• Employs over 4‚500 people who are non-unionized. • As of December 31‚ 2003‚ WestJet’s Cost per Available Seat Mile (CASM) was 11.07 cents vs. Air Canada’s 16.87 per CASM • The company has elected to replace its fleet of 737-200 aircraft with state-of the art 737-700. By December‚ 2005‚ the company will operate 55 state-of-the-art 737s. o This replacement cost caused the company to incur a $47.6 million dollar write-down in assets in 2004. o 2004 Q4 net
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events occur. What if price war happens... To compete with the rivals‚ each airline introduced its own strategy. Famous full service carriers like Singapore Airlines and Thai Airways have set up low cost subsidiaries. Malaysia Airlines launched competitive promotion scheme while independent low-cost airlines like Valuair focused on improving customer services through offering additional benefits to customers. Obviously‚ the harsh competitiveness in the region strengthens the probability that price
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Jet Blue Business Analysis Introduction JetBlue Airways Corporation has established itself as a low-fare passenger airline with a differentiated product and a high-quality customer service. They focus on serving underserved markets and large metropolitan areas that have high average fares. They offer both short-haul and long-haul routes that are point-to-point rather than the ’hub and spoke" route system that has been adopted by most major U.S. airlines. JetBlue was incorporated in Delaware
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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 to Spane’sVueling Airlines ‚ which added 40 per cent capacity last year. IndiGo was the
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{text:bookmark-start} {text:bookmark-start} Background {text:bookmark-end} {text:bookmark-end} A successful example of a Malaysian no frills airline is Air Asia. Revolutionized and Reinvented by Tony Fernandez in 2001. It is based on the low-cost‚ no-frills model of the US carrier Southwest. The concept of Air Asia is based on the belief that demands for short-haul air transport is price flexible. That means‚ if prices for flights are being reduced‚ more people will fly. Traditionally‚ airline
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industry and domestic airline yields to drop twenty percent. These yields wouldn ’t recover from pre attack rates until 2006. In fact‚ as of October 2006‚ five major United States airlines were operating under Chapter 11 bankruptcy protection. Fuel costs in the United States have seen a dramatic increase since the terror attacks in 2001. Social: The airline industry‚ like every other industry‚ has been affected by the introduction
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Government‚ its employees‚ managers‚ customers‚ suppliers‚ agents and investors. (Malaysia airlines‚ 2006) While MAS has award-winning products and services‚ competitive cost base‚ and only slightly below average load factors‚ they yields are dramatically lower than their competitors. Therefore‚ they immediate problem is one of low cash and
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Fleet: all Boeing 737s which means better fuel efficiency and low maintenance • Scheduling: quick turns that results in high asset utilization • Service: short haul‚ point-to-point‚ low cost‚ no-frills flights from secondary airports in good-weather areas • Integration: contract out non-core activities like major maintenance‚ data processing‚ and legal services which will decrease costs • New markets: enter in full force • Positioning: low cost to travelers‚ yet reliable and fun mostly aimed at business
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scale) • Very strong management team • Very good in strategy formulation and execution (Economy of scale) • Strong brand equity - AirAsia’s brand name is well established in Asia Pacific (Learning Curve) • Cost advantage (Economy of scale) • Market share leadership- AirAsia is the low cost leader in Asia (Economy of scale) • International alliances (Linkages) • Very flexible and high committed workforce (Learning Curve) • Excellent utilization of IT (Capacity Utilization‚ Learning Curve) •
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“NewAir.” JetBlue offers low-cost travel with on board amenities‚ such as in-flight entertainment‚ TV on every seat and Satellite radio. The company is headquartered in the Long Island‚ New York at the John F. Kennedy International Airport (Wikipedia). Analysis of Jet Blue Airways JetBlue operates under the constraints of the airline industry and its unique dynamics: intense federal regulation‚ customers driven mainly by price and route with low brand loyalty‚ heavy capital costs‚ and monopolistic conditions
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