2.4. Characteristics of market development scenarios in the context of the creation of the new air carrier
Depending on the market development scenarios in the context of creation of new air carrier proposed hypotheses of the study can be proved or disproved. Thus, below are factors that determine the development of scenario, confirming alternative hypothesis, according to which the creation of new air carrier providing safe, effective, low cost air services to a wide range of consumers will be profitable:
Obtaining the required governmental approvals.
Securing financing.
Experienced management.
Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted
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Traffic expansion faster than speed of expansion in the sector. During recent years, where the Turkish civil aviation sector entered into a serious growth trend, Pegasus has proven to be satisfying a significant demand in aviation sector with the number of its guests increasing much more than average growth in the sector. In 2012, Pegasus Airlines, the second largest airline in Turkey, has signed for up to 100 A320neo Family aircraft (57 A320neo and 18 A321neo models), of which 75 are firm orders. Pegasus becomes a new Airbus customer and the first Turkish airline to order the A320neo. This is the largest single commercial aircraft order ever placed by an airline in Turkey, and was announced on December 18, 2012. In 2012, Pegasus Airlines carried 13.6 passengers in total. Between 2008 and 2012, the number of passengers has grown by a cagr of 32.5 …show more content…
Dry leasing - 3 (followed by 2 additional aircraft in subsequent years) narrow body jet aircraft, either Boeing B737-800 or Airbus A320 family types with high-density seat configuration.
2. Provision of a sufficient cash reserve to assure timely payment of the leasing payments and all operating costs related to the aircraft through at least the first three months of scheduled operations.
3. Marketing, advertising, and public relations costs, including costs of setting up a website capable of offering flight and company information and making online sales for airline tickets, and related Internet marketing, as well as conventional print and broadcast advertising, and public relations activities.
4. Costs associated with recruiting, training, and certifying required cadre of flight, ground crew members, including management and administrative support staff members.
5. Sufficient reserve to cover overall operating costs, aside from aircraft related operating costs, over at least the first three months of operations.
6. Administrative and legal costs incurred in the establishment of the enterprise and commencement of flight
These costs can be both personnel and non-personnel and both direct and
In SWOT quadrants, having more strengths would be a huge stepping stone to a company. Strength will create good reputation, increases customers’ loyalty, profitability and also in gaining new customers. As for Ryanair Holdings, it has built a very strong brand name for over more than 25 years since it was founded in 1985. Strong brand name would be a very tough strength to beat by other competitors. Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
This is what Nok Air can offer better than its competitors. However, the disadvantage is the current Nok Air’s operating cannot generate enough profit. Since Nok Air positions itself as “premium low-cost airline”, the firm is now facing the high cost. The costs include fuel engine price, the premium onboard service, foods and beverages, the cost of offering high weight of baggage, and so on. Also, as Nok Air has to hedge fuel engine from Thai Airways International Public Company Limited, it mainly drives Nok Air to have the higher cost, and it results in decreasing the profit (“Broken Wing Nok Air,” 2008).
Based on our calculations in Appendix 1. at the first stage support costs were allocated to two existing departments, i.e. Machining and Assembly, based on direct labor hours. Therefore total amount of costs assigned to Machining department is $472.000,00 and to Assembly department is $248.000,00. At the second stage total costs from both departments were distributed to products (Regular and Deluxe). Referring to our calculations in Appendix 1.
Executive Summary JetBlue Airways is a company that applies innovative technologies to offer high quality travel services at a lower cost (Shrivastava, 2012). A SWOT analysis of JetBlue airlines shows that despite the numerous opportunities and strengths it has, it is exposed to threats and weaknesses that pose challenges in its operations. The threats include issues like strong competition from other airlines and the volatility of the fuel prices. JetBlue Airlines is relatively new to the market when compared to its major competitors such as the Southwest and Delta Airlines. Most of its strategies have worked to its benefit.
Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the
With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional
It would aim at establishing a strong customer lifetime value. It would also search for new markets in other
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
Introduction FlyDubai is a low cost airline that was established at the heart of the global recession by optimistic investors. The airline flight coverage is to regions that are within five hours margin of flying from Dubai. The airline was established by the Emirates government. The airline is not a competitor to the major airlines but poses competition to other low cost airlines. This marketing audit aims at looking at the potential markets for the airline and establishing ways of being established in them.
Promotion is something to excel the marketing activities which
Aircraft Performance Through the chaos and mayhem of World War 2, the aviation industry made significant advancements in its technology. After the war ended, this technology stretched and expanded to the farthest reaches of the world. Frank Whittle of England and Hans von Ohain of Germany both created the world of aviation that we live in today. Both men did it without the knowledge of each other throughout the 1930s and 1940s.
In the airline industry, we can distinguish six categories of inputs. Firstly, labour input refers to the number of employees a corporation has. Secondly, there is fuel input. Thirdly, the capital input includes the number of aircrafts a company owns through purchase
Until today, this incident is still affecting Malaysia Airlines in different aspects. Especially, on their corporate image, reputation and finance. Not only Malaysia Airlines, but the image and reputation of our country are also being affected because Malaysia Airlines have strong bonding with the government and they as a representative role stood out to speak for Malaysia Airlines. Malaysia government had given a very bad impression to others on their crisis management and crisis communications. Experts criticized their crisis management by saying “crisis in managing crisis” and “make a crisis worst” due to their failure in crisis communications.