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.
QUESTION 1. Analysis Political, Economic, Legal, Socio-cultural, Environmental and Technological 1) POLITICAL Political factors have a great effect on the operating environment of the aviation industry. For Virgin Atlantic, it is compulsory for them to work within an operating restriction that determine the services offered, where the airlines can fly, taxes for landing, fuel taxation, security legislations. In recent years, the terms of terrorism attacks become a serious issue and have a negative effect on this market. 2) ECONOMIC During the last decade, the global economic environment experienced a sharp downturn in the amount of economic activity, and this issue has a strong affect the air travel demand.
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.
This was an excellent opportunity for Sunset Airlines and assured the future of our airline. Another business decision that we made was we decided to payout dividends to our shareholders. Based off one of the newsletters we received it explained that our shareholders expected a fair return on their investment. Since we made this decision we have continued to pay out dividends each quarter to our shareholders. This has helped us bring up our stock prices.
> Founded in 1941 and based in Pasay City, The Philippine Airlines is the country 's ultimate flag carrier and oldest airlines. The monopolization of the airline occurred in 1995 when Lucio Tan, an affluent Chinese-Filipino businessman purchased the airline and became its chairman and CEO. . Global competition in the industry > Threat to new entrants: In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop.
Nok Air has two major hubs located in Don Mueang international airport, which is a central domestic airport, and in Chiang Mai. A key competitive advantage that leads Nok Air to be the top budget domestic airline and to gain higher market share is using the product differentiation. Nok Air differentiates itself from other competitors in terms of routes and periods. The firm offers a variety of routes and periods to passengers to enjoy with Nok Air compared to other competitors in the market of low-cost airline. Expanding flying route is one of the firm’s strategies to serve more passengers.
As a full-service airline, Qantas has identified and configured its niche consumers “willingness-to-pay” and focused all its strategic activities around it. The company’s business model as a full-service airline offering a large number of benefits in terms of flexibility to travel large number of destinations, connectivity to different hubs at major international airports, flying long distances, different travel class of “comfort’ including Business and First amongst others. The operational effectiveness of Jetstar versus its parent airline, Qantas is also a major hindrance. Besides the cannibalization fear, the fact that the airlines industry is very high on competitiveness, with other players on the international scene having the infrastructure (more number of planes) and financial prowess to effectively counter the launch of a smaller player like JetStar, should also be considered. Jetstar would need to invest heavily in infrastructure and advertising.
Organizational culture differs from a company to another, depending on the nature of work. Frequently, a remarkable diverse combination of qualities and standards, administer the cultural environment of an organization. A system of common meaning held by associates that differentiates the organization from other organizations is what we mean by organizational culture. In today 's quickly changing business atmosphere, the cultural make-up of an organization perform a decisive role the achievements of the organization to accomplish its vital targets. In this essay, the reader will be able to recognize the organizational culture of Etihad Airways, which is one of the biggest well-known airways in the airline industry.
Allowing for private investors to participate in the TSA would create an environment for innovative security structures. Investors would be incentivized to increase profits through airport checkpoints and would alleviate the federal government from funding the administration. The current workers for the TSA consists of 42,000 officers which isn’t enough to meet market demand (Zorthian). Each airport has various management complications to overcome and each location needs to rapidly adjust their workforce, to avoid being unproductive. If airport passenger screening is privatized the screening performance would most likely be enhanced by decreasing management issues and allowing for adaptable budgeting.
Threats: FlyDubai just like any other business faces threats to its existence. For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive