Introduction The aviation industry has undergone big changes in a short period of time. The major change appeared in this industry is the generation of low cost carriers over the past two decades. A low cost airline is an airline that provides the cheapest airfare to different destinations in different parts of the world. The low cost airlines play an important role in the airline industry. It is very useful to the passengers as they are getting air tickets for affordable prices. Here we are analysing about the low cost airline Jetstar and full cost airline Air New Zealand. Jetstar is the low cost airline of New Zealand which provides air travel to New Zealand, Australia and some …show more content…
The services given to its passengers by Jetstar can be classified as inflight services and the services outside the flight. The services outside the flight include all the processes until the passenger is on-board. Jetstar Airlines offers a number of domestic flights to travel inside New Zealand with very cheap fares. All the tickets are to be booked online. Jetstar is providing very low cost air tickets compared to Air New Zealand. Air New Zealand is a full cost airline having domestic and international flights throughout New Zealand and so many other countries in the world. When comparing the ticket rates Jetstar is offering a domestic air ticket with almost half of the price of ticket offered by Air New Zealand. The cost of air tickets vary according to season, weekdays and weekends. In weekends and some seasons the domestic and international airfares of both airlines becomes too high. Air New Zealand is having at least eight domestic services each day. The Jetstar Airlines may have at most four domestic services. Cost comparison of Jetstar and Air New Zealand domestic flights Date of Journey Jetstar Airlines Air New Zealand 27 Jul, Monday $ 69 $ …show more content…
For carry-on baggages the weight is limited and too low in Jetstar Airlines. In the economy class the baggage weight is limited up to 7 kg and for business class it is up to 14 kg. For excess weight of carry-on baggage additional charges are applied. For checked baggages an additional pay is needed at the time of ticket booking. In low cost airlines if the passenger is transferring between domestic to domestic flights, domestic to international flights, he himself has to transfer the baggage. The passenger is needed to collect the baggage, check in again and transfer the luggage. When looking on the inflight services of low cost airlines, they charges extra for boarding priority, food and drink, and other services so that they can overcome the loss of revenue by providing low cost air tickets. For business class passengers Jetstar provides dedicated check-in and priority boarding, extra baggage, dedicated cabin and staff, comfort pack, entertainment, lounge. For economy class food and drinks has to be purchased on board. And also these drinks and snacks are offered according to the availability. For having entertainment the passengers have to take an entertainment unit and a headset on rent. Comfort packs also can be
Air Canada has deliberately set its self around the domestic and also worldwide market of carrier industry. The aircraft has substantiated itself as a superior Canadian brand becoming a part of Star Alliance, joined different famous carriers such KLM, Lufthansa carrier, Thai aircraft and so forth. Moreover, Air Canada has code offering consent to in excess of 26 aircrafts including Swiss Airlines, Singapore Airline, Etihad Airways et
Their extra space sit it may cost a little bit more; however customers don’t have to pay for a double sit price. Although I am don’t agree with the policy base on heavier customers. People must be aware that airlines, works base on weight regulations they have to have the exact amount of weight that way the impact of incorrectly calculating an aircraft’s load increases in significance as the size of the aircraft decreases and thus the contrary effects of underestimating loads are likely to affect smaller piston airplane much more meaningfully than large jet-powered aircraft. Another example is International airlines such as Air Canada addresses this issue more amicably: Because the airline considers obesity a medical condition, it provides overweight passengers with a free extra seat as long as they present a doctor 's note. (Barnes,
Mason, K. J. (2001). "Marketing low-cost airline services to business travellers." Journal of Air Transport Management 7(2): 103-109.
Spirit addresses “price” by attempting to get the lowest possible fair for their potential customers. They have instituted their “unbundling” strategy that essentially removes all the conveniences that other airlines afford. Fees for checked bags, fees for flight changes, and no complementary in-flight beverages are just a few of the cost-trimming techniques employed. This strategy allows Spirit to come up with impossibly low fares. It also conforms to customers who just want to get from point A to point B without paying extra for services they don’t use. This strategy, coupled with an in-your-face “promotion” ploy, has made Spirit Airlines “the most profitable airline in the U.S.” (Nicas, 2012).
Having a low cost of operations is one of the contributing factors to Southwest Airlines’ financial success. Such low cost model of the corporation is brought about by an effective strategy. Southwest uses only one type of aircraft – the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs down. Moreover, the no-frills approach to customer service contributed to the low cost of operations for Southwest.
Jetstar was the vision for change for Qantas. It was the introduction of a low-cost airline that would prove to be beneficial for the company. Qantas saw that Virgin Blue was successful, so introduced their own.
Air Canada is Canada's biggest aircraft and the biggest supplier of booked traveler benefits in the Canadian market, the Canada-U.S. Trans outskirt showcase and in the worldwide market to and from Canada. In 2015, Air Canada together with its Air Canada Express provincial accomplices conveyed more than 41 million travelers, offering direct traveler administration to more than 200 goals on six landmasses. Air Canada is an establishing individual from Star
Use of technology and automated processes to reduce reservation, ticketing and customer services costs. Paperless cockpits, use of e-manuals, electronic ticketing, owning its own in-flight entertainment provider, automated baggage handling are some of the examples where Jet Blue’s use of technology has lowered operating costs.
AirAsia Berhad is a Malaysian low-cost airline based in Kuala Lumpur, Malaysia. It has been named as the world's best low-cost airline, and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 100 destinations across 22 countries. AirAsia has risen exponentially since its purchase in 2001, as a result of its confluence of opportunity and its application of the Low-Cost Carrier business model (Poon & Waring, 2010).
...its competitors. -Hubbing: With hubbing, flights from various origins on spokes of the network are channelled through an intermediate location, where they change planes and are re-routed to their final destination. This way the airline can serve more locations with fewer planes. -Frequent Flyer programmes: These programmes provide discounts or bonuses to frequent travellers. The value of the bonuses increase as the mileage flown increase, the bonuses can take various forms such as, fare reductions, upgrades to better classes or even free tickets.
With regard to product, JetBlue is cornering the marketplace with its productivity, in-flight features, and customer service. Due to the fact that the company only purchases new planes of a single type, maintenance downtime is reduced and it is able to keep its planes in the air. In fact, JetBlue maintains the highest in-air average in the industry. Additionally, JetBlue employs an "operational recovery tool" technology that allows planners to minimize flight cancellations and delays. On board, JetBlue prides itself on treating all customers as equals and providing more comfort than other airlines.
service stand point but also for the price of fares and the amount flights offered to the more
.British Airways were the pioneers with the introduction of space beds. To keep the Singapore Airlines to continue be a leader in providing the greatest comfort service to customers, it is our recommendation that Singapore Airline should continue with the installation of the space beds as this will keep them on top of the game with their main competitors. Furthermore, for an airline's long term Business Class customers to be taken seriously, the company should offer the comfort, of either the same value or even higher, to their customers. The drawback of the larger seats (space beds) would decrease the number of seats in the business class area of a jumbo jet from 58 to 50. However, installation of spacebeds ( in long term) will hopefully bring higher income to the Singapore Airlines because of the higher seat utilization.
Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides.
...d these needs. But the customer preference keeps changing and for example the customers might expect to have internet connection during the flight in order to finish their work related tasks. By having a customer study group constantly analyzing the customer needs and modifying the operating procedures to match with the needs, JetBlue can align itself to the external environment effectively. During the initial stages, all the employees were happy and identified themselves with the company culture since it was a nice challenge and fun to start from scratch and build a new airline during tough times. By effectively promoting team work and managing the employees in small teams, JetBlue can instill the small company thinking in the employees and continue to create a positive environment for the employees.