2013: A Case Study Embry-Riddle Aeronautical University Worldwide Abstract Airline distribution systems are undergoing a dramatic change in the way airline tickets are distributed due to the influence of different factors such as new technology‚ low-cost demands‚ and the changing needs of travelers. This paper will discuss those factors and discuss Global Distribution Systems (GDS) and what advantages airlines would gain from being in control of ticket distribution. The strengths and weaknesses
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The Treat of New Entrants The unparallel success of AirAsia had stimulated many LCC to enter the market in its region‚ some of which are large full-service airlines’ subsidiary companies. Knowing that the new-comers would copy its low cost strategy‚ AirAsia introduced a series of unique services. For example‚ it was the first airline in Malaysia to allow online check-in. What’s more‚ it offered more choice for those who wanted to pay more for convenience‚ such as the Xpress boarding service and
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gathered from internet‚ books and journals. 1.0 Introduction AirAsia‚ company that provides lowest cost flight. AirAsia was a representative of the lowest fares with the slogan “Now everyone can fly”. The scope of business includes domestic Malaysia and international‚ it includes 25 countries in the world. AirAsia corporate headquarters is in Kuala Lumpur international airport. Thought they provide lowest cost but they can still operating profits. AirAsia was established in 1993 and it was started operations
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This paper will critically analyze the background of Qantas which decided to launch Jet Star‚ the new low cost carrier‚ in 2004. Secondly‚ this paper will critically analyze the revenue and profit performance of Qantas’s domestic airline against its main competitor Virgin Blue in 2010‚ 2011‚ and 2012. Annual report for each organization will be used to support this statement‚ and also used to determine whether Qantas’s domestic airline was an acquisition of future growth potential. Thirdly‚ the CEO
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internationally recognised as one of the world ’s leading carriers. The company had recognised that in this highly competitive market‚ any advantage gained by one airline over others will be short-lived‚ and ideas that are new will become commonplace in a matter of months. As such‚ SIA noted the importance of having to always stay at the forefront both in service and technology. This strategy of SIA focuses primarily not on reducing costs‚ but on enhancing quality or service and preventing any customer
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Opportunities Europe ’s bloodbath (again) 1. Recessionary conditions suit true Low Cost Carriers best. The global economic recession has handed Ryanair and similar carriers near-perfect operating conditions. As Ryanair explains‚ "this recession has encouraged passengers to become much more price sensitive which is why they are switching to Ryanair ’s low fares and unbeatable customer service over all other competitors". Ryanair expects a 15-20% reduction in average fares this year to around
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Bibliography: August 28‚ 2008 Zoom Airlines files for bankruptcy‚ grounds planes stung by sky-high fuel costs and cancels all flights‚ leaving hundreds of passengers stranded at airports.
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proceeded to engineer a remarkable turnaround‚ turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1. In 2003‚ AirAsia opened a second hub at Senai Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary‚ added Singapore itself to the destination list‚ and
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AirAsia needs no introduction in ASEAN‚ where it is the leading low-cost carrier‚ connecting people and places across 132 routes‚ 40 of which are offered by no other airline. In 2010‚ the Group‚ which includes affiliates AirAsia Thailand and AirAsia Indonesia‚ reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest and breaking the RM1 billion profit barrier. From an airline with two aircraft plying six routes in Malaysia in January 2002‚ AirAsia has soared
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delays and total trip time. 2) Low operating costs - Use a single type of aircraft (Boeing 737) that makes scheduling‚ operations‚ maintenance‚ and training more simplified. - Outfit the fleet with fuel-saving‚ performance-enhancing blended winglet that extend flight range‚ save fuel‚ and reduce engine maintenance costs and takeoff noise. - Fuel cost saving. Southwest effectively takes advantage of fuel hedging to buy fuel at lower prices. And to cut fuel cost Southwest also takes some other
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