Company Airlines: Transition into a New Low-fare Carrier
Part A
Recently, the low-cost market has become the fastest growing airline sector and one of the most popular ways of travelling and organizing our private and business needs. Fair Skies Airlines are going to become a low-cost company offering low tariffs in exchange for eliminating many services which used to be included into the fare. Before the amendments take place, the detailed evaluation of the closest competitors should be done.
Norwegian Air Shuttle is one of the largest low-cost carriers in Europe offering flights within Europe, as well as to/from the United States, Mediterranean and Canary Islands. For example, Norwegian Air Shuttle promotes low fare tariffs that start at $256 …show more content…
is an American low-cost carrier managing flights throughout the United States and in the Caribbean, Latin America, and South America. Despite some negative feedbacks, Spirit remains one of the most popular low cost airlines in the United States with revenues. The Spirit Airlines offers many options for customizing their base ticket price, each of which carries a charge. Thus, for example, an agent has to print out a boarding pass at check-in instead of doing it online or at a kiosk, carry-on or checked bags, along with overweight bags, seat assignments, travel insurance are followed by extra charge. The Spirit's concept is to lower basic fares as much as possible, and then to charge customers for almost every conceivable extra. Spirit Airlines is still attractive for potential customers due to the lowest fares on the routes they fly, if to book on their own website (“About Us”, 2016).
According to the low-cost airlines’ philosophy, a discount fare can be identified as a low tariff, including all fees and taxes charging extra for additional services as luggage, seat reservation, travel insurance, etc. This idea is supported by print media, namely, official magazines of Norwegian Airlines and Ryanair.
Part B
The SWOT analysis for Fair Skies Airlines illustrates significant internal strengths that have to stand against equally significant industry threats and weaknesses that should be transformed into opportunities.
Strengths Weaknesses
1. Price structure …show more content…
Thus, the SWOT analysis allows avoiding making mistakes and following the strategies that will not be effective. According to the information gathered in the SWOT analysis, we can create a survey in order to check customers’ reactions on the upcoming changes. The survey is aimed at getting feedbacks on prices, convenience and extra services offered by Fair Skies Airline. Afterwards, the information will be evaluated and the necessary amendments can be made before the official
Part A
Recently, the low-cost market has become the fastest growing airline sector and one of the most popular ways of travelling and organizing our private and business needs. Fair Skies Airlines are going to become a low-cost company offering low tariffs in exchange for eliminating many services which used to be included into the fare. Before the amendments take place, the detailed evaluation of the closest competitors should be done.
Norwegian Air Shuttle is one of the largest low-cost carriers in Europe offering flights within Europe, as well as to/from the United States, Mediterranean and Canary Islands. For example, Norwegian Air Shuttle promotes low fare tariffs that start at $256 …show more content…
is an American low-cost carrier managing flights throughout the United States and in the Caribbean, Latin America, and South America. Despite some negative feedbacks, Spirit remains one of the most popular low cost airlines in the United States with revenues. The Spirit Airlines offers many options for customizing their base ticket price, each of which carries a charge. Thus, for example, an agent has to print out a boarding pass at check-in instead of doing it online or at a kiosk, carry-on or checked bags, along with overweight bags, seat assignments, travel insurance are followed by extra charge. The Spirit's concept is to lower basic fares as much as possible, and then to charge customers for almost every conceivable extra. Spirit Airlines is still attractive for potential customers due to the lowest fares on the routes they fly, if to book on their own website (“About Us”, 2016).
According to the low-cost airlines’ philosophy, a discount fare can be identified as a low tariff, including all fees and taxes charging extra for additional services as luggage, seat reservation, travel insurance, etc. This idea is supported by print media, namely, official magazines of Norwegian Airlines and Ryanair.
Part B
The SWOT analysis for Fair Skies Airlines illustrates significant internal strengths that have to stand against equally significant industry threats and weaknesses that should be transformed into opportunities.
Strengths Weaknesses
1. Price structure …show more content…
Thus, the SWOT analysis allows avoiding making mistakes and following the strategies that will not be effective. According to the information gathered in the SWOT analysis, we can create a survey in order to check customers’ reactions on the upcoming changes. The survey is aimed at getting feedbacks on prices, convenience and extra services offered by Fair Skies Airline. Afterwards, the information will be evaluated and the necessary amendments can be made before the official