Risk management in Kingfisher Airlines PART 1 Problem statement and background 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.
Introduction Strengths Ryanair is known as Europe’s first low-cost, no-frills airline company. This alone is one of the company’s strongest selling points. It carries around 34 million passengers a year across 107 locations round Europe, totalling some 266 routes. The company has a leading market share on most UK and Ireland routes and around 43 percent of all Dublin-London and 45 percent of all other Dublin passenger loads. The ‘no-frills’ strategy resulted in the increase of customers and expansion of their operations, wherein the staff increased from an initial 57 to an amazing 3,400 staff and almost 37 million passengers.
Ryanair carried 5000 passengers during the first year. In 2012, the airline carried more than 79 million passengers. Ryanair has demonstrated consistent growth and profit with the exception of 1991 and 2001(Ryanair, 2013). Ryanair was founded with the intent of breaking up the air travel duopoly held by British Airways and Aer Lingus at the time (Ryanair, 2013). There isn’t a doubt that the goal was accomplished and continues to evolve.
1. Describe the type of international strategy the company has chosen. Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government.
Airbus and Boeing are seen as national symbols that receive massive subsidies, benefits, contracts from the EU and the American government. This book gives a review of both Airbus and Boeing’s objections and future market outlooks in relation to the new A380 and Boeing 787 “Dreamliner”. This report outlines some of the key factors in John Newhouse’s Boeing Vs Airbus thriller. BACKGROUND INFORMATION OF AIRBUS AND BOEING Airbus has been in business for a little over 30 years and is jointly owned by European Aeronautic Defense and Space Company-EADS (80%) and BAE systems (20%) which are two of the largest defense contractors. Airbus now a single company, headquartered in Toulouse France, began as a French-German consortium in 1970 that was soon joined by Spain and later Britain.
UPS announced it would be taking over all air operations in 1988 and using the IPX certificate as the basis for UPS airlines. UPS Airlines started on January 28th 1988. Ten months after receiving the operating certificate from the FAA, UPS Airlines had grown to an operation of 94 aircraft. UPS airline was the fastest growing airline in FAA history. Financial performance and current economic standing UPS has always been a cost conscious business.
Emirates Fleet Age (Emirates, 2013) Emirates SkyCargo is strategically located in Dubai International Airport at the crossroads of Europe, Africa and Asia. Reaching 3.5 billion customers in less than eight hours (Maier, 2005). The airport is the largest airline hub in the Middle East, making it the 6th busiest cargo airport in the world transporting 2.3 million tones (Global Company Intelligence, 2014). The state of the art terminal, with its end to end IT cargo management system Sky Chain, offers Emirates customers a range of business logistics technological solutions (Emirates, 2014). WEAKNESSES Foreigners represent 91% of UAE’s small 9 million population (MarketLine, 2013a, pp.
In 1986, Ryanair broke the placard of high rates operated then, in the route Dublin-London, by the two national airlines, Aer Lingus and British Airways. Between 1975 and 1985, the route Dublin-London had been stopped in, more or less, a 1 million passengers per year and was characterized for charging one of the most expensive rates in Europe. In 1985, before Ryanair to appear, the normal price of the roundtrip bill Dublin-London was of £209. Ryanair began to lend its services May 23, 1986, with two airplanes turbo prop BA 748 and a roundtrip inaugural rate of £94.99. The trip in airplane among Dublin and London never would return to be the same thing.
EasyJet is a low cost airline officially known as EasyJet Airline Company PLC. The company is based at London Luton Airport. It operates frequent scheduled services for leisure and business passengers and serves more than 200 routes between more than 60 European airports. The company listed on the London Stock Exchange and easyGroup owns only a minority stake. EasyJet and its Republic of Ireland based rival Ryanair are by far the largest low cost airlines in Europe, and the rivalry between them is intense and sometimes vituperative (especially on Ryanair's side from its high profile chief executive Michael O'Leary).
Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary according to how much product is produced (Mankiw et al, 2012). This reduces the profit that will gain from airline services (Cathay Pacific, 2013). Vice president, global airfreight services for UPS Supply Chain Solutions: “Every air cargo service provider has introduced surcha... ... middle of paper ... ...ling but they save some of it. In addition, the Group reported profit of HK$2620 million in year 2013. Nevertheless, due to high price of jet fuel, the shares of profits from non-airline subsidiaries and from associates decrease by 30% from HK$1,126 million to HK$781 million (Cathay Pacific Airways Limited, 2013).