1.0 Introduction The objective of this report is to present the case study of e-commerce that related to the airline industry especially low cost carrier. The specified airline to be focused in this discussion is AirAsia. Mr. Tony Fernandes who had bought over AirAsia with the company value of so called “one dollar RM” established AirAsia in 2001. At that time‚ he expected AirAsia to carry nearly twenty millions passengers within the next five years. The company strategy is to provide a convenient
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single largest customer for the aircraft in Asia-Pacific‚ and potentially one of the largest airline fleets in the region. On 23 of March 2006‚ AirAsia successfully moved its operations to the new Low Cost Carrier Terminal (LCCT). This is a major milestone as it is the first dedicated terminal for low cost carrier operations in the world. Besides that‚ they have achieved many more heights even in the past 2 year. AirAsia are focus on its performance measurement system and made sure that whatever they
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New Entrant * The 1978 deregulation of the U.S. airline industry * The increasing of fuel price and labor costs * High competition * Brand loyalty The 1978 deregulation of the U.S. airline industry has attracted many new entries of low-cost airlines. However‚ as the competition in low-cost airline industry is very high‚ as well as the price of jet fuel and labor costs‚ many airline companies declared bankruptcy. Moreover‚ consumers start to have brand loyalty and are familiar with
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If customers are not satisfied‚ they will simply refuse to purchase the service provided and look elsewhere. Major Findings of the report 1.0 Segmentation Virgin Blue and Jetstar both segment towards the leisure market‚ as they are both low-cost carriers and therefore the leisure market tend to be more price elastic compared to business travelers (Bamber‚ 2006). However Virgin Blue have
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Case-3: JetBlue Airways: A cadre of New Managers Takes Control. Introduction: JetBlue Airways Corporation‚ often stylized as jetBlue‚ is an American low-cost airline. The company is headquartered in the Long Island City neighborhood of the New York City borough of Queens. Its main base is John F. Kennedy International Airport‚ also in Queens‚ and maintains a corporate office in Cottonwood Heights‚ Utah. The airline mainly serves destinations in the United States‚ along with flights to the
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should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually‚ the 2011 report was elaborated along two different axis of analysis. In a first part‚ the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself‚ if Ryanair has grown so fast‚ it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason
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boost loads amid intense competition and key revenue-generating currencies depreciated against SGD. Fuel prices remained high despite the weak global economic conditions. This had negatively impacted the Group’s operating performance as fuel cost is the largest cost component‚ constituting about 40 per cent of the Group’s operating expenditure. Group revenue grew $240 million (+1.6 per cent) to $15‚098 million‚ mainly from airline operations‚ as a result of stronger passenger carriage‚ albeit at lower
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differentiates its no frills product by offering less features at substantially low fares. However‚ this strategy will become generic with the entry of low cost carriers waiting in the wings. At that stage‚ low cost competition will each need to try and “be different”. Limited product differentiation is an opportunity‚ but mustbe approached with extreme caution.This has happened in the West and by trying to differentiate; some low-cost airlines also losetheir bearing and begin adding frills like assigned seating
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edu/bus100tmariani/home/global-market-strategy Sanner‚ K.‚ Swider‚ J.‚ Uszynska‚ R.‚ & Vierela‚ M. (2012). Situation Analysis. Retrieved from http://issuu.com/rainelleu/docs/southwest_airlines?e=6172574/1804712 Scilly‚ M. (2014). Examples of Cost Leadership & Strategy Marketing. Retrieved from http://smallbusiness.chron.com/examples-cost-leadership-strategy-marketing-12259.html Southwest and AirTran Network Connectivity. (2014). Retrieved from http://www.southwest.com/hmtl/air/intl-hub.html
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Air Transport - Passenger Sujan Bharati (student # ) University of Ballarat Professor 05/01/2013 Air Transport - Passenger In the early 1900’s‚ Wilbur and Orville Wright brothers had a vision to fly one day and dream of building a full size flying machine. On December 17‚ 1903 they reached their goal and flew for the first time in Kitty Hawk sand dunes of North Carolina. This was not the first time they tested their invention though‚ they had several attempts before-hand. Their obsession
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