Low cost‚ long haul model * Low cost: an airline that offers low fares in exchange for eliminating many in-flight services to passengers. * Long haul: more than 6 hours flight in general‚ but the definition is very elastic. * Target market: leisure‚ time and price sensitive business travellers Current issue * A swiss regional airline Baboo is planning to launch a new long haul‚ low cost and europen-based airline FlyA in summer 2013‚ with transatlantic operation to the east
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Strategy and Leadership The following assignment is based on the Case Study below “Ryanair: the low fares airline- future destinations?” By Elanor O’Higgins Questions to be discussed: I. Critically Review the leadership style of Michael O’Leary. II. Review the concept of value chains and core competences and explain how knowledge of these concepts might assist Ryanair in its strategic development. III. Consider using suitable models the competitive position of Ryanair. [Note:
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INTRODUCTION AND HISTORY AirAsia is a very successful low cost carrier. In a very short time‚ it became a market leader in the Asia region. The company successfully adopted cost leadership through operational efficiency and effectiveness. Using the slogan “Now Everyone Can Fly‚” AirAsia positioned itself successfully in the niche LCC market. AirAsia was the creation of former music publisher Tony Fernandes. After watching a television show in a pub about easyJet successfully competing against British
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Grant‚ Robert M. Case Studies Section : case 9‚ Air Asia : The world’s lowest cost airline Grant‚ Robert M.‚ (2010) "Case Studies Section : case 9‚ Air Asia : The world’s lowest cost airline" from Grant‚ Robert M.‚ Contemporary strategy analysis : text and cases pp.625-635‚ Hoboken: Wiley © Staff and students of Edinburgh Napier University are reminded that copyright subsists in this extract and the work from which it was taken. This Digital Copy has been made under the terms of a CLA licence
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Travelling by air has become cheaper with the number of budget airlines and the many deals that even the major carriers put out from time to time. It makes it easy to travel on a budget. However there are some costs attached to travelling that seem to be unavoidable like airport parking. Melbourne airport parking is ranked as the second most expensive in Australia. The trend seems to be that the bigger city the higher the airport parking fees are likely to be. Airports collect a lot of revenue from
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associated with managing in a business with high fixed costs like airlines? To understand the challenges firms face with regard to high fixed costs we must first have a basic understanding. A fixed cost is a routine cost the company incurs despite production‚ and changes in volume. It is a cost that must be paid routinely‚ but the amount of the expense may vary. Firms with high fixed costs must have complete understanding of what fixed costs exist that will be incurred‚ and how much revenue they
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Ryanair use its supply chain to keep cost down and how does this emphasis on cost control affect its relationship with the end customer? Introduction In the 1980’s the first low cost carriers started expanding their operations into mainland Europe. Previously the concept of flying from London to Barcelona on a regular basis would have been very costly and timely on the incumbent scheduled carriers. The emergence of new low cost carriers transformed these and other routes
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business environment‚ your low cost carrier (LCC) is in financial difficulty. As the CEO of this LCC‚ you however believe that if the airline manages to control the cost‚ your airline can survive. You therefore decide to reduce the operating expanse including the labour cost but you would avoid lay-offs. What cost reduction measures would you implement and why? In airline industry‚ the cost can break to two parts: fixed cost and variable cost. And there is very hard to
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The High Cost of Low Prices Summary The activist Robert Greenwald produced a documentary named Wal-Mart: High Cost of Low Prices to enlighten Americans of the effects this major company has on society. In this documentary‚ Greenwald interviews former employees from different ranks. Greenwald also uses crime rate statistics to demonstrate the lack of surveillance in the parking lot of the store. The producer also interviews the Chinese factory workers who are exploited in China. He also points
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Indonesian Muhammad Fikri‚ 28‚ studying in the Netherlands‚ bought round-trip tickets from a low-cost airline for his solo trip to Italy this month. Fikri‚ who worked in a social business institution in Jakarta last year‚ was an avid backpacker exploring Asia on low-cost carriers. “I don’t have a huge budget‚ but I do have some money spare to travel abroad‚” he said. Many middle-class Indonesians are using their disposable income for travel and Fikri is one of them. The Transportation
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