1. Introduction Cathay Pacific Airways Ltd. was established as early as 1950’s in Hong Kong, and fully dedicated to serve tourists from all around the world to make the Hong Kong-grown brand eventually become an international aviation airline known as efficiency and safety, including a big amount of investment of 148 aircraft. In addition to the investment of purchasing aircraft, Cathay Pacific initiated well-rounded match department such as ground-handling subsidiaries and catering departments, which have had headquartered nearby Hong Kong International airport. Till today, Cathay Pacific still keeps greatly dedicate on its home market Hong Kong, and signed new contracts for introducing additional 72 brand-new aircraft prior to 2024. In total,
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
The utilization of wide-body planes by Cathay Pacific has provided the company with an opportunity for maximisation of the comfort that is provided to the travellers. The company has adopted an innovative measure for transforming the seats to become more comfortable through ailing more space as well as different position to which the seats can be adjusted. This has been an innovative programme for upgrading the seats in many of the planes owned by the company. The plan made the seats to become fully flat, and be able to provide a bed extensions for travellers to sleep. The dimensions of the seats have been significantly improved to make the set wider and more comfortable to the travellers.
• In the long-haul market, Qantas faces competition from local operators in most geographical areas such as Middle East, China and India. Whereas in the medium-haul market, low-cost carriers such as AirAsia, Tiger and others have established strong market positions and continue to grow. • Fluctuating fuel price due to many factors that are beyond the control of companies negatively influence the profitability of Qantas and its competitiveness globally making airfares stalling fleet orders (Euromonitor, 2014). Together, key factors that need to be consider include PESTLE analysis that influences the airline industry is shown below. Political and legal factors Airlines operate in a political environment that is strictly regulated where government intervention over the performance of the company is necessary from time to time.
Thus, it is safe to say that there is low-to-moderate bargaining power of buyers in this sector Bargaining Power of Suppliers The three main costs for the airlines are fuel, labour and Airport charges. Fuel efficiency depends upon various factors, like the type of carrier and the distance travelled. Labour, on the other hand might have high bargaining power but Ryanair
H&M gained competitive advantage of low risk and constant profit margin in Singapore and Malaysia, because it is politically stable. The reason why H&M pursues wholly owned subsidiary in countries such as in America and Canada is, because H&M can have a control (full) over their stores. Franchising can only be used when the
There are also cost that are irrelevant to be charged to the passenger such as delay or cancellation fees that make the substitution are readily in the market because other airlines company are not charging their passenger with this kind of costs. All in all, Ryanair Holdings is not a sustainable competitive advantage in the long run since the company is not fully satisfied the above four criteria. Thus, the company should look forward in reducing any unnecessary cost that could escalate the cost of the trip in order to ensure the loyalty of the passenger and being able to sustain in the long run with a stable competitive
Ryanair is leading low cost airline in Europe. It provides low cost travel on frequent point-to-point flights on short-haul routes. Ryanair’s vision and mission is to ‘’ To firmly establish itself as Europe’s low fare, schedule passenger airline through continued improvements and expanded offerings of its low fare service and to become Europe’s most profitable, low cost airline by rolling-out proven low fare, no-frills service in all markets in which we operate to the benefit of passengers, people and stake-holders”. (Our Strategy, Ryanair). The aim of this report is to analyse the attractiveness of the industry for Ryanair using Porter’s Five Forces model and to research Ryanair’s strategy.
A SWOT analysis of Ryanair’s strategy with regard to its leadership and management by Michael O’Leary will help us understand if Ryanair can capture its projected market share and make a mark in the European airline industry. SWOT Analysis: STRENGTHS at Ryanair 1. Low costs Ryanair stands out in the fact that it has the lowest unit cost when compared to all the other European airlines. Also, on a worldwide basis Ryanair has a distinctive factor of deploying their services by incurring low costs. 2.