Also, some airport hubs cannot consolidate traffic bound for many itineraries. Having this limitation and knowing the fact that some passengers prefer non-stop flights, consideration of both hub-stop and non-stop routing strategies can be more cost-efficient than a pure hub-and-spoke network (Jeng 1987). In other words, non-stop flights are always the most desirable in terms of convenience but on the other hand less desirable in terms of price for price sensitive customers. Moreover, the stops at the hub airports increase the expenses for the airline companies due to the facility charges and landing fees. Therefore, the airlines can generate more revenue by considering these key parameters and applying best network routing
Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.
The leadership of such companies would require diverting scarce resources into the culture change program. In 2000, the airline industry was facing a downward trend, but WestJet was looking to expand by either adding more planes or merging with Jetblue, another low-cost airline. Expanding in an economy that was facing a recession would have been self surbotaging. Factually, expanding the business in such conditions
Most airline companies try and avoid responsibilities associated with projecting costs for maintenance and equipment break down. They prefer service providers doing it and this is precisely what Rolls-Royce offered through ‘Power by the hour’. The program qualifies as an ‘order winner ‘ for multiple reasons, firstly, the risk is transferred from the customer to Rolls Royce, secondly, Rolls-Royce will strive for more preemptive maintenance and offer better designs and lastly, the customer receives an economic benefit by saving un-necessary costs. Hence, ‘Power by the hour’ gives Rolls-Royce one more competitive advantage. (Netessine, 2014) Another order winner is the ‘in service remote engine monitoring’, these are a set of integrated services through which Rolls Royce provides engine management and predictive maintenance for over 3,500 jet engines globally.
Singapore Airlines’ strategy is focus on high level of customer service and business travelers as important market target. To support these high-level quality standards it is important to offer new aircrafts so the depreciation short term is fully aligned with this vision. Question 5 Does the difference in the average age of Delta’s and Singapore’s aircraft fleets have any impact on the amount of depreciation expense? If so, how much? Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts.
When there are good in economic growth, consumer’s discretionary income rises and there is often an increased demand for air travel that people like to travel and spend their leisure time with vacation and others. But, when economic downturn, demand for air travel will decrease. Therefore, these economic factors have affected Ryanair’s profits. Ryanair needs to make a new strategy or adjust their plan in order to meet the economic condition. This is because to avoid wastage during low travel periods besides taking the opportunity when there is peak-time travel.
Airlines operate and depend highly on timely arrivals and departures. Technology has allowed the security checks required for each passenger to be efficiently executed in a manner much quicker than human capabilities, especially in major airports with thousands to millions of passengers daily. Also, passengers and airport personnel don’t have to sacrifice much time to endure a process which most passengers tend to dislike as the speed of the technological assistance eliminates the feeling of being screened thoroughly while still getting the job done. Another effect of technological additions to Security checks is the result of improved safety in aviation around the world. It is now rare that one finds that an aircraft has been hijacked, thanks to the strict and thorough procedures one has to undergo in Security
Abstract: Customer Services concept is directly related to Travel industry because it is based on customer expenses and without the customer there is no Income. Good customer service is required at every part of travel industry as well as it is essential to the success every company either it is flight, hotel, travel agency, restaurant, etc. In the travel industry, customers today expect more than they did in the past so we must always try to continually improve level of the service to enable us to keep up with customer expectations and leads to excellent customer service in the travel industry.This theoretical study is based on secondary data where it includes the information published on the theme of travel industry in various internet sites. This
Geographic Segmentation: Southwest Airline has entered new markets with a recently acquired terminals in New York-la Guardia and Washington DC- Reagan while have an existing markets in DFW Houston. While in existing markets they do focus on customer loyalty and in order to make that happen they do promotions and advertising to maintain the brand loyalty. Thus this will make south west airline different than others through the heart campaign. Demographic Segmentation: Southwest needs to provide a friendlier and flexible service to families while they should focus on single travellers being or arriving on time. AS mentioned earlier, elastic and inelastic demand for business travellers and normal travellers.
Therefore by combining the IoT and RFID, perfect application is being designed for the Aviation Industry. In reference to other papers in this direction people tried their best to make the baggage handling system more effective using many different technologies. One such method made use of Boarding Pass and the long Baggage Tag (Bag Tag) with a barcode at the departure control system (DCS) . Presently it is done for domestic airlines considerations. They used it for writing data along with RFID and barcode which then led to high costing.