Airbus Commercial is one of the four operating divisions of Airbus Group with Astrium, Eurocopter, and Cassadian (see Appendix 1). Founded in 1970, Airbus is now the European leading aircraft manufacturer, offering modern and efficient passenger aircraft on the more than 100-seat market. At the end of the financial year 2013, the commercial division of Airbus recorded 39.89 millions of Euros, which represents more than 65% of the group revenues (Airbus.com, 2014). Currently, Airbus Commercial competes in each of the three principal market segments for aircraft with more than 100 seats. These include: - Single-aisle aircraft, these aircraft have 100 to 210 seats divided by one aisle and are principally used for short-range and medium-range routes.
Jet Fuel accounts for 40% of Emirates operating costs. Few companies supply jet fuel, with BP and Chevron being Emirates main energy suppliers. Although this is not the case with Emirates, other airlines form alliances such as Skyteam and Star Alliance, not only to achieve network size economies, but also bargaining power when purchasing fuel or even aircraft. Intensity of competitive rivalry The global airline industry consists 2000 airlines, 23,000 aircraft and 3700 airports. With negligible switching costs, budget airlines pose a threat.
Airbus has a global network of more than 200 customers, over 1,500 suppliers and around 80,000 annual expense reports. Airbus is focusing global manufacture of the commercial aircraft. Over 40 years of developing technological innovation of its product... ... middle of paper ... ....V. (EADS) Vision 2020 was established in 2007 to provide growth, changes and new goals for Airbus that are to be achieved by 2020. The vision is to have a well-balanced EADS that will include profitability, focus on core, become a worldwide leader in air and space platforms and systems, mission-critical service provider, and become eco efficient. In order to obtain the above balanced revenues must be available and this can happen when EADS reduces dependence on Airbus and increases revenue streams from non-Airbus divisions.
The UAE was ranked first regionally and 11th globally in terms of quality of air transport infrastructure. The technological factors in the UAE has transformed the country as a logistics hub, demonstrating the country’s long term commitment to trade, with investment in infrastructure to reach $130.34 billion by 2016 (MarketLine, 2013a, pp. 5). SWOT Analysis STRENGTHS Its fleet consist of 212 aircrafts, all of its passenger airlines also make services to Emirates SkyCargo, providing air freight services to six continents (Emirates, 2014). Emirates SkyCargo operates 12 freighters, two Boeing 747-400 ERF and 10 777Fs, while also having ordered 3 more freighters (BestCg.com, 2013).
There are an astonishingly high number of different airlines in the business; over 2000 airlines operate in nearly 4000 airports with a total of 23,000 aircraft. Despite the massive competition, several airline companies have managed to maintain profitability and assert their dominance as major players. One of these major players, JetBlue, is
That helped JetBlue carve a unique identity which competed with major carriers for customer service and rivaled low-cost carriers on price points. The company background info as of April 2014 is as follows: Name: JetBlue Airways Corporation (NASDAQ:JBLU) Industry: Air travela CEO: David Barger Headquarters: Long Island City, NY Employees: 15000+ Revenue: USD $5 billion approx. Operating income: USD $428 million approx. Net income: USD $168 million approx. As an airline corporation serving most of the United States and several international locations, JetBlue burst into the scene and grabbed significant market share.
The primary target market of airline passengers today is the business traveler because business trips account for the majority (47% ) of airline flights. Though this percentage of business trips is slowly declining, the actual number of business travelers is increasing. The business traveler fits the description of the average airline passenger of being male, between the ages of 35 and 54, having a household of $60,000 or more and lives in the western region of the country (Airport Transportation Association, Internet). The business traveler tends to be very price inelastic in terms of plane fares and as a result, airlines provide benefits to them such as priority check-in, expedited baggage handling, frequent flier miles and in-flight cell phones to business people to entice them to fly with their carrier. The other segment of the airline market is that of leisure travelers.
In February 2001, most airlines introduced a fuel surcharge to both passengers and cargo tariffs. This surcharge lasted for ten months, until airlines were forced to withdraw, due to falling fuel prices, although this has now been reintroduced. Technological Technology in this industry is fast moving and very expensive. Alliances, give the opportunity for joint investment ventures, such as shared check-in systems.
The United Kingdom has one of the most advanced and complex aviation systems in the world. London, the kingdom capital, is the world most internationally connected city given the range of destinations available from airports located within the city. Furthermore, majority of UK citizens (more than 70 percent of the population) live within less than an hour’s journey from an airport that offers flights to numerous destinations across the world. Nonetheless, the UK aviation industry has experienced major changes in the past two decades. Foremost, the industry was liberalized in 1997 that increased competition in the industry leading to the emergence and growth of low-cost airlines.
Notably, there has been increased number of carriers that offer services at reduced prices. These airlines commonly referred to as low cost carriers have gained popularity in the Asian region and other parts of the world. Dubai, being among the busiest cities in the world, has registered a high number of low cost carriers that offer transport services to both the businesspeople frequenting the busy city and also the tourists. Years ago, the old national airlines provided differentiated services at a higher cost, although the services were better as compared to the services offered by low cost carriers. Therefore, the main purpose of this paper is to evaluate the differences in customer expectations between the services offered by full service carriers and the low cost carriers.