AirAsia: “Now Everyone Can Fly” I. Introduction AirAsia is a Low-fare airline company owned by Anthony Fernandes. The company had its beginnings since 2001 and has been growing rapidly ever since. Within two years‚ AirAsia has proven that low-fare airline models such as Southwest’s‚ Ryanair’s‚ and easyJet’s model would fare well in the Asian marketplace. Its success has even spawned numerous imitators and competitors. But the question still remains‚ can the low-fare model continue to succeed
Premium Airline Low-cost carrier Southwest Airlines
3007 Air Transport Logistics Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States‚ where it was pioneered in the 1970s by Southwest Airlines‚ the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel‚ online ticket sales‚ no international offices
Premium Airline Low-cost carrier Southwest Airlines
References: Baker‚ J.‚ Michael Levy and Dhruv Grewal (1992)‚ “An Experimental Approach to Making Retail Store Environmental Decisions‚” Journal o f Retailing‚ 68‚ (Winter)‚ 328-339. Bitner‚ M. (1992)‚ “Servicescapes: The Impact o f Physical Surroundings on Customers and Employees‚” Journal o f Marketing‚ 56‚ 57-71. Holbrook‚ Morris B. (1986)‚ “Aims‚ Concepts‚ and Methods for the Representation of Individual Differences in Esthetic Responses to Design Features
Premium Environment Retailing Natural environment
own signature touches. Where both offer services by either the owner or lead makeup artist and added services such as pre-bridal touch ups. Place - Both firms offer direct sales‚ where the consumer has to go in order to avail these services. The servicescape and the layout of the salons are efficient and hygienic. One tends to be compacted‚ whereas‚ the other despite the number of customers still has room to move about. Price - Since‚ clients would not narrow down these two salons‚ without considering
Premium Service of process Service Service system
OASIS HONG KONG AIRLINES LIMITED – WHAT WENT WRONG AND WHAT SHOULD HAVE DONE TO SAVE IT FROM BANKCRUPTCY Table of Content 1. 2. 3. 4. 5. 6. Company Background Liquidation Timeline Causes of Failure Impacts of Oasis’s Case What Should Have Done to Save Oasis from Bankruptcy Conclusion Company Background Oasis Hong Kong Airlines Limited • Long-haul budget airline • Hub at Hong Kong International Airport • Founder Mr. Raymond Lee Ms. Priscilla Lee • Started operation – Oct 26‚ 2006 Company
Premium Low-cost carrier Airline Cathay Pacific
Brazil’s Gol Linhas Aereas Inteligentes (Smart Airlines) GOL Linhas Aéreas Inteligentes (Smart Airlines) Established: 2001 Headquarters: Sao Paulo‚ Brazil Fleet: 127 airplanes‚ all 737s‚ including 737-300s and Next- Generation -700s and -800s. Customer base: Using a discount model similar to Southwest Airlines in the U.S. GOL holds about 35 to 40 percent of the domestic air travel market. Since launching operations‚ GOL has been South America’s fastest-growing airline. GOL’s initial fleet: 25
Premium Stock exchange Initial public offering Boeing 737
strategy has for aim to become the lowest-cost organisation in a domain of activity. For instance‚ in order to achieve cost leadership‚ input costs need to be low or there has to be economies of scale. For example‚ Liddl (supermarket industry) or Ryanair (air travel industry). The differentiation strategy involves uniqueness of a product or service that is sufficiently values by the customers to allow a price premium. For instance‚ Jumbo (supermarket industry) or KLM (air travel industry). The third
Premium Porter generic strategies Strategic management
Topic: Total Quality Service Summary: Total quality service and total quality management as a business strategy designed to add value to customers. It begins by discussing the roots of quality assurance and total quality management‚ and TQM. Also‚ it is to explore the relationship between total quality management (TQM) practices and service quality as well as the relationship between TQM practices and market orientation. However‚ most of what has been written on TQM is usually related to manufacturing
Premium Management Strategic management Trigraph
implement due to conflict between cost minimization and cost of value-added differentiation. Post-Porter(1980) research indicates companies pursuing differentiation/low-cost strategies may be more successful than companies pursuing only one strategy. (RyanAir/EasyJet/Dell) low cost strategy rarely able to provide a sustainable competitive advantage - firms end up in price wars. best cost strategy is preferred - best value for low price. CLS - winning market share by appealing to cost-conscious/price-sensitive
Premium Porter generic strategies Strategic management Marketing
good management exercised‚ perhaps combined with an element of Napoleonic luck on the part of the individuals running these companies. The importance of low cost carriers as major suppliers of air services in short-haul markets is exemplified in by Ryanair being the larger movers of air travelers within Europe‚ and Southwest having the same position in the United States. Low-cost airlines are also becoming significant factors in airport planning. Their requirements differ from those of ’legacy ’ carriers
Premium Low-cost carrier Airline Southwest Airlines