1.0 Executive Summary This report aims to analyze and evaluate the international joint ventures conducted by one of the world best low cost airlines, Air Asia, through their operation years. In particular, Air Asia Indonesia, Thailand, Expedia and Air Asia Japan are being chosen to probe into This research put priority on the factors that turn Air Asia Indonesia, Expedia and Air Asia Thailand into a success throughout their operational year. The Successful International Joint Ventures of Air
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Contemporary Developments in Business and Management 1.0 Executive Summary This report is about the growth of a Malaysian brand low cost carrier - AirAsia Berhad on how they started this business and bring a huge change in the low cost carrier history globally. This report will discuss on how AirAsia business structure is, what is their culture and the expectation to maintain as well as get into the right track of tough time in airline services. The concept of low cost air travel was then
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JetBlue Soars into the Friendly Skies October 18, 2010 Discuss the trends in the U.S airline industry and how these trends might impact a company’s strategy. Despite the unpredictable and rising costs of aircraft fuel, oil and maintenance, threats of terrorism, and fear of decreases in business and leisure travelers, the airline industry has remained resilient in recent years. According to Air Transport Association of America (ATA), (2006), the airline industry lost about 13 billion dollars
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edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than
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•Need for low cost base •Flight Authorizations Threat of Substitutes •No brand loyalty of customers •No ‘close customer relationship’ •No switching costs for the customer •Other modes of transport Competitive Rivalry •The low-cost carrier market is highly competitive •Most cost advantages can be copied immediately •Low levels of existing rivalry as the two major low-cost airlines have avoided direct head to head competition by choosing different routes to serve •However if any
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their? Competetive advantage for AirAsia What is their competetive advantage? Load factor, cost per available seat mile, aircraft utilization, et cetera. 2-3 slides Sources of competetive advantage First mover advantage Being the first low cost carrier allows AA to capture a larger market share in South-East Asia which has 500 million people -> huge market. Fresh start, no “legacy” problems of older airlines, this allows them to build an optimal LCC-system from the ground up, they do not inherit
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easyJet’s future 9. Appendices 1. Introduction and History A successful example of a European no frills airline is easyJet. Stelios Haji-Ioannou (Greek) founded the company in 1995. It is based on the low-cost, no-frills model of the US carrier Southwest. The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, more people will fly. Traditionally airline concepts are based on the assumption
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Indian aviation industry is passing through a bad phase. Though, Indian carriers flew over 55 millions domestic passengers between January and November against 47 million in the like period of last year, they are finding it extremely difficult to continue with their expansion plans and existing operations, amid rising fuel prices and other policy constraints. Except the low-cost airline IndiGo, which continued to earn profit, all the other airline players faced tough times and many of them had
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and has continued to be the only carrier in the U.S to remain consistently profitable. The carrier has been able to sustain its position, growth, profit and competitive advantage through the implementation and dedication to a low-cost leader strategy which focuses on low operating costs, low fares, and excellent customer service which has become a major part of its culture and marketing. Despite the low costs strategy, and continually reported profit, the carrier has lost money between 1980 through
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PESTLE Analysis Political/Legal Up to April 1997 the European Airline Market was regulated strictly and each county controlled their own airline companies. After 1997 and deregulation the European market opened up for carriers and subsequently for example an Irish low cost carrier like Ryan Air was allowed to operate between two other European countries. Since then European routes have increased by140% ( Ingdahl W. “Flying has never been safer” Spiked 19 03 2014) This was followed by the EU/USA Open
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