Competing with not only with domestic carriers but also with foreign carriers, Delta Air Lines has to do everything possible in order to win the business. Well-funded airlines in the Gulf regions like Emirates, Etihad and Qatar Airways who increase their services to the United States from their hub in Middle East make it impossible for domestic carriers like Delta to stay in profit ("DAL 12.31.2014 10K," n.d.). Furthermore, these international carriers who are either funded or supported by the government are able to purchase the newest wide body aircrafts. Having a newest fleet amongst its competitors pleases the customers and helps save more fuel on the long haul international flights saving the company money on fuel and increases the customer service at the same
Airlines have the need to serve airports and markets where they can generate sustainable levels of traffic and yield (IATA, 2013). This is particularly true as the airline industry is already highly competitive and coupled with competition that drives lower fares for customers; the need to operate in an airport that revenue potential for airlines is crucial. Population density is one of the factors that affect the choice of airport for airlines. Southwest is a LCC that serves dense, short-haul markets on a point-to-point basis with frequent service (Dresner, Lin , & Wi, 1996). A strategy that LCCs can adopt when expanding is to look out for markets with high density and high GDP and tap on the latent demand of the middle class.
Manchester Airport operates in an increasingly competitive environment and must differentiate itself not only. Finance All organisations must take great care in setting their financial targets. If they are set too low then they will be readily achieved and full potential will not be reached. At present the economic regulation of airports is targeted solely at reducing the charges to airlines. Non-aviation income is not regulated and the Airport, therefore, seeks to encourage the development of such revenue streams to sustain the profitability of the Company.
Physical resources and capabilities 1. Changi Airport Government and SIA had invested in the Changi Airport together. It includes facilities such as hangar, maintenance center, and catering center, those facilities can be used by SIA, but also the customers of other airline company. So those services in Changi airport are not unique for SIA. Airport service is valuable and important for SIA or other airlines company.
• High service quality is key for AirTran to keep a recurring customer-base healthy. • Especially important in AirTran’s low-cost strategy, utilizing planes to their fullest potential is key. • AirTran has a high airport presence throughout eastern United States. • AirTran benefits from a young airplane fleet through cost savings, quality and marketing efforts. Weaknesses • A major weakness of AirTran is its high operating cost per available seat mile compared to other low-cost providers like Southwest and JetBlue.
Southwest has many strong aspects contributing to its success. Its firm operating strategy, strong fleet and dominant market share in North America has kept them in the game along with JetBlue and other competitors. Through the acquisition of AirTran it has gained a great opportunity and expanded its market internationally, which was considered to be one of the things holding them back in the previous years. The company’s very conservative growth strategy, which has delayed its globalization, has also worked in their favor during the economic decline by not becoming involved in an area, which they were unfamiliar with.
This is not something that will change any time soon. Because of this profitability is predominately reserved for low-cost yet distinctive carriers. No consumer wants to ride what they consider a “lesser” airline. Airlines need a way to distinguish themselves from one another while also acknowledging the increased power of buyers. The future of the industry is in JetBlue’s “cheap chic” style.
This allowed them to take advantage of a market, which was often ignored by other airlines. Southwest is not concerned with the prices of other airlines. They do not engage in pricing to meet competition, or pricing below competition. CEO Herb Kelleher stated, “We’re not competing with other airlines. We’re competing with ground transportation.” This philosophy has led them to be very successful because they are priced below the competition, but don’t raise their prices when the competition does.
A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research. 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.
The airline does not serve meals on board, and there are no luxurious or first class seats offered. Services like these have been seen by the airline as unnecessary for an airline that provides a short-haul trip from city to city. By these, Southwest were able to offer low price tickets to customers, which was good for the company because most people would prefer to fly without those services mentioned if it meant for cheaper ticket price. Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets.