The Four Main Driving Factors In The Aircraft Industry

With the parts that do not last long that means regular maintenance and up keeping when something goes wrong. Although a diesel truck is more expensive, you can expect much more out of it. A 2015 Ford XLT Super Duty is around $51,000 brand new. Although it is much more expensive, the price comes with dependability. With a diesel engine, the parts are made stronger and makes the truck much more dependable.

With less air in the way there is less drag on an airplane. Traveling in thin air requires much less energy compared to thicker air levels, hence less fuel is needed to hit the same speed. • As the air is cooler at high altitudes, which expands more when heated than warm air. It is the expansion of the air that drives combustion engines. • Also at higher altitudes there is less turbulence because of less weather differentiation.

There was a widespread concern that jets would produce less power and consume more fuel than its piston counterpart. A short while later, it was determined that jets operate better and are more economical at higher altitudes. Once this was determined, the industry started to thrive. It also was noted that there was longer times in-between maintenance checks per aircraft. The less need for maintenance hours was simply due to the design of the engines.

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). However, the firm cannot increase passenger ticket price. Otherwise, it will be inconsistent with Nok Air’s position.

The basic element that characterise the companies that utilise the mass service process is the high labour intensity combined with low level of interaction and customisation (Nickson,2007,p.12). Consequently, Ryanair in order to efficiently handle thousands of passengers daily it is necessary to use highly standardised services (Barnes, 2008, p.189). Additionally, Ryanair chooses to operate mass services process aiming to achieve economies of scale in order to maximise the margins. Figure 1 – The Service Process

Stating from engines.fighter-planes.com the cost of testing ramjets are more expensive than the actual build and maintenance cost as special sealed of hangers must be built for testing to take place. Although high costs are need for testing ramjets have socially affected the world because the improvement of fighter jets using ramjets has allowed for a much-needed safety towards various aerial

SWOT Analysis One strength of Southwest Airlines is the strong fleet base, which enhances the company ability to deliver services effectively. The airline has one of the biggest fleets of Boeing aircraft globally, with multiple models of the aircraft, which helps with the effectiveness of their services. Other strengths are the revenue-increase using point-to-point service strategy, and the low-price strategy, which helps to maintain the volume of the passengers. The point-to-point services save time in the form of direct flights and provides better asset utilization for the company. Southwest Airlines’ business model allows the lower priced flights by saving money on fuel at large hubs, and in short turnaround time.

Car buyers should buy American cars instead of German because it’s more efficient and reliable, cheaper, and more profitable to the US. Buying an American car will be efficient and reliable. For most of the part, Chevrolet will always be the best American car out there, unlike Ford, with many problems and money loss. Majority of the people already go for American because they like to have the pride of being big and American. In which this article states, ”Much of the reason for that is because foreign cars, especially cheaper japanese cars, tend to be lighter than American cars, and Americans like to feel more in their bulkier, heavier, American vehicle.” (Jeff Rendek) Although Japanese cars are also efficient and reliable, people like the look

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

Thus, the power of the suppliers is high, since the suppliers have a grip on the market due to the huge demand of their manufactured products. Moreover, suppliers can affect the industry through their capacities to raise prices or reduce the quality of purchased goods and services. Bargaining Power of Buyers The buyers in the airline industry are demanding more and better quality services .The bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies.