30 6.4.3 Place 31 6.4.4 Promotion 31 6.4.5 People 31 7 Monitoring and control 32 8 Budgets .....................................................................................................................32 8.1 Costs 33 8.2 Break Even 34 8.3 ROI…………………………………………………………………………….33 9 Conclusion 35 Bibliography 36 Appendix...............................................................................................................…...36 Date: 01/07/2008
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Introduction AirAsia Berhad is the leading airline in Asia which offers the largest low fare for domestic and international flights. It was established as a low cost airline as a dream by making flying is possible for everyone. It is just like their company slogan ‘Now Everyone Can Fly’. It scheduled to travel up to 78 destinations across to 25 countries domestically and internationally. AirAsia was a company originally owned by Malaysian government which was later bought by Anthony Francis
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to offer airline services which were low-cost‚ in busy markets of not more than 500 miles. The first flights were between Houston‚ Dallas and San Antonio. Today Southwest is one of the largest airlines in United States for its local passenger miles flown. Southwest has executed business models in an effective manner that distinguishes it from other US airlines which use the same models though executed differently. Its main methods used are in providing low cost service to customers‚ and through identifying
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that Southwest Airlines is generally using two competitive strategies. They apply not only the strategy of low costs‚ low fares and frequent flights to form their cost structure‚ but also the “People” strategy‚ Southwest Airlines differentiate themselves by offering affordable journey with the valuable customer services. Southwest services involves frequent on time departures as well as low cost fares. SWA execute this strategy by flying the fuel efficient 737s. They also emphasize point-to-point routes
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must be 200 words or more. Please research your original responses to these questions and cite your sources according to APA. 1. Southwest has mastered the low-price model and has the financial results to prove it. Why don’t the other airlines copy Southwest’s model? 2. What risks does Southwest face? Can it continue to thrive as a low- cost airline when tough economic times hit? Post at least 2 responses‚ minimum of 150 words in length‚ to your fellow student’s posts or your Instructor ’s posts
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challenges. The first is the cost of running the airlines itself. An aircraft requires whole crews of engineers to maintain its functionality. And then there’s the market. Competition comes from various international airlines‚ each offering a different route and different types of services. Those two factors comes to a conclusion: Any airlines who can offer less in terms of ticket pricing will win the market. This causes a new trend within the industry: The Low Cost Carriers. The new trend is highly
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despite decrease in cost. Tiger airways target the people who are travelling on limited budgets‚ primarily younger adults‚ students and low wagers. According to the website of Budget carrier Tiger Airways‚ they have promised the lowest airfares: At least 40 per cent less than the average lowest fare in Singapore. In exchange for the lower cost‚ the travelers have to sacrifice on comfortable seats and leg space. People are willing to give away greater luxury for travelling at lower cost. STRATEGY:
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Over the past years South Africans have been faced with disappoints regarding low cost air travelling‚ air travel was at one stage only for large income earners. South African Airways (SAA) was the recognized and deemed as the loyal carrier for air travelling passengers. Prior to 2006 there were three low cost airlines operating within the country‚ on 15 November 2006 funded by SAA the emerging of Mango airlines took place. Tickets sales for the airline were sold out for almost a month‚ the prices
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one to try new things. Venturing into the low-cost carrier industry was a risky move on his part. While low-cost carriers had been pretty much established in North America‚ Ireland and U.K‚ as well as most Europe‚ many of the airlines in Asia were still affluent‚ well-established and often‚ state-owned airlines. This risk‚ it would seem‚ paid off in the end as evident in the fact that nearly a fifth of the Asia’s airline seats are now supplied by low-cost carriers. [6] He is also one of the first
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176‚000)‚ which is less than the next lowest net income by $20‚000‚000‚ which happens to be American Airlines. United and American are seen as the two largest legacy carriers‚ but are still unable to turn a profit due to their large operating costs which is representative of the constant competition in the industry and both airlines focus on staying ahead of their nearest competitor. Overall the financials of United are not attractive to the average investor‚ but analysts have hope for United
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