are many competitors with approximately the same size, especially for the legacy carriers. Product differentiation Concerning the significant product differences and brand identities between the competitors, we have two types of competitors: the legacy competitors and the low cost carriers. In this industry, we have an intense price competition, particularly since the coming in the market of the low cost carriers. Would customers incur significant costs in switching to a competitor? The answer
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capacities, Prices: up to 65% lower than legacy airlines Marketing: 2 types of customers: business and travel passengers, different customer approach. Distribution: Started with New York and Florida, JetBlue became the ninth-largest passenger carrier in the US in 2005. Service: No cancelation policy in the first place, setting customer bill of rights, which includes: Cancellations, Departure delays, overbooking, onboard ground delays rules. EXTERNAL ENVIRONMENT (Threats and Opportunities)
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* Qantas Airways Limited may have won the capacity war between itself and Virgin Australia, but the cost has been considerable. The company now needs to consider drastic measures that were previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme. Much of Qantas Airways Limited’s future, however, is in the hands of the Australian Parliament, and whether or not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership. KEY
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Low cost airlines Definition of low cost airlines Ryanair is a low cost carrier, well-known in Europe which started in 1991 as a ‘no-frills’ service airline between Ireland and the UK. By 1995, Ryanair spread to more European countries. Nine years later it carried 20 million passengers and 10 years after that, in 2010, the number of passengers doubled to 45 million. This low-fare short-haul airline was no\t the first airline was not the first airline with these characteristics. It was Southwest Airlines
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business and the air traffic has also seen rapid growth. This led to intense competition and only a few managed to survive. Today, Indian aviation industry is one of the fastest growing aviation industries in the world. It is dominated by low cost carriers. The civil aviation industry is likely to register a CAGR of 16% for period 2010-2013. Introduction to Indigo Along with the venture of several private players came the trend for low cost private airlines, which promised a huge market in the Indian
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winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. The airline company was established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. In 1996, the company became Malaysia’s second national carrier, and officially commenced operations
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scheduling is critical. Negative Medium Overall Negative Low to Medium 2. Porter’s 5 Forces Model Overall: Low to medium Potential New Entrants — Low Potential threat from new entrants are: a. Foreign Carriers enter into Australian Market b. Regional Carrier Start Up. E.g. Virgin Blue There are very few barriers to entry to the airline industry, but those that exist are particularly high: There are high financial
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with industry veterans who were able to translate their vision of the company into a reality customers experienced. High quality service, low cost carrier coupled with an efficient organization that operated a low cost structure and invested staff led to one of the most profitable airlines in the US. JetBlue was not just another low fare carrier. One of the main reasons for their success is innovation. Their aircrafts were the first to have live satellite television in every seat, they were
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Factors influencing customer preferences while choosing between budget airlines Applied Research Project Report On Factors Influencing Consumer Preferences while choosing between Budget Airlines Submitted in partial fulfilment of the requirement of Global Masters in Business Administration(GMBA) Information Technology Specialization Submitted by Zarine Susan George GNOV10IT066 Under the guidance of: Mr. Thanneermalai Lakshmanan 1 Factors influencing customer preferences while choosing
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first class passengers able to take between 30-40kg depending on the airline. Hand luggage is fairly standard between the airlines: one piece per passenger and up to 8kg in weight though the dimensions of baggage that is allowed can vary between carriers. Base fare/rate – the basic price of ticket before taxes and other surcharges are added (these are usually a substantial amount particularly on longer flights). Blackout periods – specific days or periods of time when special rates are not available
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