Pricing Analysis Report AIRASIA BUDGET AIRLINE I. Executive summary Budget airline industry Singaporean airlines industry grew by 10.3% in 2007 to reach a value of S$6.5 billion‚ growing by more than 10% up to now. Noticeably‚ low-cost carriers have been the industry’s success story over the past decade. It has won huge number of passengers‚ stealing full-service market share and forcing full-service airline such as SIA to run its own low-cost options such as Scoot
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Corporate Strategy Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce‚ Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry‚ Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short
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The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had opened for newer more nimble carriers with lower cost structures
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Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18‚ 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio‚ short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers
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................20-21 I. Corporate Governance BaronsAir has a dynamic group of people in its management team. Each has their own duties to benefit the success of the airline. Organization‚ responsibility‚ and knowledge will drive the airline and each of the team players to success. was a former manager of Mid-Continent Airlines. The new company re-formed‚ BaronsAir‚ was named after her after she came up with the idea to have the employees buy all the company stock. The three other executives were
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Currently the airline industry as a whole seems to be on the road of recovery. We‚ American Airlines‚ the fourth largest carrier recently avoided bankruptcy‚ but had a summer full of pressure due to ongoing union struggles and questionable executive compensation packages. After having incurred such big losses‚ this recovery has come about because of the government bailout and many of our large competitors’ abilities to survive the turbulence in the industry. So far‚ the prospects look promising
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COURSEWORK 1: The US Airline Industry in 2004 Sommaire Introduction 3 I. The External Analysis 3 1 The macro-environment 3 2 The micro-environment 5 II. The Internal Analysis 7 1. SWOT analysis 7 III. The Strategic choices 9 1. The Bowman’s strategy clock 9 Introduction The US Airlines market experiences ups and downs‚ and different phases; for example the period of regulation up until 1978 and the period of deregulation. The US civil airline was created in 1920‚ but
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Marketing Strategy China Airlines on Guam CASE SYNOPSIS: This is a case study about how a foreign carrier‚ China Airlines‚ adapts it strategy competing in the Guam-based airline industry. The case traces the company’s history on Guam from setting up its regular flight schedule between Guam and Taipei‚ through a pricing competition with its main competitor Continental Micronesia‚ to today where it occupies the sole market share of flights between these locations. In addition‚ the
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Distribution Strategy WS5A4 Southwest Airlines - Case Study Operating under an intensely competitive environment‚ Southwest Airlines carefully projects its image so customers can differentiate its product from its competitors. Southwest positions itself in all its marketing communications as the only low-fare‚ short-haul‚ high-frequency‚ point-to-point carrier in America that is fun to fly (Cheng‚ 2010). Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the
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Generic strategy The three generic strategies identified by Michael Porter‚ namely cost leadership‚ differentiation and focus are all options available to small businesses. cost leadership requires a tight set of interrelated tactics that include aggressive construction of efficient-scale facilities; vigorous pursuit of cost reductions from experience; tight cost and overhead control; avoidances of marginal customer accounts; cost minimization in all activities in the firms value chain. Differentiation
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