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.
What I like about it is an aggreagator of flights which there are a lot of but this one takes into account details like layovers and the airports you will be going to it takes the human parts of flying rather than just the takeoff time and the time it is going to land and adds what it calls an ecstacy score. So it will tell you this is actually a great flight because it is not a redeye and you are not going to end up in Dubai actually Dubai is a terrible example because Dubai would actually be a lot of fun lets say
The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry: The competition between Air Canada, a traditional carrier, and West Jet, low cost carrier is rigorous in Canadian airline industry.
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.
The elasticity of demand is greatly affected by the customer's purpose for travel. Airline customers typically fly for business or pleasure. With the wave of technology, a large percentage of business travel has been eliminated to conserve
Pilots were encouraged to contribute to the executive team and be part of innovation that led to differentiation from other airlines. Flight attendants were required to serve customers in a caring, positive, and cheerful manner. However, the attendants were not given a manual on how to please customers: it was up to them to decide how each customer was to be
Jetstar would need to invest heavily in infrastructure and advertising. The other critical issue which could be a cause of failure in the international routes is “straddling”. Given the fact that the airline industry entry barriers are quite low for existing players, bigger airlines could easily copy the “Jetstar business model” and Jetstar would have to accordingly adapt its strategy through non profitable “positioning trade-offs” which could hurt its profitability in the long
After the deregulations in the airline industry, the revenue management techniques have become inevitable for airline seat inventory control. Revenue management is the process of selling the limited perishable capacity to the right customers at the right prices so as to optimize the total revenue. Classic examples of RM can be found in the airline and hotel industry where there are finite number of seats and hotel rooms, respectively (Mou and Wang 2014). The main problem in airline revenue management is to determine booking control strategies. Airlines seldom charge the same fare for each seat on a flight, but instead price seats based on customer’s willingness-to-pay.
Moreover, it does not provide training to its staff. In contrary, employees are obliged to pay for their training programs so as to succeed in the workplace (Ryanair.com). It is wide known that Ryanair provides low salaries, which can only be balanced through productivity-based pay motives. For instance, it gives commissions for on-aircraft sales of products for flight attendants
The federal government’s absolute control over the TSA makes airline travel inefficient because adjusting the administration’s budget for more screeners, technology, and research is difficult and slow to develop. The security lines in airports are more often than not long and slow and there is no obvious solution that would make the TSA more efficient. Author Julia Zorthian of Time magazine claimed that the TSA blames passengers: “They carry on too many bags, which causes delays, and sometimes ignore small steps like having their IDs and boarding passes ready what would expedite the security process”. There is an unfortunate distribution of blame between the federal government and the consumers. The federal administration of airport security isn’t beneficial to either party; the federal government is responsible for drafting a budget of $7.4 Million dollars which adds to the national debt and the consumers are being subjected to inconvenient and intrusive screening processes (Zorthian 1).