Low-cost carrier

air-traveling was the appearance of the low-cost airlines, which provided lower prices and more frequent flights than their full-service counterparts. Besides the increase in demand, the oil prices have also shown a sharp rise, which affected the airline industry negatively. From 2003 to 2006 the price of an average barrel of crude oil was increased from 31 dollars to 60 dollars (Cento, 2009). The increased jet fuel prices compelled many airline companies to enhance their cost efficiency and to…

lowest labour cost than other airlines. Malaysian Airline has successfully gain a profit of RM 852 million was in 2007 and being ranked as a 5 star Airlines by The BTP in return. Weaknesses For the trailing twelve month period ended Dec 2011, the group was operating…

AirAsia’s PESTEL ANALYSIS Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok, Beijing, Hong Kong and Singapore there are no cheaper, secondary airports. The budget airline industry…

Dubai is successful in the aircraft industry because of its clear goals and brilliant implementation. It is proved that the tourism industry has a great stimulation for aviation. In 2013, there were around 10 million non-UAE visitors came to Dubai, they totally spent about $13 billion (Oxford Economics, 2014). The success of Dubai due to investment of government and individual on superior quality’s aviation and equipment to support the flow of tourist. Furthermore, Dubai has outstanding…

Southwest Airlines case. Southwest was founded by Rollin King and Herb Kelleher in Dallas in 1966. The business core is to provide low-fare and short-haul flight service to their customers through low cost operation. By consistently focusing on this core strategy, Southwest has grown to become one of the largest airlines in the United States, competing with other carriers including the Big Three – Delta, United and American Airlines. Based on my analysis of the case, I have discovered that…

Increasing labour costs, shortage of skilled pilots, increasing fare prices, high tax structure, low percentages of non-aeronautical revenues and escalating debt became an industry wide problem and most of India’s private airlines were sent into red zone. Due to economic recession, unmatched fuel price climb, turbulent financial markets the Global aviation industry was going through challenging times. After liberalization in mid 90s, The Indian airline industry showed a significant growth…

A critical review of Troy Sarina and Russell D. Lansbury’s article, “Flying high and low? Strategic choice and employment relations in Qantas and Jetstar.” Asia Pacific Journal of Human Resources (2013) 51, pp.437–453. Examining Sarina and Lansbury’s (2013) article on the two airline Qantas and Jetstar, it is seen that the conducted study concerns the strategic choices that the airlines adopted in relation to the changing factors that affected the aviation industry. This research aims to…

also “secondary-hub-secondary” strategy on connecting European secondary airports with cities in Asia and Australia with only one transfer. Thus, permitting it to enjoy a competitive advantage in travel time on a number of city pairs because legacy carriers offered itineraries with two transfers; “secondary-hub-hub-secondary” (Grimme, 2011, p.333). Additionally, up until then, for many states-owned airlines, it was more important achieving indirect state benefits, like tourism stimulation and…

Recently, competition is the prime environmental factor that affected their marketing strategy. Southwest Airlines has the lowest cost per available seat mile (CASM) among the major airlines; therefore, Southwest Airlines is able to control prices to maintain its profitability level. However, the CASM of Southwest Airlines is increasing due to elevated labor costs and fuel…

1985 by the Ryan family, headed by Tony Ryan to give planned traveler carrier benefits in the middle of Ireland and the UK as an option to state imposing business model transporter Aer Lingus. Notwithstanding a development in traveler volumes before the end of 1990, it recorded a loss of £20m Irish pounds. This brought about a battle to survive and the 1990s saw the carrier effectively restyle itself to turn into Europe's first low-charges, no nonsense bearer based on the model of south west…