Ryanair is one the few airlines which have complete fleet provided by Boeing (CNBC, 2013). Ryanair intends to exploit the technical prowess of Boeing to create fuel efficient aircrafts with more seats within the aircraft space thus transferring the cost benefits to the customers. Ryanair demands that their fleet of aircrafts are should be similar in design to reduce the maintenance costs and Boeing caters to their demands with timely delivery of the
Rolls Royce’s new engine designs offered exactly that and proved to be an ‘order qualifier’. The design was an advantage for all airline companies as they could consider entering exclusive deals with Rolls- Royce for their various airline models and could possibly benefit from generous discounts as a result of bulk orders. And this in turn would lead to repeated business for Rolls-Royce giving them a competitive advantage of being the preferred engine manufacturer. (Rolls-Royce: Britain 's lonely high-flier, Jan 8th 2009) Rolls-Royce’s innovative idea of ‘Power by the hour’ is a true example of an order winner. Most airline companies try and avoid responsibilities associated with projecting costs for maintenance and equipment break down.
For the customer metric, they measure the annual number of new customers, annual proportion of on-time flights to total flights, and customer satisfaction survey. The annual number of new customers is being measured because an increase in the number of customers can give the company an idea about their future and potential growth in the market. This also gives an idea about the customer satisfaction. The annual proportion of on-time flights to total flights is the basic indicator for airlines. Even if the company has a low-fare image, if their flights are late, customers still doesn’t prefer it.
The only way to book flights is via app or the company webpage. The differentiation strategy focuses on customer satisfaction, high level of employee dedication, and focus on making the flying experience fun (Rodrigo, 2016). Strategy Alternatives Alternatively, to the integrated low-cost/differentiation strategy Southwest Airlines is already using, there are four other growth strategies the company could use: market development, market penetration, product development, and diversification. To retain the company’s relative position in the market and helping it grow, the strategic growth alternative of market penetration and consolidation should be used (Rodrigo, 2016). Goals / Long Term
He introduced this time as an important factor for passengers’ satisfaction. Passengers expect a shortest cruise flight time. If an appropriate response given to the expectations, then passengers’ satisfaction will increase. Second: various factors are involved in the incident during a flight. By studying these factors, Skorupski (2015) estimated the probability of an incident during the cruise flight time.
Its survival has been as a result of continued improvement in the manner in which the management team addresses some of its challenges. Its state of prosperity is task-dependent. This means that the corporation 's success is influenced by factors such as logical programming, marketing, demand forecasting as well as production. The firm uses competitive intelligence parameter to ascertain the suitability of the environment for demand forecasting (Robinson 2004). Since the airline is a tactical entity, the key areas it concentrates on is the maintenance of the equilibrium.
American Airlines has a few strengths that puts the company above their competitors. Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. Hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance.
Retrieved from https://search.proquest.com/docview/218561489?accountid=29018 Pilarski, A. (2014). IATA Airline Cost Conference. AVITAS, Inc. Retrieved from https://www.iata.org/whatwedo/workgroups/Documents/ACC-2014-GVA/fuel-price-on-ac-economic-life-Avitas.pdf Westermann, D. (2012). The impact of low cost carrier on the future of pricing and revenue management.
3.0 OBJECTIVES 3.1 Vision & Mission Air Asia vision To be the main affordable airline in Asia and serving the 3 billion people who currently deprived with substandard network and high ticket prices. Air Asia mission • To be the best organisation where employees can feel close with each other like
CHAPTER 4 STRATEGIC PLAN “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably With the start a new year almost upon us, it is a good time to review an airport performance against its marketing strategy. This is best done with a cross-organizational team as a working review session. Every marketing strategy needs to be consistent with the overall business goals of the airport for maximum effectiveness. Strategies must also adjust accordingly to the economic realities of today, including airline industry performance and overall demand for travel. Developing a marketing strategy is a time-intensive process that leads