Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts. At some point in time, Delta Airlines will end up with a bigger number of aircrafts, which would be older than the ones of Singapore Airlines. If we consider that the average age of Delta’s airplanes is 8.8 years, and of Singapore airlines is 5.1 (both: case - pgs. 2 and 3) then the difference in airplane ages will be 3.7 years. Using the average gross value (calculated in Q3) and assuming 3% of inflation before 1993, we can calculate the increased value of the fleet: Average gross value $
Most of the airline industry is composed of two categories of buyers, which are (i) single flyer, (ii) travel agencies and online portals. For the travel agencies and online portals, buyer power increases because they purchase a large portion of the airline industry’s total output. Both of the two categories of buyers have low switching costs because most of them choose the flight based on ticket price. For the period of 2001-2004, the US airlines began cutting prices to try to maintain their passengers’ loads in the face of declining demand. However, when one airline serving a particular route cut its prices, its competitors, desperate to cover their fixed costs, quickly followed.
Airbus has always been labelled as inefficient in operations when compared to the rivals because of its history of delayed deliveries. Airbus has higher production costs compared to its rival. Opportunities Threats Growing demand of aircrafts over the next 20 years. With the growing Passenger traffic due to the rising middle class in the emerging nations, Airbus has a great opportunity to gain the market share. Technology Advancement can help Airbus improve on its weaknesses and faster delivery.
4. Growing GDP: The growing GDP and Pakistan’s entry in the emerging economies by IMF is a positive indicator and giving a green light in Pakistan’s worldwide reputation therefore opening doors for the more international route expansion and permissions. 5. Competitors Advantage: With PIA’s downfall, poor service and repute also with Serene Airlines aircrafts parking accidents and engines being frequently down in the past few months, giving Airblue the advantage of getting more customers. THREATS 1.
The decline of SpiceJet and its fallout on Indian airlines industry Market Share: SpiceJet fiasco worked as wonders for its competitors. Other airlines are making most out of the fall of cash-strapped carrier SpiceJet, once a dominant player in aviation industry and have been evident from increase in market share of Air Asia India, Indigo and Jet Airways. These airlines have increased number of flights in routes in which SpiceJet has withdrawn its operations to cash Crunch Company is facing. SpiceJet has reduced its operations from more than 350 daily flights to 220 daily flights. Air Asia India, Bangalore based airline and new entrant in market, which has been attacking market share of SpiceJet since inception will be looking for huge chunk
Southwest Airlines Case Study Thousands of people travel by air; Southwest Airlines provides low-fare air transportation service among 58 cities in the United States. Although the industry suffered a major blow from the terrorist attack of September 11th, the company is still holding strong; while other airline companies are in debt. The information was majority gathered and analyzed from the internet; sources such as "News Week," and "Wall Street Journal." According to the acquired knowledge of Southwest, the company maintains steady sales. The major success to their continued success is due to their low-cost model and competitors are aware that they cannot match Southwest Airlines low prices therefore, by dropping the price even lower; Southwest Airlines can force a company to go bankrupt.
INTRODUCTION The purpose of this report is to identified the Risks of Jet Airways faced. Jet Airways is the India 's market leader in airline industries, however has faced increasing competition over the last decade resulting attrition in their market share. Jet Airways occupies second place. Along with its subsidiary, Jet Konnect, it had a share of 22.6 per cent of the Indian skies. The airline was the largest and occupies the number one position with a market share of 28.2 per cent.
TERM PAPER 1 COMPARTIVE ANALYSIS OF INDIAN LOW COST CARRIERS 1 INTRODUCTION: 3 Topics 3 List of LCCs in India 4 Marco environmental factors that affect the airline industry: 6 Strategies followed by IndiGo 7 Strategies by spice jet 7 Market share of airlines: 8 INTRODUCTION: Low cost airlines Firstly, low cost airlines are the airlines which offer cheap flights, cheap fares. Some times by low cost carrier’s flights and these low fares they may not even reach their BEP. Indian aviation market is conquered by the low cost carriers. And India is the second largest populated country in the world and with the most of India is of middle class people and increase of the middle class population
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.
Established in 2004, Hong Kong Airline Express Airways was entering civil aviation industry and perceived as budget airline in 2013(Chau et. al.2015).The competition with the low-cost carrier airlines (LCCs), some of the full-service carrier airlines (FSCs) have responded by lowering prices ,improve internet sales facilities and reduce their price. In Hong Kong, the study area of this study, the demand of budget airline was increasing. Data from Public Opinion Programme at University of Hong Kong, showed that near 70% of Hong Kong residents have been taken low cost carrier in past few year. There are various factors affecting customers’ decision making (Liasidou, S.,2013).According to Usman Khan and Noreen Khan (2014), he mentioned that service quality (Lerrthaitrakul at el.2014), flight safety(Fried, 1989, Gardner,2004 and Zaid,1995),word-of-mouth recommendation(Hotmes and Lett,1977), market entry and impacts (G.Francis at el.