...integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled bag to address customer satisfaction RECOMMENDATIONS • Trainer refinery: mitigate risks for success. • Customer satisfaction: domestic differentiation strategy and international best in class strategy Overview Industry Company Strategy Conclusions Review 2 The Airline Industry: At a Glance Across the Industry • Slow, but positive, global GDP growth • More financially-stable U.S. airline industry as merger integrations mature and restructured carriers emerge • U.S. carriers maintain capacity restraint with growth less than GDP • Inflationary pressures across all categories, with industry capacity discipline allowing for recovery of higher cost inputs • Corporate travel demand remains solid with corporate travel spend to increase 5% for 2014 Overview Industry Company Strategy Conclusions Review 3 Industry profitability improving, but returns still below WACC Profits have been improving in the past three years… …but the industry is still not having economic profits Overview Industry Company Strategy Conclusions Review 4 Porter’s Five Forces: Airline Industry Power of Suppliers: HIGH • Powerful labor unions • Aircraft and engine producers are both concentrated oligopolies • Airports are local monopolies • Airport services (handling, catering, cleaning) are also concentrated...
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...can improve customer service for the customer, the organisation and the employee. Airport (Employer) In the Manchester airport they have unknown shoppers who helps the airport to deliver excellent working levels of customer service which helps the customer service to identify the weaknesses. In Manchester airport they do customer questionnaire which it can help the airport employees and it can improve the business a lot, the questionnaire is all about the comments of what the customers have to say about the airport which negative or positive, the questionnaire can help the business to change lots of things. Terminal operations meeting can help the airport improve because in the airport they have meetings everyday in the morning at 9am and during the meeting it can help the airport improve because while in the meetings everyone are giving their own ideas, opinions and all agree on what they can or should do and they also talk about the next 24hours what they should do. In the Terminal operations meetings everyone that works in the airport attend to this meeting just so that everyone knows what is happening and so they can have a lot opinions from others. Customers Outsider’s shoppers can help the business for example improving customer service, and also the customers act like a normal customer they don’t want the customer service to know, and also the airport will be getting lots of feedback that can improve the customer service at the Manchester airport. The feedback...
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... On the other hand, marketing strategy of any company focuses on selling products. In other wrds, marketing strategy compromise of producing high margine profit product, targting ceratin customers demograpghic, pricing services on two things: profiblity and company requirments, presenting products trough promonotional channels without dmaging the brand (Sam Ashe-Edmunds and Media 2013). All that has been applied successfully in Ryainair situation. Ryanair’s main target is to prsent itselfe as the cheapest low cost airlien operator in Eurpe. That has been achived through successful mrketing strategy of contnious enhancing its offers and enlarging its promotions of cheap services (Ryanair 2013). Ryanair ‘s objective is to increase the quantity of customers using its services while focusing on mintining low cost operations and improving itsefficincies (Ryanair 2013). Ryanair has around 26 bases in Eroupe, the favorite destenation for passengers from the uk and vice versa. In additon to that , Ryanair is using unified fleet of boieng 737-400s , which means the company does not have totrain maintance crews on maintianing new areoplanes. What is more, thse areoplanes can easily fly to the USA without any refulling problems. All these strong points has made marketing rayainrair services is esy task. The company can cover all lesiure destinations t no extra cost. At the same time, the company can offer cheap flights to the USA , s part of the new open skies- pact. The 262 planes...
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... INTRODUCTION Airports Company South Africa SOC Limited (ACSA) was formed in 1993 as a Public Company under the Company Act of 1973, as amended, and the Airports Company Act of 1993, as amended. Although ACSA is majority owned by the South African Government, through the Department of Transport, the Company is legally and financially autonomous and operates under Commercial Law. ACSA was formed to owned and operate the nine (9) principle South African Airports, including the three (3) main International Gateways of O.R.Tambo , Cape Town and King Shaka International Airports. As well as providing world-class, secure infrastructure for Airlines to transport people and goods. ACSA extends it responsibilities to include the promotion of tourism, the facilitation of economic growth and job creation, and the protection of the environment. The nine (9) principle airports are as follows: • OR Tambo International Airport (previously known as Johannesburg International Airport) • Cape Town International Airport • King Shaka International Airport (previously known as Durban International Airport) • Bram Fischer Airport (previously known as Bloemfontein Airport) • East London Airport • George Airport • Kimberley Airport • Upington Airport • Port Elizabeth Airport The Group Structure: ACSA’s strategy is to build an efficient and customer focused business, in line with its vision of being a world-leading airport business. The group structure reflects...
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...affordable fares, on-time performance and hassel-free travel. These may seem like big words, but I personally experienced this while flying the airline. The fare was the second-lowest on the sector I flew, and I picked the flight because of its superior on-time performance as compared to others on the same route. In fact, even in-flight, there was emphasis on these three tenets, especially on-time performance. As for hassle free travel, I found the planes to be extremely clean and soothing music was being played upon boarding and alighting from the plane. Focus on excellent customer service pays off It’s Indigo’s emphasis on ensuring a great customer experience during interactions with the airline that is doing wonders for the brand. Special attention is paid to ensuring consistency in service across the A320 fleet and the experience at the airport matches that on-board the plane. In congested Indian airports, Indigo has roving “check-in counters” where passengers with only cabin baggage can check-in with an Indigo official with a handheld device, rather than lining up at the check-in counter. Another simple, yet effective measure. Style - Being a low-cost carrier, all of IndiGo's flights have no Business class or First class sections. It offers only Economy class seating. To keep fares always affordable, IndiGo has designed a clean, comfortable and reliable airline without costly frills or complimentary meals that put upward pressure on fares. However, it does offer a buy-on...
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...the sector in the last five years? 1. Loyalty: The most important factor for being successful in service industry is loyalty. Quality of service, communication with the current and potential clients as well as promos and discounts can help airline companies to attract more travelers. As Ryanair is a low-cost airline, they do not invest in any particular loyalty program, like majority of full-cost airlines do. The attitude for the low-cost airlines could be described as ‘you get what you paid for’. Looking for other big companies, it is essential, that a properly working loyalty program needs big investments and proper, continuous management that would essentially increase costs of operation for Ryanair. Despite this fact, during the research it was investigated, as Ryanair is one of the leading European low-cost airlines, it already has a base of loyal customers, mostly because of simplicity (a lot of destinations offered, cheap prices, and relatively new aircrafts). 2. Access: Airports are usually out of the cities. Passengers are spending a lot of time in traffic jams on the way to and from the airport. In addition, passengers are spending a lot of time in the airport, as usually they must check-in in advance. Reducing advance time and developing transportation can reduce the overall time of the trip. Access factor for Ryanair a is topic for discussion, as majority of airports they operate in are very far from the cities (what makes fees cheaper and as a result tickets), for...
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...2012 Zurich-Noch Airport Case study Team Name: Sparta Submitted by: Aman Jhalani Anshul Choubey Mayank Tyagi Date of Submission: 1 March’12 INTRODUCTION The case here deals with improving the business performance of a Swiss based airport Zurich-Noch, which lies outside the Euro Zone. The airport began as a flying club in 1930s and then extending its service to provide schedules within central Europe. By 1989 the airport was handling 500,000 passengers per year. It is forecast to increase to 3.5 million for both incoming and outgoing passengers in the current financial year to 30 June 2011. The airport mainly serves holiday makers flying to destinations within Europe and only 5% of the passengers who use the airport are business travellers. The company is not listed in the stock exchange and is a joint venture of a group of four local governments known as LSGs which are divided into four geographical zones. The board of directors proposed a development plan in 2009 and aimed at gradual and phased development of airport company. Assumption Used in Analysis: The airport is assumed to be unaffected by the Euro Zone crisis which is currently prevailing in Europe and may well be extended to 2 or 3 years more down the line. The maximum airlines with which the airport deals are assumed to be affected by the Euro zone crisis. Positive inflation is assumed so the factors of cost are expected to increase subsequently. The strategic development...
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...Executive Summary……………………………………………………. 3 Indian Civil Aviation Sector- Chronology of events…….. 4 FDI Regulations………………………………………………………….. 6 Growing Low Cost Carrier Market share……………………. 6 Air Turbine Fuel Price trends……………………………………… 7 Rupee depreciation…………………………………………………… 7 LCC Strategies…………………………………………………………… 7 Financial Analysis……………………………………………………… 8 Current Transformation……………………………………………. 9 Industry Estimations…………………………………………………. 11 The Indian Advantage- The Four Big Prospects…………. 13 Evolution of the Indian Aviation Sector…………………….. 15 Strategic Grouping of Six Major Airlines……………………. 16 Six Major airports……………………………………………………… 16 Passenger traffic……………………………………………………….. 17 Freight traffic…………………………………………………………….. 18 Aircraft movement…………………………………………………….. 19 Private Sector players………………………………………………… 19 Airports- notable trends……………………………………………. 20 Porter’s Five Forces Analysis……………………………………… 21 Strategies adopted……………………………………………………. 22 Growth Drivers…………………………………………………………. 25 Strategic Policies- Industry Growth…………………………… 27 Top two players Analysis…………………………………………… 28 References………………………………………………………………… 28 3 Executive Summary The Indian Aviation industry has been facing multiple...
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...Arrive at selected airport Arrive at selected airport Receive email Receive email Customers look up booking information online Customers look up booking information online Consumer makes payment Consumer makes payment 2. The Service Package is defined as a bundle of goods and services with information that is provided in some environment. The bundle consists of 5 main areas which I am going to relate to Easyjet: Supporting Facility – The supporting Facility is the physical resource that has to be put in place before the customer can use the service. Easyjet has to ensure that they have an air plane and an airport to depart/land from in order to carry out their service. Another resource that would have to be in place would be the IT system in order for customers purchase their ticket. Customers can evaluate the IT system by going on the internet when booking their flights and decide whether or not it’s a fast easy reliable system. Facilitating goods – The Facilitating goods are the items consumed or purchased by the customer. Obviously for easy jet it would be the airplane journey, but also the food that can be purchased on the place is another facilitating good. Two ways the customer could evaluate the facilitating goods would be by checking the appearance/taste of the food or even by checking to see if any luggage has been lost or damaged. Information – Data that is available from the customer or provider to enable efficient and customised service. An example for...
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...Airlines needs to offer the lowest possible fare in order to win the competition in lower the costs as possible as need. In the way they want to lower the cost regarding the others airlines agency also do the same thing in lower the cost, AirAsia Airlines must more cheaper and affordable. However, this AirAsia Airlines are situated in many place in Malaysia. AirAsia Airlines opened many branches in this country to make sure they achieve the target and fulfil the user permission and their needs. For example of the location is situated at Lapangan Terbang Sultan Abdul Azizz Shah Level 1 Jalan Lapangan Terbang Subang, Subang. This location is suitable and is near with many populations of people and it will more easily for them to take the services. 1.1 ORGANIZATION BACKGROUND The AirAsia Airline was...
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... 1. What are the essential elements of Ryanair’s low-cost strategy? No-frills approach to the basic service offered the consumer, who benefits from fares that can be a fraction of those charged by the established carriers. High volumes – the need to have a high ‘load factor’. Priority on reducing costs in every possible way, including internet booking and tight schedules. Use of secondary airports - this is an aspect of the previous point, which can be discussed separately; public policy issues are involved, such as the possible subsidies offered by local authorities eager to attract commercial investment and visitors. 2. What factors will affect its long-term sustainability? Purchase of new aircraft, which, while more fuel efficient, involve higher depreciation costs. Fierce competition for the low-cost traveller: EasyJet is the most established competitor, but there are many others, whose services include, for example, allocation of seats, which appeals to many consumers. Legal changes in the use of secondary airports, whether from the European Commission or local authorities. Environmental pressures – low-cost air travel is a rapidly growing source of greenhouse gas emissions, as well as noise. While governments are unlikely to curtail their growth directly, a possibility is the increase in tax on fuel and strict regulation for the extension of airports or the building of new ones. 3. Look up Ryanair on the Web. Does it appear to you that Ryanair has...
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...BTEC Business Strategy Unit : 7 Task : 1 LO : 1 1.1 Strategic context and terminology Strategic planning is important for any organization. A clear understanding of the process of strategic planning is crucial for successful implementation of the same. This chapter focuses on mission, vision, objectives, goals and core competencies of TNT, issues involved in strategic planning and also different planning techniques. Mission statement: A mission statement is a role, or purpose, by which an organization intends to serve its stakeholders. It describes what the organization does (current capabilities), who it to serve (stakeholders), and what makes the organization unique (justification for existence). Mission statements always exist at the top level of an organization, but may also be set for different organizational levels or components. A mission statement is simply an organization's reason for existing. Vision Statement: Vision statement identifies where the organization intends to be in the future or where it should be to best meet the needs of stakeholders. Incorporates a shared understanding of the nature and purpose of the organization and uses this understanding to move the organization toward a greater purpose. Objectives: After developing mission statement, objectives are required to define. Objectives are much specific than mission statement For example- I want to finish my assignment by 10 o’clock this morning. This indicates to perform a number of tasks...
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...CONTENTS I. Introduction 3 Company background 3 History 3 Position 4 Vision 5 Mission 5 Goal 5 Management 5 II. Strategic Analysis 5 2.1 External analysis 5 2.1.1 PESTE 5 Political analysis 5 Economic analysis 7 Socio-cultural analysis 9 Technological analysis 10 Ecological analysis 12 2.1.2 5-force 2.2 Internal analysis 17 Value chain 17 2.3 SWOT 21 2.4 Options 24 2.5 Vietnam Airlines's doing 25 III. Recommendation 28 IV. Conclusion 30 V. Reference 30 Group members: * * 1. Đào Thị Mỹ Hạnh BABAIU13076 2. Park Do Hyun BABAUN13080 * 3. Nguyễn Thị Hoài BABAIU13090 * 4. Nguyễn Lê Phương Khanh BABAIU13107 * 5. Đỗ Thị Thanh Hoa BABAIU13089 I. Introduction. Nowadays, airlines industry is one of profitable businesses in the world. Both government and private enterprise are dominant in the industry. In Vietnam, aviation market is forecasted to be the world's 7th fastest-growing in 2013-2017 period. The Vietnam airlines industry stands a high chance of developing strongly, but there must be an investment in technology, infrastructure in order to reduce the cost as well. And Vietnam Airlines is a largest aviation brand name in Vietnam which has been wholly owned by government. In this report, we make some analyses to appreciate Vietnam Airlines exactly and realize suitable and unsuitable aspects. Company background Vietnamese...
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...In fact, there is no fixed and rigid range of actions appropriately applied to all organizations due to the diverse industrial characteristics, different company’s capabilities and resources, and changing economic environment. However, in achieving a successful strategy-executing process, every organization must complete 10 basic managerial tasks in term of staffing, resources and competencies, organizational structure, resource allocation, procedures and policies, practices improvement, information and operating system, incentives, corporate culture and leadership. How well the firm completes these tasks determines the success of the strategy, which is presented in form of strategic and financial objective accomplishment, employees and customer satisfaction as well as other stakeholders’ interest. Therefore, in order to evaluate and grade the strategy execution process of Southwest Airlines, we will analyze the extent to which the firm fulfills the tasks needed. The comprehensive analysis is covered in the following part of the paper. 1. Staff the organization with managers and employees capable of executing the strategy well. (1 point) We will break the issue into two facets including management team building and employees recruiting, hiring and training. In term of management, Southwest Airlines (SA) seems to have a strong competitive advantage over its rivals. It means that it possesses a truly strong and excellent management team with the leadership of prominent CEOs...
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...international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of government at the five airports which is Langkawi International Airport, Penang International Airport, Kuching International Airport, Terminal 2, Kota Kinabalu International Airport and the low-cost carrier terminal (LCCT) at KLIA. Air Asia is not happy with the Ministry of Transport and Malaysia Airports (MAHB) decision and trying to ignore as it can increase their cost and some more...
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