Where an airport has significant market power incentive-based regulation is the only price regulation that will deliver efficiency gains. Airports usually have high credit ratings and can bear risk more easily than airlines. Regulation should be designed to facilitate this. Standards Poor passenger experience with check-in and security processes is another factor leading to a commoditization of the airline product and a low customer willingness to pay. Standards being introduced and proposed by the fast travel and checkpoint of the future programs and others could play an important role in improving passenger experience and willingness to
(“Southwest”) is an American passenger airline company that provides high-frequency, short-haul (generally under ninety-minutes) and scheduled air transportation in the US and near countries, with a fleet of 735 Boeing 737 aircrafts (the largest fleet of Boeing aircraft in the world). In the fiscal year 2016, Southwest achieved historical results, with $20,425 million on revenues, reinforcing its position as the low-cost leader in the US and globally. Apart from the low fare structure model, the company intends to focus on customer service, recording one of the best performances among the main players in the industry. Southwest Airlines’ purpose is “to connect people to what’s important in their lives through friendly, reliable, and low-cost air travel”, indicating already a customer-centric vision of its service business. The key objective of this paper is to apply the service excellence principles - using the framework proposed by Francis Frei – to Southwest Airlines, in order to discover the sources of success of this company founded in 1971.
Southwest Airlines’ business model allows the lower priced flights by saving money on fuel at large hubs, and in short turnaround time. The company is one of the only airlines in the world that are consistently profitable (Bhasin, H., 2018). A weakness of the airline is its dependency on a single aircraft
As a full-service airline, Qantas has identified and configured its niche consumers “willingness-to-pay” and focused all its strategic activities around it. The company’s business model as a full-service airline offering a large number of benefits in terms of flexibility to travel large number of destinations, connectivity to different hubs at major international airports, flying long distances, different travel class of “comfort’ including Business and First amongst others. The operational effectiveness of Jetstar versus its parent airline, Qantas is also a major hindrance. Besides the cannibalization fear, the fact that the airlines industry is very high on competitiveness, with other players on the international scene having the infrastructure (more number of planes) and financial prowess to effectively counter the launch of a smaller player like JetStar, should also be considered. Jetstar would need to invest heavily in infrastructure and advertising.
Every day, at any given time during the day, a person can look up into the sky and see countless trails left behind by airplanes. During the past, most people dreamed of being wealthy enough to afford to ride an airplane and experience the lavish services they offer. In the 1960s, when a Delta advertisement was published, the main focus of the ad was how extravagant their services offered aboard were. However, as time has progressed and air travel has become easier, it has also been viewed as a dangerous form of transportation. In the eyes of a terrorist, airports are viewed as an easy target to “test” the United States’ security.
There are seven vital characteristics that seem to get the substance of the belonging to the company which are: 1. Innovation and risk taking: Since the aviation industry is getting more and more competitive. Etihad airways aims to shin in the industry by making the best profits and providing the best service and product to the customer, therefore they have to start with their employees and make them as creative as possible. They recently built a new department that, which is called “Innovation Center”. It’s an examination focal point of greatness, where new thoughts are enlivened as “one of a kind items” and amazing encounters.
Nok Air has two major hubs located in Don Mueang international airport, which is a central domestic airport, and in Chiang Mai. A key competitive advantage that leads Nok Air to be the top budget domestic airline and to gain higher market share is using the product differentiation. Nok Air differentiates itself from other competitors in terms of routes and periods. The firm offers a variety of routes and periods to passengers to enjoy with Nok Air compared to other competitors in the market of low-cost airline. Expanding flying route is one of the firm’s strategies to serve more passengers.
It is easily understandable that it is a good practice to choose location of an organization where the product or service they are giving will have demand and will have enough population to maintain the level of demand. For example, if an airline company establishes its base in a place where population is low and economic activities are slow and almost non-existent. It will face two-fold problems in achieving its business objective. One is that there will not be enough passengers at any given time to fly their airlines in full capacity, and another one is that poor economic activities will render most of that meager population unable to bear the minimum
It becomes the first airlines which starts the websites and becomes the number one airline website for sales and revenue. Southwest Airlines is devoted as the most elevated quality client administration fulfillment in the feeling of benevolence, warmth, singular pride and organization goodwill or sprit. So this carrier’s organization is known as the most elevated client administration fulfillment, most astounding on time execution rating and the least grievances from client for a long