South Africa’s airline industry’s companies have been fighting to stay in the black over the past year‚ with SAA getting a R6bn recapitalization (which they claim is not a bail-out)‚ new entrants like Velvet Sky not lasting a full 12 months in the industry and established low cost carrier company Kulula.com’s parent company Comair slipping into the red for the year ended December 2011 (Comair declares six-month loss amid rising costs‚ (n.d)). I will be discussing the macro-environmental forces that
Premium Low-cost carrier Airline Southwest Airlines
SPICE JET AIRWAYS ECONOMICS PROJECT ON SPICE JET 1 SPICE JET AIRWAYS SPICEJET AIRLINES INDUSTRY OVERVIEW At a time when most developed economies shrunk‚ a 4.7% growth during the first quarter of 2009-10‚ puts India among the top-most growing nations. In spite of the global recessionary trends‚ India managed 6.7% economic growth in the fiscal 2009. The growth in the aviation sector is linked with the growth of GDP‚ which according to latest figures released in Dec 2009 has rebounded
Premium Supply and demand Airline Low-cost carrier
Introduction: Price discrimination or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information‚ perfect substitutes‚ and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage‚ price discrimination can only be a feature of monopolistic and oligopolistic markets‚ where market power can be exercised. However‚ product heterogeneity‚ market
Premium Supply and demand Price elasticity of demand Elasticity
Airline industry value chain Inbound logistics Primary activites Stock control airlines must store and handle fuel‚ food‚ and drinks. Stock is managed to ensure reductions in stock turnover‚ thus reducing costs and wastage. Route selection airlines must choose their flight routes. These will be selected upon desired routes‚ and deals negotiated with the airports. Airports are selected for their prime location‚ to allow consumers to get to their desired location. This then entails the
Premium Airline Low-cost carrier Service
The World Airline Industry A European Perspective (Case Study) MCS-M-160 International Strategy Student Name: Siyuan Li Student ID: 2800712 Unit Coordinator: Robin John Question 1 Through PESTEL analysis‚ identify the major external environmental drives influencing the airline industry. Since the end of the case (2003)‚ to what extent have these driving force changed? Question 4 Analysis the business model of the low cost airline‚ discuss their
Premium Airline Southwest Airlines Low-cost carrier
Current Situation of Airline Industry Since the airline industry was deregulated in the late 1970s‚ they shall hold the line on the number of planes they fly. The result is that the people by plane shall be more and more‚ and the fares shall become expensive. Because air transport is faster than other transportation methods‚ the people increasingly prefer to fly. The air transportation shall be an important transportation method in the future‚ and the people engaged in air transportation shall have
Premium Airline Cost Avianca
financial crisis and other factors‚ especially the oil price‚ that is the most major factor of the airline cost‚ and still increasing‚ made the airline industry’s production decline shaply. The main source of profit for the airline industry are passenger and cargo revenue primarily‚ in addition‚ the fuel surcharges and exchange gains constitute the major part of its profits. According to these factors‚ airline companies will make a expection development whether they can benefit or loss‚ and they will
Premium Airline Air France International Civil Aviation Organization
Title: The US Airline Industry in 2007 After years of losses the Us Airline industry is finally beginning to rebound from the 9/11 tragedy which saw negative profits at an all time high. The US airline industry is coming off a profitable 2006 and is determining what strategy is best to sustain such profits. With the industry’s abysmal past‚ companies need to make 2006 a fresh start and not slip back into past performance. Since profits in the industry have not been seen over the long haul
Premium Supply and demand Airline Southwest Airlines
The airline industry has developed immensely over the past few decades with aircraft being a major mode of transport for the mass movement of people. This is down to entrepreneurs such as Herb Kelleher‚ Michael O’Leary‚ Freddie Laker and Richard Branson who have all contributed in the growth of the industry and made it into the multi-billion pound industry that it is at present. There are four types of flights that make up the airline industry as a whole; Scheduled‚ Charter‚ Low Cost and Freight
Premium Southwest Airlines Airline Low-cost carrier
Abstract The airline industry is known to be the fastest mode of transportation throughout the United States. Consumers are constantly trying to find cheaper fares‚ while airliners are constantly analyzing consumer’s trends to decide how to charge fares. Airliners ultimate goal is to increase revenue. Sometimes the increase can lead to bad service and unfriendly competitive practices. The present day airline industry is dominated by larger air carriers. This paper will discuss why the airline industry
Premium Airline Southwest Airlines Pan American World Airways