online]
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References: Bureau of Transportation Statistics‚ Research and Innovation Technology Administration. (2011). Flights All Carriers – All Airports (Data Elements): 2011 data (International flights services for major airports). Retrieved from http://www.transtats.bts.gov/Data_Elements.aspx?Data=2 Hitt‚ M.‚ Ireland‚ R.‚ & Hoskisson‚ R. (2009). Strategic management: Competitiveness
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