Established in 2004, Hong Kong Airline Express Airways was entering civil aviation industry and perceived as budget airline in 2013(Chau et. al.2015).The competition with the low-cost carrier airlines (LCCs), some of the full-service carrier airlines (FSCs) have responded by lowering prices ,improve internet sales facilities and reduce their price. In Hong Kong, the study area of this study, the demand of budget airline was increasing. Data from Public Opinion Programme at University of Hong Kong, showed that near 70% of Hong Kong residents have been taken low cost carrier in past few year. There are various factors affecting customers’ decision making (Liasidou, S.,2013).According to Usman Khan and Noreen Khan (2014), he mentioned that service quality (Lerrthaitrakul at el.2014), flight safety(Fried, 1989, Gardner,2004 and Zaid,1995),word-of-mouth recommendation(Hotmes and Lett,1977), market entry and impacts (G.Francis at el.
SpiceJet connects its network using next generation fleet of 32 Boeing 737-800 and 6 Boeing 737-900ER aircrafts and 15 Bombardier Q400 aircrafts which focused on operations in Tier-II and Tier-III cities. With Decline of SpiceJet, there will be inconvenience for passengers travelling from these cities to metros. Once, SpiceJet will be out, its market share will be grabbed by big airlines and IndiGo will become most dominant player in airline
Let’s take the example of the Airbus A380, put into operation in 2007 as the world's largest passenger airliner. Not only the expected passenger output was changed, but because of its size many airports also have/had to upgrade their facilities in order to properly accommodate the A380. Larger aircrafts, who are heavier and are, carrying more passengers, require larger runways, a more efficient baggage processing, etc. Also the introduction of e-ticketing, another example of a major technological change, has had major effects as it changed the way of organizing the airport’s check-in
Therefore, we highlight the problem as one of the way to eliminate Ho Chi Minh airport from being one of the worst airport in the world. The overcapacity problem also happens when the operation comes with cargo handling. In the year 2014, the Ho Chi Minh airport handled only 406,000 ton of cargo. We use Changi airport as an example. Changi Airport from Singapore, which was ranked as the top best airport in the world, could handle more than 1.8 million ton of cargo annually.
“This is a can Congress kicked down the road” writes Murphy of The New York Times, referring to the 18,000 pilots slated to retire by 2022 (Murphy, 2016). These pilot shortages will in turn push the larger carriers to recruit more aggressively from their regional partners. This pilot pipeline from regional jets (defined by the Federal Aviation Administration (FAA) as those operations using aircraft with less than 90 seats, and whose routes serve mainly as feeders to the mainline carriers) into the major carriers (aircraft over 90 seats) is a critical factor in satisfying the demand for pilots industry wide (FAA, 2016). Pilot salaries and compensation packages continue to be a significant factor in the supply and demand of pilots. Normally in the marketplace, the price of a commodity, in this case the salaries pilots can expect to earn, would adjust upwards in response to a reduction in the quantity of pilots available when the demand curve remains relatively stable.
4. Growing GDP: The growing GDP and Pakistan’s entry in the emerging economies by IMF is a positive indicator and giving a green light in Pakistan’s worldwide reputation therefore opening doors for the more international route expansion and permissions. 5. Competitors Advantage: With PIA’s downfall, poor service and repute also with Serene Airlines aircrafts parking accidents and engines being frequently down in the past few months, giving Airblue the advantage of getting more customers. THREATS 1.
Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.
Thousands of Americans flew in an airplane for the first, and some for the only, time. People learned that the airplane was not just limited to destruction, by bombing, from the air, but that it was a machine with great potential economic impact.”)- http://uss-bennington.org/history-turningpoints.html Entrepreneurs would rent a landing strip and then hire a pilot, get permits and then charge passengers $1 per minute of flying time. Before world war 1, planes were rare, and you were lucky if you had seen one. In 1920 the air force auctioned off 10,000 surplus airplanes and 30,000 aircraft engines, many of which had seen service in world war 1. All of a sudden there were planes everywhere with aircraft manufacturers releasing new, bigger and better models every
The logic behind the strategy was that the smaller aircrafts were suitable for the shorter runways at the regional airports, which were much smaller in size, while jet aircrafts o the trunk routes helped it to achieved higher capacity and carry passenger over a longer range than the ATRs. Lease with airbus. Cheap airlines usually entered into an operating lease with airbus, wherein the title remain with the aircraft owner, while the operator paid up rental payments, which were tax deductible and reduced not only the capital expenditure on the operator’s balance-sheet but also the operator’s exposure to uncertainty of the aircraft’s residual value at the time of its disposal. The lease payments comprised of a fixed base payment and a variable maintenance reserve determined based on the aircraft
Airline industry is the one of the most competitive and growing industry in the world which is directly impact to the economic growth, world trades and tourism of any country. With the assistance of the technology, the airline industry is growing significantly. “Emirates” is the one of the pioneer in the airline industry. It is the third largest airline globally by capacity. In 1985, the UAE government has invested $10 million to launch its own airline called “Emirates” with mission of “ exist to deliver the best in flight service” and flew its first routes out of Dubai with just two aircraft a leased Boeing 737 and an Airbus 300B4.