Kuwait Airways

Yield Management Yield management originated in the air craft industry back in the end of the 1970. People’s Express startet the new trend, and sold their tickets at a lower fare than the competing airline companies. To not lose the price conscious customers to People’s Express, the competing airline companies followed this trend and sold cheaper plane tickets to the price conscious. This is the most important principle in yield management; to sell the right product to the right customer to…

High Costs and Small Margins Thanks to technological advances, the airline industry boomed in the second half of the twentieth century. As the industry grew, operating costs grew with it. In 2014, the global airline industry spent over $699 billion to make a profit (Cros, 2015). High operating costs have reduced the profit margin for carriers and left them scrambling to find ways to expand their margins. To ensure effective and efficient operations, globally airlines will spend $174 billion…

Introduction to Assignment 1 This report contains information about British Airways as a company. During the three tasks given on this first assignment, all the information founded is used to analyse British Airways in order to find the main key-factors which influence the demand. These factors have different sources, like the service provided from British Airways, the company’s brand recognition (reputation and image), political forces/social crisis and the economic growth. All these…

Error Fares and How to Take Advantage of Them Error fares as the name implies are fares put up by the airline that are either below or above the normal fare for the flight or hotel bookings and reservations. It is amazing to know that one can take advantage of this, even on a low budget, you can travel to seamless locations and make reservations at unbelievable rates. The prices are too good true, for example you can get an error fare of $500 for a flight ticket of $5,000. In the article we…

Information goods Information goods to not highlight in the airline industry as a seller, however airlines do use information goods, as with other industries, in some format. Airlines that provide in-flight movies and music are making use of providing information goods to their customers especially if they charge a fee for this. Weather reports (Ward 2016) is another illustration of a very beneficial information good used by airlines when deciding on diversions within routes. The importance…

The legal issue in this circumstance is of the contract and its validity. The first factor to consider is to determine if a contract even exists. The drink company implied, through a commercial advertisement that if an individual earned seven million company points, they would be rewarded with a jet. It needs to be determined if this was an offer made in the advertisement. The individual saw this commercial and did, in fact, reach the 7 million company points. He then wrote to the company and…

Revenue management (RM) was first implemented in the 1970s and practised mainly within the airline industry, also known as airline yield management (Cross, Higbie, & Cross., 2009). Smith (1992) described revenue management as “selling the right seats to the right customers at the right price” (as cited in Schuessler, 2010). In the late 1980s, the hotel industry adopted this practice from the airline industry, with a similar objective to increase revenue. The implementation of RM by American…

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…

1. Introduction The company set out to compare the profitability and sustainability of Full Service Carriers (FSC) and Low Cost Carriers (LCC). The main aim of the study was to find out the demand for travel on each type of airlines. Furthermore, the company could decide if it wants to launch a full service carrier and if investing in LCC would reap significant profits or become a liability. Incheon International Airport in Seoul, South Korea was chosen as the base point for both carriers…

Argument 1 and 2 both address drones. Specifically argument 1 addresses why “Cargo drones can make a difference in Africa, elsewhere” and argument 2 clarifies about “Small drones causing big problems for firefighting planes”. While argument 1 and 2 include tremendous strengths argument one is the strongest argument. To begin, the author’s main claim is that “Cargo drones can help hard to reach areas of the world”. The main reason that supports their claim is that they can fly to areas that…