How budget airlines keep their costs low • A plane ticket that costs less than half the regular fare. • A plane ticket that costs less than the train fare to the same destination. • A plane ticket that costs Re 1. Even two years ago, if someone had offered these prices to you, chances are you'd have asked them what banned substance they were on. Today, they all exist. You can fly SpiceJet from Delhi to Mumbai for Rs 99 or Air Deccan from Delhi to Bangalore for Re 1.
In lights of the PESTLE model, the political factors bring both opportunities and threats to Jetstar’s new proposal. Since this proposal focus on the Australia-India low price airline market, the analysis conducts involving Australia and India political environments. There are two potential opportunities in this political environment. Firstly, the Australian government has the incentive to boost the development of tourism between the two countries (Tourism Australia 2012). With the support of government, the start of the new route could be easier. For example, American government erects legislation to increase competition of the airport ‘by forcing these airports to increase the availability of scarce facilities’ (Williams 2015). Such legislations and regulations as well as financing investment or subsidies from government could directly help the airline company cut the cost. Similarly, Australian government could also have powerful intervention to influence aviation market. Thus, it is a big opportunity for Jetstar to the new route expansion if it acquires the
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the
When Frontier got its “restart” back in 1994, the idea was that the airline would be a small, regional airline. After going through many ups and downs associated with the cyclical nature of the airline industry and facing Chapter 11 bankruptcy, Frontier needed to change some things. Finally, in 2013, Indigo Partners acquired Frontier Airlines and immediately began the process of making the airline an ultra-low-cost-carrier or ULCC. Frontier is still facing the growing pains of being a ULCC and is still trying to get settled in. Some of these growing pains include having to compete within the same market against other ULCCs like Spirit or Allegiant, and also against the big airlines that feel the encroachment of the ULCCs on their market shares,
This report was complied in April 11, 2017 by Chen jiayi according to the request of Cheng Li, Course Leader. The aim of the report is to evaluate the customer care strategy at China Southern Airlines and to make recommendations for improvement.
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
to major airports but later it went down as PE try to grow faster and
Air India has gone through this process very strongly and it is very committed with society and on every big event, they are providing the reduce price to keep the customers with the company. On the other hand, this airline is providing the huge income to the economy as the tax for which got has recently accounted to provide the less tax on buying new fleets. Company varies with the suppliers as the supply of fleets is not often therefore company focuses on the different suppliers which provide them the best price.
Singapore Airlines Limited (IATA code: SQ/ SIA) is the national carrier of the Republic of Singapore which operates from its hub at Changi Airport, Singapore. Singapore Airline is a prestigious member of Star Alliance which consists of airlines such as Scandinavian Airlines and Lufthansa. The Singapore Airlines group has also diversify to cover over 20 airline-related subsidiaries businesses ranging from aircraft handling to travel agency. Singapore airlines is also the world second best airline in the year 2014 only behind Qatar Airways, an award given out by Skytrax, a consultancy and reviews site. (Channel News Asia, 2015) Singapore airline currently hire cabin crew over 9 countries.
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.
For instance, global economic downturn aircraft leasing costs were reduce by about 40%. Creating an environment with lesser competition and enabled AirAsia to lease their aircraft at a cheaper rate and it will leading to cheaper ticket prices for customers. Last several year, economic growth rapidly resulted in a burgeoning middle class within Asia’s large population. Demand for air travel increased together with increased. More people were willing to compromise on food and other services in exchange for lower prices. The attractiveness of budget airlines is primarily their lower ticket prices, which can be as low as 10-20% of those charged by full-service airlines. This presents AirAsia with opportunities to differentiate itself with competitors by adding customer services or operation as full service airline with low fare. It give it a competitive advantage and corporate travel services with its own branded credit card by further increasing brand awareness and value for
Jet airways India’s second major airline in terms of market shares after Indigo airlines based at Mumbai known as India’s economic capital in addition to being its India’s widest network with 3000 flights a day with 76 destinations worldwide, main operations are handle from Mumbai but secondary hubs are Delhi (Nation Capital of India) Kolkata and Bangalore, It has an international hub at Brussels Airport, Belgium.
AirAsia can enter to the market like Thailand, Malaysia, Indonesia, Japan, Hong Kong and so on. Those countries are included in the list of destinations that AirAsia offer. AirAsia offers 88 destinations that let the customers to travel along these places. (AirAsia, 2015) Therefore, AirAsia can slowly enter to the market from country to country. AirAsia is mostly travelling to the Asian countries; therefore AirAsia should enter the Asia market with the brand new Auto-inflate lifejacket with additional features. This may be attracted by the public of the Asian countries.
Stress is all about your body’s way of responding to any kind of threat or demand. When your body feel threatened, then your nervous system will responds by releasing a flood of stress hormones, including cortisol and adrenaline, which rouse the body for emergency action. Your heart will pound faster than before, your blood pressure start rises, your muscles become tighten, your breath becomes quickens and lastly your senses become more sharper. These physical changes increase your strength and stamina, enhance your focus and speed your reaction time. “Flight or flight” or also known as mobilization stress response and your body’s way of protecting you.
One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch the flight as it is a journey to specific destinations. They might be able to touch the plane, but in the context of services, the customers do not own the physical tools or equipment used to deliver the service but are only entitled to get the service which is the flight service.
In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry: