Frequent‚ on-time departures Low cost fares‚ only 2 types of fares per root No seats assigned‚ no meals Point-to-point roots Higher equipment initialization‚ shorter turn-around times Competitive advantage: Cost structure "The workforce is dedicated to the company. They’re Moonies basically. That’s the way they operate." Issue: New Competition. Other US airline companies started to imitate Southwest Airlines and created their own low cost carriers (for example: Continental Lite
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success in the South East Singapore Airlines Ltd. said its July-September profit fell 36 percent as fuel costs boosted expenditures. The airline warned passenger demand may drop next year. Problem Statement The net profit for Singapore Airlines’ was 324 million Singapore dollars ($219 million) in the fiscal second quarter in 2008‚ down from SG508 million in the same period a year ago‚ the carrier said in a statement‚ "Although advance bookings for the immediate next quarter are holding up reasonably
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leading and largest low-cost carrier in Asia‚ services an extensive network of 85 destinations. Within 10 years of operations‚ it has carried over 152 million guests and grown its fleet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia‚ Indonesia‚ Thailand‚ Philippines and Japan. This is complemented by AirAsia X‚ its low-cost long-haul affiliate carrier that currently
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1935 (Hanson‚ 2011). The growth of Qantas has been substantial with the most significant progression being the Australian government selling its domestic carrier Australian Airlines to Qantas in 1992 and the announcement of privatisation soon after (Hanson‚2011). Throughout this journey of growth there has been extensive changes including flight costs‚ pay disputes‚ strikes and shutdowns‚ industrial action by pilots and technical staff. It has also had an impact on other airline companies‚ most notably
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Statement Jet Blue Airways owner‚ David Neeleman‚ understands the difficulty that comes with trying to break into the airline industry. Being as though the airline industry is expensive‚ will David Neeleman be able to start an airline that has low ticket costs‚ technology driven‚ and customer friendly atmosphere while still competing with other airlines? II. Analysis Jet Blue Airways was first introduced in 1998 five after David Neeleman sold Morris Air to Southwest Airlines because Southwest Airline
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several challenges faced by low cost carriers in Europe like rising aviation fuel costs‚ ensuring staff productivity and maintaining a large fleet for expansion. 1. There are lots of airways which is provide cheap fare of flight such as easyjet‚ Virgin express‚ Air Berlin and so on. As minor airways use the same routine‚ minor airports get a purchasing power from the airlines competition. It is hard situation for Ryanair to minimize the fare. 2. The aviation turbine fuel costs fluctuated as economic
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AirAsia‚ the most successful and leading low fare carrier in Asia Pacific region is practicing a concentration strategy since it takes over by Tony Fenendez in late 1990s. I strongly believe this strategy will continue to work if it is under the leadership of Tony Fenendez. The concentration strategy under the current practice will able to make AirAsia remain competitive:- 1. Managing Cost of Human Capital. Multi tasking Cabin Crew. Where all the Cabin crew are required to handle check in ticketing
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strategic analysis of AirAsia Berhad‚ a leading low fare airline in Asia that adopts a no-frills‚ hassle-free‚ low fare business concept. AirAsia continually ensures the satisfaction of the needs of its various stakeholders‚ aggressively gains market share by undertaking various measures in line with its innovative and low cost strategy and seeks to add value by embracing technology‚ emphasizing on service and placing importance on employee satisfaction. The cost advantages created through high aircraft
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financial distress can lead to bankruptcy. Financial distress is usually associated with some costs to the company; these are known as costs of financial distress. A common example of a cost of financial distress is bankruptcy costs. These direct costs include auditors’ fees‚ legal fees‚ management fees and other payments. Cost of financial distress can occur even if bankruptcy is avoided (indirect costs): Financial distress in companies can lead to problems that can reduce the efficiency of management
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of AirAsia‚ the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom‚ a government owned- conglomerate. On 2 December 2001‚ the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue
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