Low-cost carrier

Southwest Airline Background Southwest Airlines is the largest low-cost, commuter airline measured by number of passengers carried each year within the United States. Southwest Airlines is known as a “discount airline” compared with its large rivals. In late 1966, Rollin King, a San Antonio entrepreneur who owned a small commuter air service, came to see Herb Kelleher at the latter’s law office with a plan to start a low-cost, low-fare airline that would shuttle passengers between San-Antonio,…

broad spectrum of markets in order to sell commercial aircraft. According to Boeing, 80 percent of its orders for commercial jets come from international carriers (Seil, 2011). In order to accommodate these orders, Boeing does not have to overhaul specific airframes in order to suit each individual carrier’s marketing needs because the carriers usually outfit the aircraft to meet their needs (Seil, 2011). However, Boeing does not ignore the needs of its global customers, but Boeing looks at…

are looking for low airfares to travel to their destination, safely and comfortably. AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness of AirAsia’s low cost strategy in adding value to their customers and achieve greater cost-efficiency.…

entirely due to the recessionary economy. Growth and expansion are new initiatives under CEO Gary Kelly, and Southwest is pushing its way into new cities where other airlines have formerly dominated (Zellner, 2005). Southwest has also bid on bankrupt carrier Frontier Airlines, which it would operate as a wholly owned subsidiary for two years, keeping its Airbus aircraft and personnel intact (Bachman,…

Ryanair have the lowest cost base, in the European short haul flight markets, Ryanair also has the lowest average fares. The average fare is 37% lower than easyJet. Ryanair increases its fares over the years, but they still hold its symbolic prices. The reasons for their increase are including the competitor capacity restraint and fuel surcharges, and slower growth of Ryanair during winter when there's capacity cut. Another strength of Ryanair is airport choices. With its low fare strength,…

Risk Management through cost control - Aviation Industry G.Rajesh1, Yamuna Krishna2 1. Ph.D Scholar, School of Management Studies, Hindustan University. 2. Head, School of Management Studies, Hindustan University. Introduction: It is a well-known fact that aviation sector not only brings immense benefits to communities and economies around the world, but also acts as a key catalyst for the overall economic growth, social development and tourism thereby facilitating connectivity and access to…

Fly Dubai Dubai Aviation Corporation, under the brand name Fly Dubai is a low-airline fully owned by the Dubai Government with its main hub and flight operation center at Dubai International Airport Terminal 2. Fly Dubai was originally established in July 2008 by the government of Dubai (Flydubai.com (1), 2014). Emirates supported Fly Dubai during the establishment phase, though it is not part of the Emirates Group (Hofmann, 2014). At the Farnborough Air Show on July 14, 2008, Fly Dubai placed…

are looking for low airfares to travel to their destination, safely and comfortably. AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness of AirAsia’s low cost strategy in adding value to their customers and achieve greater cost-efficiency.…

3.1) Strengths: • It has the membership of the Arab Alliance, also called the "Arab Air Carriers Organization" • First introduced E ticketing system • Made available self check in at air ports • Largest purchaser of Jumbo Airbuses and aircrafts and has 45 of the Jumbo Airbuses till date • Well focused on giving quality training, reimbursement…

performers in the sector over the last five years. But United is the founding member of Star alliance, which is comprised of 27 different airlines, totaling more than 22.5 billion and quarterly earns of 9.9 billion. This place United as the largest U.S. carrier. But, where United has expanded, Delta is still the best-performing airlines in the world. Delta, is known for their customer care and luxury, and maintaining its upper middle class and business travel customer base. While United…