Market Place: Malaysia Airlines (MAS) has announced their new business plan for year 2012‚ aiming to restore their profitability on the premium sector‚ as to become the preferred premium carrier. (Business Plan‚ Our Way Forward‚ December 2011‚ page7) By achieving the vision as to become the preferred premium carrier‚ they will be launching a new regional premium airline. In the first half of 2012‚ they will launch new short-haul brand‚ flying an entirely new Boeing 737-800 fleet‚ as to focus the unique
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arrival of the low-cost airlines like Air Deccan (merged with Kingfisher now)‚ Go Air‚ and SpiceJet revolutionized the sector to meet the growing demand of economical and faster inter- city travel options within India. Air travel is no longer the luxury of business executives and the economically well-off. As more airlines are entering India’s domestic aviation market‚ it is leading to increased competition‚ resulting in drastic fare cuts. ABOUT THE COMPANY SpiceJet is a low-cost airline headquartered
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high costs or fines unless they comply with strict labour legislation or lay off employees. Unionisation is‚ however‚ weaker in the budget airline sector‚ which puts less stress on Ryanair. Economic - Europe is undergoing economic slowdown. People therefore spend less‚ in general‚ and tend to travel less‚ as a result. - High oil prices inflate costs of fuel and impact margins negatively. - At the same time‚ people are ready to travel for less and thus willing to opt for low-budget
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MarketLine Case Study Ryanair The world’s leading low-cost airline Reference Code: ML00001-086 Publication Date: March 2012 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED RYANAIR CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-086/Published 03/2012 Page | 1 OVERVIEW Catalyst Ryanair Holdings (Ryanair) operates a low-fares scheduled passenger airline serving short-haul‚ point-to-point
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AirAsia Group‚ a world-famous low cost airline that operates extensive networks both domestically and internationally. * Since pioneering the low-cost carrier (“LCC”) model in ASEAN in 2001‚ it has grown from a domestic airline to the leading airline in Malaysia serving more than 55 destinations from its five hubs in Malaysia. Along with its affiliates (Thai AirAsia‚ Indonesia AirAsia‚ Philippines’ AirAsia and AirAsia Japan)‚ AirAsia Group is the largest low-cost carrier in Asia in terms of fleet
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is a Malaysian low-cost airline headquartered in Kuala Lumpur‚ Malaysia. • Air Asia was established in 1994 and began operations on 18 November 1996. • On 2 December 2001‚ the airline was bought by former Time Warner executive Tony Fernandes’ company Tune Air Sdn Bhd • AirAsia group operates scheduled domestic and international flights to 100 destinations spanning 22 countries. • AirAsia X is the international operation of the brand AirAsia‚ which is Asia’s largest lowcost carrier. • There are currently
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Analyzing the cost leadership strategy of Southwest Airlines Fuel Hedging Other factors Hedging is an investment position intended to offset potential losses/ gains that may be incurred by a companion investment. Single type of aircraft usage from a single vendor Following a point to point model enabling the various new opportunities nearby once started serving to a new market Maximum 3 cabin crew as compared to average of 6 cabin crews Using less congested airports for being low turnaround
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competitive. One of them is to give the price benefit to attract a large number of customers. Low cost fares can be a good strategy to attract new customers. During the initial years of the century this industry has already faced grave economic problems. Factors like economic downturn and rising fuel prices negatively impacted this industry and its profitability. Recession has also weakened it further. The low cost carriers or LCCs have intensified the competition and no airline can afford to remain competitive
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billions per year. Thus in June of 1971‚ after a tumultuous battle with other Texas-based airlines‚ Southwest Airlines inaugurated its initial flight (Inkpen 2008). As one of the United States’ new low-cost carriers‚ Southwest Airlines predominantly distributed “short haul‚ high frequency‚ point-to-point‚ low-fare service” (Keller 2008) serving “64 cities in 32 states” on the wings of Boeing 737 aircraft (Thompson 2008). In each successive year since 1973 Southwest has turned a profit (Keller 2008)
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2. Air carriers move goods faster to locations throughout world‚ with the new drone technology air carriers companies will be able to reach areas fasters with the possibility of moving goods outside of using freight as a primary mode of transportation. The advancing of new air freight is expanding to space‚ private companies are deliving goods to space and one day private companies will provide passengers a chance to travel into space. 3. Air carriers can haul across the world directly but the
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