Porter’s 5 forces Competition from rival sellers The competition in the aviation industry is extremely high, due to many reasons. First of all, the fixed costs are extremely high in the industry, which leads to difficulty in leaving the industry because of long-term loan agreements. Also, due to the complexity of the products involved or the planes it is difficult to differentiate. Some of the rivals for example Easy jet or Ryanair may
The developments in civil aviation are brought to a new level. The newly released Boeing 377 Stratocruiser is conducting its first commercial flights. Last night the aircraft operated by Pan Am Airways took off from San Francisco, California on the way to Honolulu, Hawaii. The plane was designed to ensure your comfort and security. There have been 250,000 miles of test flights which pushed the aircraft to its limits in different categories.
ME Airline has been profitable well during the last 20 years, and it owns 235 fleets form Airbus and Boeing with employees over 65,000 until June/2016 (Safar 2016). The essay will conduct a case study of three aspects on ME Airline, which are organizational structure, organizational culture and HR function department to reveal how strategic management influence organizational development. ME Airline case
As in 2006 it has handled almost 30 million passengers. Plus Dubai has built their second airport called Al-Maktoum International which is known also as Dubai World Central International airport which will be the largest airport in the world. At first the airport was opened on 27th June 2010 for cargo operations followed by passenger flights in October 2013. The airport is currently under expansion as once completed, this airport will be the world’s largest global gateway with capacity for more than 160 million passengers per year. It will also serve as a multi-modal logistics hub for 12 million tons of freight.
According to Annual Report (2009), PIA currently operates 46 aircraft in its fleet having a range of advanced aircraft, Boeing 777 airplane and Airbus A-310.Pakistan International Airline is the 16th largest flying carrier in Asia, PIA covers 73destination worldwide and 24 domestic. The vision and mission of PIA is Customer Focus and Continual Improvement, to achieve this aim the higher management of PIA has undertaken a number of pioneering initiatives throughout its history.PIA has been divided into thirteen departments controlled by 19,263 employees unfortunately PIA is suffering losses, due to heavy salaries of employees because there are 440 employees per aircraft, whereas the international ratio is 150 to 250employees. Mainly PIA is owned by Government of Pakistan having 87% share and other shareholder are 13% so therefore a main drawback of political influence is present at high level.
In Hong Kong , CX have over 20,000 employees and it’s two major shareholders Swire Pacific Limited and Air China. CX listed on The Hong Kong Stock Exchange, such as CX itself. Cathay Pacific is also a founding member of the one world global airline alliance, combined network services more than 700 destinations worldwide.
SIA’s network reaches out to over 63 destinations in 34 countries around the world and by geographic segmentation, the bulk of Singapore Airlines’ revenue lies in East Asia which contributes to 55.81% of total revenue. Revenue generated from South West Pacific and Europe also account for 16% of the total revenue each. 1.1 Subsidiaries The Singapore Airlines Group adheres to a strategy of related diversification comprising of the parent airline company and 36 direct subsidiaries and associated companies. Its operations classified into 4 major divisions, namely Airline Operations, Engineering Services, Cargo Operations and Others. Figure 1 Today, Singapore Airlines and its subsidiaries have the most modern fleet in the world where Singapore Airlines has 108 passenger fleets and its Silk Air has 11 Airbus
It is Pakistan 's largest airline with more than 30 airplanes. PIA is going through a procedure of privatization to shift management from government to the private sector. Pia faces competition with international as well as national airlines, but right now it is passing through severe crises because of poor management, lack of planning, corruption, political interference and other external and internal factors. It is unable to cope up with its expenses and facing huge amount of loses. It needs good leadership, highly qualified staff and advancement in technology to overcome the hurdle and survival.
Jet Airways is continuously losing out on its market share and it also needs improvement in its in-flight services. It can also focus on the cargo market which is largely untapped at present. The major threat it faces is its competitors. High ATF costs and increasing inflation are another cause of worry for the airlines apart from international competition and government regulation
When an LCC such as Air Asia with such great emphasis on online sales is hit with service disruption, this could drive away the customers and diminish the profitability as the airline is unable to function at its fullest. In order to circumvent this problem, Air Asia has to invest heavily on advanced technologies, which could in turn cost them a great