December 28 while it was traveling from Surbabaya in Indonesia to Singapore which has created loss of 162 passengers (West, 2015). Delaying flights Frequent delay has started happening and customers has started losing its focus from Air Asia to other carriers like Singapore subsidies Tiger Airways (Avathr, 2015). Maintenance Since, Air Asia do not have its own facility to maintain its aircraft has to take it other facility. It has being long to do maintenance work for its aircrafts every now and then
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Economic Analysis on Budget Airline—Taking Ryanair as an example . 1. Introduction Ryanair Ltd. is a pioneered Irish low-cost airline, located in Dublin, Ireland. In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers, according to its annual report in 2013. From its official website, data shows that Ryanair operates more than 1,600 daily flights from 72 bases, connecting
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performance was astonishing, he brought the airline back to life, and they even start making profits since year 2002 and launched their airline hubs in that particular year too. They even beat down their competitor which is used to monopoly Malaysia’s carrier service. Due to the extraordinary performance of the airline, they expanded their business in Thailand by placing a subsidiary at there. Now, we may easily found subsidiary airlines of AirAsia Group in India, Indonesia, Philippines, and even Japan
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mainstay of the major airline companies. The two companies which have developed the low-cost model most successfully in Europe have been easyJet and Ryanair. Both have enjoyed phenomenal growth, building market share at the expense of the major flagship carriers such as British Airways (BA) and Lufthansa, in effect revolutionizing air travel within Europe. Low-cost travel now enjoys a market share of over 10 per cent of intra-European air travel. Of the two companies, Ryanair has been the more radical in
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Table of Content RYANAIR THE COMPANY 3 Section A 4 Slow Growth 4 The impact of slow growth on the industry 4 Taxation 4 ECONOMIC FACTORS 5 Unemployment 5 GNP trends 5 Inflation 5 Exchange rates 5 Interest rates 6 Security Factors 6 The Threat of close substitutes and rivals 7 HIGH FIXED COSTS; 7 AIRPORTS 7 PORTER’S FIVE FORCES 9 Threat of new entrants 9 Suppliers: 9 Buyers: 9 Substitutes: 9 Competitive rivalry: 9 Section B 10 Firm Infrastructure 10
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business model existed for some time (first such in 1973 US), the appearance of these in the European market needed the liberalization brought forth by the EU, implementing the „Freedoms of the air” in three stages. In 1997 the first LCC (Low Cost Carrier), the Ryanair began its operation, and in a few years a few more followed, which gave the national and network airlines a new problem to the existing economic problem, shrinking market and others such as 9/11. By today the changes in the past two
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Low-cost carriers are also known as the LCCs or budget airlines. The first LCCs business was established at 1971 in the Southwest of US. LCCs had become a common business model in present time. It was stated by (HKEXPRESS n.d.) that LCCs is maintaining a safety flight journey with the lowest air ticket price to travel between destinations, in the arrival time and paid fee for the customer service as you desire. For the reason of LCCs is providing the cut-price airfares sending you to the destination
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2001. AirAsia aims to establish itself as a leading low cost carrier in market by valuing its customers through cost advantages created by operational effectiveness and efficiency. The key of profitability for airlines is unit cost competitiveness because airlines know that it is difficult to increase their revenues in the current situation. The cost gap is the source of sustainable competitive advantage for Air Asia (low cost carriers). There are seven factors that determine firms unit costs compared
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Company Profile •Aer Lingus is the national airline of Ireland. It is headquartered at Dublin Airport, Ireland. •The airline operates 43 aircraft and carries on average 10 million passengers per annum. •The airline's primary mission is to connect Ireland with the world and the world to Ireland by offering its customers the best product in the Irish airline market at a competitive price. The airline’s primary markets are Ireland, the United Kingdom, Europe and the United States. The Irish people
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AirAsia BERHAD MARKETING PLAN No. | CONTENTS | PAGE | 1.0 | Executive Summary | 1-2 | 2.0 | Introduction | 3 | | 2.1 Background and History of AirAsia | 3-4 | | 2.2 Vision Statement | 5 | | 2.3 Mission Statement | 5 | | 2.4 Objectives | 5 | 3.0 | Environmental Analysis | 6 | | 3.1 PESTEL Analysis | 6 | | 3.1.1 Political Factors | 7-8 | | 3.1.2 Economic Factors | 8-9 | | 3.1.3 Social Factors | 9-11 | | 3.1.4 Technological Factors
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