As a regional airline, the company has been offering service to different cities and towns. In order to remain effective in operation and maintain a competitive position in this turbulent industry, there were different significant decisions and steps that have been made to set up the company.
1. The first step was to create a name and background information for the company, such as the contact details of the company’s head offices. As the company has different shareholders, it is effective to include the shareholders’ identity and work experience in order to build trust and commitment from workers, employees and suppliers. To ensure a successful beginning, it is important to determine the company short and long term objectives, and company structure such as partnerships, wholly owned company or joint ventures.
2. For the second step, the company has to consider and make the fare decisions that fit the company’s short and long term objectives, including fare structure (discount, normal or luxury) and set a price of cents per seat mile, as well as level of cabin food/service that is suitable for the target customer. The fare prices must align with the firm’s overall …show more content…
The next decision that the company has to decide was the routes. In the airline industry, there are different types of market, accordance to location, distance, population level. As a regional airline and the customers favor nonstop flights, the company often provided direct service to a hub. Moreover, the number of flights per day is a significant element to the sustainability of an airline because too many flights can be expensive to sustain and too few flights can cause loss of customer to other competitors. As example, it is not cost-effective to provide more than one flight into F or R market because there is no customer loyalty and it would be expensive to operate. Therefore, the balance of seats is an important element because it could create significant impact on the firm
1. The first step was to create a name and background information for the company, such as the contact details of the company’s head offices. As the company has different shareholders, it is effective to include the shareholders’ identity and work experience in order to build trust and commitment from workers, employees and suppliers. To ensure a successful beginning, it is important to determine the company short and long term objectives, and company structure such as partnerships, wholly owned company or joint ventures.
2. For the second step, the company has to consider and make the fare decisions that fit the company’s short and long term objectives, including fare structure (discount, normal or luxury) and set a price of cents per seat mile, as well as level of cabin food/service that is suitable for the target customer. The fare prices must align with the firm’s overall …show more content…
The next decision that the company has to decide was the routes. In the airline industry, there are different types of market, accordance to location, distance, population level. As a regional airline and the customers favor nonstop flights, the company often provided direct service to a hub. Moreover, the number of flights per day is a significant element to the sustainability of an airline because too many flights can be expensive to sustain and too few flights can cause loss of customer to other competitors. As example, it is not cost-effective to provide more than one flight into F or R market because there is no customer loyalty and it would be expensive to operate. Therefore, the balance of seats is an important element because it could create significant impact on the firm