Crowair Plc is a low cost airline operating short routes serving UK regional airports and other airports across Europe. A low cost carrier (LCC) is a type of airline that provides air travel for a lesser fee and with less/fewer comfort (Wikipedia, low cost carrier).To make up for their lower fares the airline charges extra for food and services, baggage, priority seating etc.; this is otherwise known as the ancillary revenue which is an important financial element for a LCC.
Crowair’s objective is to be the leading regional airline in Europe. Crowair has put forward two proposals:
1. An additional service between London and Edinburgh
2. A new service between London and Paris
Planning in such situations is very crucial for the company. …show more content…
Crowair plc should try to create demand which means not only meeting the existing demand but to generate and stimulate new demand by offering low fares and flights to destinations unexplored. [Journal of Transport literature, Manaus, vol.8, n.1, jan (2014), pg 14 …show more content…
In order to maximize its profits Crowair Plc must see which proposal either London-Edinburg or London-Paris will be more cost-efficient for them and market to more customers in the long run. Crowair Plc must look into the prices of their competitors in the market and then formulate a pricing strategy giving them a competitive edge. Pricing Strategy also depends on the demand of customers, target customers, market conditions etc. (smallbusiness.chron.com/pricing strategy) (Colin Drury, MA)The decision that is chosen must satisfy the goals and objectives of Crowair Plc .Having an additional service between London-Edinburg is less riskier when compared with a new service between London-Paris as it is a known route, however a new service to London-Paris will open an entirely new region which can lead to potential opportunities for growth and future developments.
Control is very important to bring a proposal into action. Crowair Plc must not forget to implement control when selecting their best option.
In conclusion it can be