British Airlines Literature Review
The literature review for the responses of some airlines (Qantas, Air New Zealand, Air Canada, Alitalia, Iberia, Aeroflot, ANA, LAN, TAM and British Airways) is summarized below in terms of setting up an LCC, alliance/merger/partnership/franchise, capacity, and fare and product policy: Figure 6 : Some of the major airlines in the world
Table 17 : Responses of Qantas to LCCs (Forsth, 2003)
Country Australia
Airline Qantas
Deregulation 1990
LCC entry Compass, 1990(lasted 1 year)
Compass Mark II, 1992 (lasted 6 months)
Kiwi Airlines, 1995 (international operations) (collapsed by Freedom Air)
Impluse, 2000 (taken over by Qantas in the first half of the year)
Virgin Blue, 2000 (subsidiary of Virgin Group)
Responses
Set up LCC Quantas set up its
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Alliance/
Merger/
Partnership/
Franchise • Merger with Iberia in 2011
• oneworld alliance member
Capacity Decrease frequency on some of the routes by
• transferring operations to regional carriers
• replacing 737s with regional jets
Catering operation outsourced
Fare • removal of minimum stay requirements for cheap fares on short haul flights while requiring a return journey enabling the tickets starting at opposite directions may not be cheap.
• made some one-way seats available at lower fares through consolidators.
• made lower fares tickets flexible but in case of change difference in price has to be paid
Product
The below Table 27 summarizes the overall result for the analyzed airlines;
Table 27 : Response Strategies of some airlines
Airline Overall
Result Response Strategy Price revision Capacity change Product enhancement Subsidiary LCC Alliance membership
Aefoflot -
Air Canada x
Air New Zealand x
Alitalia x - - -
ANA - -
British Airways - x
Iberia -
LAN - - -
Qantas -
TAM -
Crown Corporations In Canada
1102 Words | 5 PagesThe Canadian Dairy Commission, established in 1966; unlike other Crown corporations was established to regulate the Canadian dairy industry by setting reference prices and monitoring the supply (‘Meeting’, 2005, p.58). During the 1970s the federal government struggled to find a solution to the operational, financial and labour challenged of the postal service. Thus in 1981 saw the conversion of the Post Office Department into a Crown corporation, now knows as the Canada Post (‘Meeting’, 2005, p.36). More recently, in 2002, the Canadian Air Transport Security Authority became a Crown corporation to manage key aviation security services in Canada. These key aviation security services were previously provided by airlines, airports and other, but after the widely publicized terrorist attacks in the United States, were considered as inadequate by the public (‘Meeting’, 2005, p.9).
Swot Analysis Of Air Canada
1235 Words | 5 PagesAssignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
Economic Factors Affecting Qantas
315 Words | 2 PagesThis article concerns various elements of the economic environment and their impact upon Qantas, such as significantly lower fuel prices. Representing its largest cost, lower oil prices as a result of oversupply and lack of demand have reduced Qantas’ fuel costs by $597 million since the previous year (O’Sullivan 2015a). Another contributing economic factor has been the Abbott government’s repeal of the carbon tax as part of its fiscal policy, which is said to have boosted Qantas’ pre tax earnings by $116 million (O’Sullivan 2015b). This article further relates to the economic environment as it discusses the impact of the falling value of the Australian dollar on Qantas. Its 25% decline since mid-2014 has encouraged Australian residents to
History Of Don Green And Michael Budm Founder Of Roots Canada
1938 Words | 8 PagesWhen did he/she/they lead their company? Don Green and Michael Budman became entrepreneurs in 1972, when they first started developing the idea of an Algonquin Park related footwear collection (“Roots goes global with new owners”). They created the Canadian brand Roots in 1973, and they led their company from the start until late 2015, when they sold Roots to a private equity firm named Searchlight Capital Partners LP (“The newly global Roots must master e-commerce”). Where did he/she /they do business (Ontario?
United Airlines Market Segmentation
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Transnational Strategy Of Lufthansa
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Swot Analysis Of Virgin Australia Airlines
2186 Words | 9 PagesThe inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
Hong Kong Dragon Airlines Case Study
2150 Words | 9 Pages(REF). In January 2006, the management of Hong Kong Dragon Airlines
Price Discrimination In Hotel Industry
777 Words | 4 PagesWhen determining the type of market in which certain goods are sold, there are couple main points to think about: are there many competitors, are the goods homogeneous or heterogeneous and is there free entry and exit in the long run? In our case, there are a lot of sellers in the market, more than 200. Goods, even though can seem to be similar, are heterogeneous. Hotels can differ by location, room quality, size, skill of employees, entertainment, outdoor activities and so on. Also, there is free entry and exit to and out of the market.
Business Strategy Case Study: Delta Airlines
742 Words | 3 PagesDelta created its separate subsidiary in response to competitive threat of low-cost airlines. In addition, its subsidiary used pilots of its parent airline with independent decision-making authority. Does song have an effective strategy? Evaluate strategies by using three tests of effectiveness? Low-cost airline: Faster growth of low-cost aviation industry with homogenous service makes this industry fragmented across the United States.
Strategic Management: Strategies, Deliberate Or Emergent
3600 Words | 15 PagesWill start with application of Michael Porter’s generic strategies to ‘Affordable sky’ (a new, no Frills airline) which is about to enter the U.S. market. Second we will try to work as a consultant for Affordable Sky’ airline, and based on the above excerpts about the airline industry, will try to choose the suitable entry strategy for this new company to adopt and we will try to explain why, finally we will discuss which diversification strategies or alternatives we may suggest and why? Also, explaining why we would advise Affordable Sky against having a joint venture with another established airline company. The question headed with this statement: ‘Recently, the growth and profitability of commercial air carriers in the USA has been impacted by many external factors. This industry saw four major players (United, US Airways, Delta, and Northwest) file for bankruptcy protection in the last decade or so.
Swot Analysis Of Caribbean Airlines
967 Words | 4 PagesObjectives 3.1 Focus on airport resources and technology to improve on time flights, arrival, baggage handling. Caribbean Airlines objectives are to have a flowing routine, by allowing customers to check in their baggage at any time and remove the fixed time according to the customer’s flight. The customers can enjoy the freedom of having lunch with families without the hassle of dragging multiple bags behind them. Another objective would be to improvement of flights scheduled, meeting each and every customers boarding time and even arriving to their destinations before time 3.2 Continue to develop and deploy travel innovations Caribbean Airlines will focus on a more innovative aircraft interior, giving passengers more leg room and better
Swot Analysis Of Philippine Airlines
980 Words | 4 Pages> Founded in 1941 and based in Pasay City, The Philippine Airlines is the country 's ultimate flag carrier and oldest airlines. The monopolization of the airline occurred in 1995 when Lucio Tan, an affluent Chinese-Filipino businessman purchased the airline and became its chairman and CEO. . Global competition in the industry > Threat to new entrants: In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop.
Singapore Airlines Case Study
3552 Words | 15 Pages1.0 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).
SWOT Analysis Of Flydubai: Low Fist Airlines
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