EasyJet is Europe’s leading low-cost‚ no frills airline. When it was created eight years ago‚ easyJet was a bold new venture aiming to change the rules of its market. Since its first flight in November 1995‚ the airline has grown from a Luton base offering two routes from Luton to Glasgow and Edinburgh‚ served by two Boeing 737 aircraft‚ to one that offers 125 routes from 39 European airports‚ operating 72 aircraft (November 2003). The phenomenal growth of easyJet was boosted by its merger with Go-fly
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Emirates Airline is considered a major airline in the Middle East. It operates approximately 2‚200 flights weekly across Dubai and the United Arab Emirates (Doganis‚ 2002). Its headquarters are conveniently located in Dubai where most of it flights are coordinated. Emirates Airline is also known to operate one of the longest flights in the world. Emirates Airline is part of the Emirates Group. The airline is owned by the Dubai government‚ one of the countries within the United Arab Emirates group
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Porters 5 forces Virgin Australia Threat of new entrants – The airline industry has been around for over 100 years and due to large capital requirements and overhead (high cost of planes)‚ the industry would not be greatly affected by new entrants and therefore the threat of new entrants is high. With low operating margins and high initial investment‚ a high market share is needed to ensure full flights (maximizing profits on each flight). This would be difficult for a new entrant. Industry
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oligopolists. The concept of low cost carries: A low-cost carrier or low-cost airline (also known as a no-frills‚ discount or budget carrier or airline or cheap flight) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices‚ the airline may charge for extras like food‚ priority boarding‚ seat allocating‚ and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors
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detailed analysis of how the product category offered in Jetstar is affiliated with the target segments. JS markets itself as a value carrier providing all day every day low fares with a wide network of air travel based in Australia and New Zealand. Jetstar is wholly owned by Qantas Group as its low fares airline and the world’s largest low-cost long haul carrier This report provides a description to the background of JS‚ elaborating on the analysis of the customers’ profile‚ their purchasing habits
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KLIA2 (Kuala Lumpur International Airport 2) is a new terminal for low-cost carriers which was built to replace the then existing LCCT (KLIA Low-Cost Carrier Terminal) which has been operating since 23 March 2006. The KLIA2 project was delayed for three years‚ with the costs of building the terminal increasing from RM2billion to RM4billion. KLIA2 was finally scheduled to start operations on 2 May 2014. However‚ one month prior to the opening of KLIA2‚ Malaysia Airports Holdings Berhad (MAHB) made
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revenue ▪ low-fare ▪ leisure travellers ▪ price is an important factor and strong driver for growth ▪ high cost incurred for flight changes ▪ Freight and other ▪13.5% of industry revenue ▪ freight transport‚ time sensitive & high value to weight item & charges on excess baggages‚ late fee‚etc... 1b. What is the current life cycle of the industry? The Australian airline industry is at the mature stage of its life cycle. This is demonstrated by the low average growth
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Company Case AirAsia: The Sky’s the Limit Low-cost carriers (LCCs) provide an alternative for price-sensitive business and leisure travelers to maintain their travel plans at lower cost. AirAsia‚ Asia’s leading airline‚ was established with the dream of making air travel possible for everyone and it is now one of the world’s best low-cost airlines. AirAsia was the first airline in Asia to introduce the budget‚ nofrills airline concept. It was founded in 2001 by CEO Tony Fernandes and this
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in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia‚ Thailand‚ Indonesia‚ Macau‚ China‚ Philippines‚ Cambodia‚ Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia‚ and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis
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prefer to travel by plane‚ not for the short or long-haul. They are still too conservative and rather take a bus‚ train or drive themselves to the places they want to be. Because Southwest Airlines is very customer orientated they are providing low costs and quick movement. This is more for the new generation‚ people who are also familiar with for example the internet. Everything is moving faster and as a shorter life cycle. The older people within the United States could find it too hard to deal
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