...Hong Kong Budget Airline Industry Analysis By Jaeyeong Ahn 1155032046 Xie Jianting 1155001899 Shi Weiran 1155002072 Tan Jiayi 1009609441 Gao Jingya 1155001997 TABLE OF CONTENTS 1. Introduction 2. Budget Airline Industry 2.1 Definition & Pricing Model 2.2 Common Practices to Lower Overall Costs 2.3 Development of Budget Airline in America, Europe and Asia 3. Hong Kong Market Analysis 3.1 Competitive Landscape 3.2 Major Budget Airlines in Hong Kong 3.3 Market Analysis 3.4 Target Customer Analysis 4. SWOT Analysis of Budget Airlines 4.1 Strengths 4.2 Weaknesses 4. 3 Opportunities 4.4 Threats 5. Analysis of Success Factors in Budget Airline Industry 5.1 AirAsia’s Success in Asia 5.2 Oasis’s Failure in Hong Kong 6. Conclusion 1. Introduction In September 2013, Hong Kong Express Airways announced its plan to transform itself into a budget airline. Meanwhile, Jetstar, an Australian budget airline, has applied for an operating license in Hong Kong under the belief that there are abundant opportunities for growth in the budget airline industry. However, Hong Kong-based airlines Cathay Pacific and Dragonair strongly insist that the market is saturated, and that new entrants into the market will harm the airline industry as a whole. The purpose of this report is to analyze the prospect of budget airline industry in Hong Kong and to determine if...
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...AirAsia Malaysia from 2005 to 2008 and builds on a prior case, ‘AirAsia: The Sky’s the Limit’. Within only four years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. The article documents AirAsia’s marketing strategy and discusses its approach towards ‘market development’ and ‘product development’. The Blue Ocean Strategy concept is used as a tool to examine AirAsia’s strategic moves. Keywords: Low-cost airlines, budget airlines, marketing strategy, Asian entrepreneurship In the case study ‘AirAsia: The Sky’s the Limit’, the authors Ahmad and Neal (2006) discussed AirAsia’s comeback from a debt-laden scheduled airline (US$ 10.5 million in December 2001. The airline was bought by Tune Air for a token sum of one ringgit1 or 0.26 US cents) to a profitable low-cost or budget airline that managed to attract US$ 200 million in additional capital through its initial public offering in October 2004. AirAsia Berhad or Malaysia AirAsia (hereafter referred to as AirAsia) was credited for its efforts in enabling Malaysian people to travel by air to destinations in Southeast Asia at relatively low prices. AirAsia’s business model was a replication of Southwest Airlines’ low-cost model but was spruced with ‘local touches’ in terms of its marketing management practices. In December 2004, AirAsia formed a joint venture airline in ...
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...AirAsia Malaysia from 2005 to 2008 and builds on a prior case, ‘AirAsia: The Sky’s the Limit’. Within only four years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. The article documents AirAsia’s marketing strategy and discusses its approach towards ‘market development’ and ‘product development’. The Blue Ocean Strategy concept is used as a tool to examine AirAsia’s strategic moves. Keywords: Low-cost airlines, budget airlines, marketing strategy, Asian entrepreneurship In the case study ‘AirAsia: The Sky’s the Limit’, the authors Ahmad and Neal (2006) discussed AirAsia’s comeback from a debt-laden scheduled airline (US$ 10.5 million in December 2001. The airline was bought by Tune Air for a token sum of one ringgit1 or 0.26 US cents) to a profitable low-cost or budget airline that managed to attract US$ 200 million in additional capital through its initial public offering in October 2004. AirAsia Berhad or Malaysia AirAsia (hereafter referred to as AirAsia) was credited for its efforts in enabling Malaysian people to travel by air to destinations in Southeast Asia at relatively low prices. AirAsia’s business model was a replication of Southwest Airlines’ low-cost model but was spruced with ‘local touches’ in terms of its marketing management practices. In December 2004, AirAsia formed a joint venture airline in ...
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...Introduction In Dec 2010, China airlines Ltd, announced that it had recorded sales revenues of 138.14 Million dollar as for flights carrying people. The company’s Sales Revenue increased by 41 % from Dec 2009 in which the company had achieved 98 Million Dollars. This increase was followed after the company’s announcement in January 2010 that its recorded Sales reached an amount of 358 Million dollars in Dec 2009 including civil and cargo services. These numbers show a huge deficit in the total revenue of flights carrying civilians where the main source of profitability was based and focused on Cargo flights services. Still CAL, China airlines Ltd, didn’t complete its Mission well in terms of increasing profitability and developing its services in order to boost its revenues. Still Civil flights consider covering 38% of the company’s recorded sales. In our paper we stated the company’s Vision, Mission, and Objectives in order to state a plan for developing the company’s civil flights using an edited Business Model. CAL’s problem was in its high costs among competitors who used the LCC (low cost control) in their business in order to create a competitive advantage. In our paper we edited the company’s business model in which we entered some of LCC programs that may attract more customers and compete strongly with competitors. For that CAL developed its systems to be number one leading systems among other airlines especially those in emerging markets such as Mainland china. We stated in our...
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...EXECUTIVE SUMMARY Tony Fernandes, as the Chief Executive Officer of AirAsia, decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional”. AirAsia has achieved its title as “The World Lowest Cost Airline,” and was also one of the world’s most profitable airlines. This report provides an analysis and evaluation of internal and external of the company. Methods of analysis includes of internal and external assessment and financial analysis. SWOT analysis provided in this report will shows the strengths, weaknesses, opportunities and threats of AirAsia. At last of this report, we have provided the recommendations for AirAsia to increase their performance. 1.0 INTRODUCTION 2.1 Company Background Asia’s leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. Air Asia was named the World’s Best Low Cost Airlines in the annual World Airline Survey by Skytrax for five year consecutive years in 2009, 2010, 2011, 2012 and 2013 and has been ranked Top 5 among the most recognized and admired airlines in the Asia Pacific Top 1000 Brands 2008. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...matter? Industry settlement systems Aviation solutions Note: Unless specified otherwise, all dollar ($) figures refer to US dollars (US$). This review uses only 100% recycled paper (Cyclus Print) and vegetable inks. # IATA Membership as of 1 May 2012 ABSA Cargo Airline Adria Airways Aegean Airlines Aer Lingus Aero República Aeroflot Aerolineas Argentinas Aeromexico Aerosvit Airlines Afriqiyah Airways Aigle Azur Air Algérie Air Astana Air Austral Air Baltic Air Berlin Air Canada Air China Air Corsica Air Europa Air France Air India Air Koryo Air Macau Air Madagascar Air Malawi Air Malta Air Mauritius Air Moldova Air Namibia Air New Zealand Air Nigeria Air Niugini Air Nostrum Air One Air Pacific Air Seychelles Air Tahiti Air Tahiti Nui Air Transat Air Vanuatu Air Zimbabwe Aircalin Airlink Alaska Airlines Alitalia All Nippon Airways AlMasria Universal Airlines ALS American Airlines Arik Air Arkia Israeli Airlines Armavia Asiana Airlines Atlas Air Atlasjet Airlines Austrian Avianca Azerbaijan Airlines B&H Airlines Bahrain Air Bangkok Airways Belavia—Belarusian Airlines Belle Air Biman Binter Canarias Blue Panorama Blue1 bmi British Airways Brussels Airlines Bulgaria air C.A.L. Cargo Airlines...
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...Strengths | 19-27 | | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | | 6.2.7 Process | 58 | | 6.2.8 Programs | 59 | 7.0 | Marketing Implementation | 60 | | 7.1 Marketing Organization | 61-63 | | 7.2 Activities, Responsibilities, Budget and Timetable for Completion | 63-67 | | 7.3 Monitoring Procedures | 67-69 | 8.0 | Financial Summary | 70-72 | | 8.1 Financial Performance | 73-82 | | 8.2 Financial & Operational Statistics...
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...Term paper on “The Airline Industry in Bangladesh : A management Colosseum” Faculty of Business Studies Bangladesh University of Professionals (BUP) The Airline Industry in Bangladesh : A management Colosseum Submitted to Major General (Retired ) Professor Alauddin M A Wadud,BP Course Instructor, Strategic Management Faculty of Business Studies Bangladesh University of Professionals (BUP) Submitted by 1. Priodarshine Auvi (EV1202026) 2. Mohammad Abdul Momin (EV1202027) 3. Kazi Kamrul Alam (EV1202029) 4. Mahbubur Rahman (Ev 1202028) 5. Maruf Hossain (Ev 1202014) LETTER OF TRANSMITAL Aug 27, 2013 Major General (Retired ) Professor Alauddin M A Wadud,BP Course Instructor Strategic Management Faculty of Business studies Bangladesh University of Professionals (BUP) Subject: Submission the term paper of “The Airline Industry in Bangladesh: A management Colosseum” Dear Sir, With due respect and humble to inform you that it is my pleasure to submit this report on“The Airline Industry in Bangladesh: A management Colosseum”. As your valuable suggestions and guidance, we have tried my best to prepare the report properly. There may be some shortcomings. We would be grateful if you consider those as excusable points and we like to thank you for your kind cooperation. Despite the limitations, we sincerely believe that you...
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...Airline Brand Loyalty: A case study involving the three airlines, - SAS, Norwegian and Widerøe A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Tourist Studies at UiT The Arctic University of Norway by Basant Raj Shrestha Course code: RMG40 Candidate no. 3 Student no. 420456 October 2014 1 ACKNOWLEDGEMENTS There are several people, without whom this Master thesis would never have been started, let alone finished and who deserve to be thanked and acknowledged for their support and inspiration. First of all, I would like to extend my sincere gratitude to my supervisor, Professor Per Kåre Jakobsen for guiding me through this process. I would also like to thank my methodology supervisor, Professor Kjell Hines, whose open- minded approach to the Master process enabled me to develop in my own words. His comments and suggestions for improvements to my dissertation are highly valued and gratefully acknowledged. Secondly, I am very grateful for the help provided in execution of the field study by securities of the Alta airport. Many thanks to Mr. Arnulf Nilsen and to some members of Avionor for their help and co-operation. Many thanks to travelers who took the time to thoughtfully provide the information used in this study. Thirdly, I would like to thank my teachers at UiT The Arctic University of Norway, in particular Professor Bente Haug, Professor Bente Heimtun, and Professor Britt Kramvig not only for...
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...HISTORY 6 LOYALTY PROGRAM 6 FINANCIAL PERFORMANCE 9 FINANCIAL POSITION 9 FINANCING ACTIVITIES 11 EXTERNAL ENVIRONMENT 11 GENERAL ENVIRONMENT 12 EXTERNAL ENVIRONMENT ANALYSIS 41 INDUSTRY ENVIRONMENT ANALYSIS 44 1. Porter's 5 forces model 44 COMPETITOR ANALYSIS 65 INTERNAL ENVIRONMENT 68 COMPETITIVE ADVANTAGE 90 VALUE CHAIN ANALYSIS 92 IMPORTANT ENVIRONMENTS THAT ETIHAD NEEDS TO BE AWARE OF: 108 ARE THE VISIONS AND MISSIONS CLEAR AND MEASURABLE? 110 REFERENCES 111 INTRODUCTION Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change (Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor, 2005). Our group decided to work upon Etihad Airways, the flag carrier airline for United Arab Emirates. The name ‘Etihad’ is derived from an Arabic word which means ‘union’. In addition to its main activity of passenger transportation, Etihad controls Etihad cargo and holidays. Aside from that, they have stakes in many other airlines as well. Some examples include Air Berlin, Air Seychelles, Jat airways (Serbian national airline) and Virgin Australia to name a few. In...
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...THE GALLUP ORGANIZATION Evaluation Study in Selected Overseas Markets Ministry of Tourism, Govt. of India Report on Evaluation Study in Selected Overseas Markets For Market Research Division Ministry of Tourism Government of India March 2007 Evaluation Study in Selected Overseas Markets Ministry of Tourism, Govt. of India Table of Contents Chapter No. 1. 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 2. 2.1 2.2 3. 3.1 3.2 3.2.1 3.2.2 3.2.3 3.3 3.4 3.4.1 3.4.2 4. 4.1 4.2 4.2.1 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 5. 5.1 5.2 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.4 5.4.1 5.4.2 1 2 2 4 6 7 11 STUDY OBJECTIVES Primary Objective Secondary Objectives 1.1 Contents BACKGROUND Tourism Outlook Tourism Outlook – Global Tourism Outlook – Asia Tourism Outlook – Forecast Indian Economy Tourism Outlook – India 14 15 16 RESEARCH DESIGN Segments identified Segment definition Travelers Segment Trade Partners Directors of Tourism Office Methodology Sample Travelers Segment – Sample Split Trade Partners Segment – Sample Split 17 18 20 20 22 22 23 24 25 26 FINDINGS – TOURISM OFFICE EFFECTIVENESS Executive Summary Detailed Findings – Tourism Office Effectiveness – Travelers Awareness of India Tourism Offices Detailed Findings – Tourism Office Effectiveness – Trade Partners Key marketing Challenges Trade Partners Not dealing with India Disposition to deal with India in Future Efforts required...
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...CASE TIGER AIRWAYS Type of project Date Pages Thesis 19/05/2011 94+ 7 Appendices Supervisor of study Executive organization Virpi Oksanen Tiger Airways Group Abstract The main objective of the thesis was to assess the level of customer satisfaction of the airline company Tiger Airways, which is a low-cost airline with a considerable number of dissatisfied customers. In the study the theories of customer satisfaction were reviewed for providing solutions for the airline to reduce the number of discontented customers. To analyze the current situation of the airline company’s customer satisfaction the quantitative research method was used. The research material was collected by online questionnaires and an open interview on the Internet. The survey was directed both to the customers and the employees of Tiger Airways. In addition, secondary data was used in the study. The theoretical framework consists of a literature review on customer satisfaction, the research method and a review on the airline management. The results of the research revealed that Tiger Airways respondents complained mostly about uncomfortable delays and inadequate customer service. However, according to the representatives of the airline company a low-cost airline can be expected to provide services at a certain level only. In conclusion, based on the customer satisfaction theories, the importance of customers for profitable business...
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