Although Southwest Airlines themselves are not making the aircrafts, it allows their manufactures cost to remain low due to they are buying products in bulk. The third of those being the advantages gained by spreading fixed production cost over a large production volume. (Hill, Schilling, & Jones, 2017) Again, aircrafts are not a simple process. Big aircraft companies such as Boeing and Airbus produce aircrafts as quick as possible. It does indeed help though, when Southwest Airline deals with just
To be able to share this product with its partners will give Etihad a potential advantage in attracting customers, particularly given the importance of the virtual network. Conclusion The rapid expansion of the group’s network and access to newer and larger markets is a benefit to all parties. Through the Etihad Partners, Etihad Airways continues to accomplish its own success while boosting the business of the other airline partners with mutually-beneficial alliances, some of which may not have been able to survive without Etihad’s intervention, or would have been relegated to a more marginal status if involved with another investor. Despite the recent trouble regarding regulatory authorities in both Europe and the US the strategy is moving full steam ahead unabated. Strong organic growth by Etihad is aided by extensive commercial partnerships, strengthening the carrier’s hub through a lower capital investment approach.
Airport needs to have a current marketing strategy in place that can be regularly reviewed and which keeps up with economic, environmental, and industry issues. Muscat international airport marketing department often focuses on easily defined objectives, such as growing domestic air carrier options and bringing in more cargo business, and refining the facility 's marketing objectives to reflect current economic conditions, the marketing team also can use more innovative strategic objectives to help to increase the airport 's revenues. To set marketing Strategy for our new Muscat international airport, we study marketing strategy of other GCC airport for example Dubai international
An airline company must make sure that the services provided don’t have any substitutes in the market. This is because the passenger will tend to go for the airlines company that offer lower price and high quality provided by the airlines services. In the market, there are a lot of competitors that provide a lower total cost of a trip that the passengers can grab compared to what Ryanair Holdings had offer. This is because, even though this airlines company offer low cost, eventually the price would still be expensive due to the additional cost for the services that are supposedly included in the ticket price such as online travel cot and golf clubs. There are also cost that are irrelevant to be charged to the passenger such as delay or cancellation fees that make the substitution are readily in the market because other airlines company are not charging their passenger with this kind of costs.
LCCs have even a lesser threat to this kind of substitute threat. Threat of New Entrants- As there is a high level of investment in the Aviation industry, and the customers tend to be partial to the existing airlines that offer what they want, the threat to new entrants is rather low. In the current state of operations, Ryanair has built itself strongly in its Core business, as well as Ancillary services. Working on customer experience, in most countries in the European Zone, Ryanair is now no.1 or no.2, except France and Germany. (Please ref Exhibit
Also, some airport hubs cannot consolidate traffic bound for many itineraries. Having this limitation and knowing the fact that some passengers prefer non-stop flights, consideration of both hub-stop and non-stop routing strategies can be more cost-efficient than a pure hub-and-spoke network (Jeng 1987). In other words, non-stop flights are always the most desirable in terms of convenience but on the other hand less desirable in terms of price for price sensitive customers. Moreover, the stops at the hub airports increase the expenses for the airline companies due to the facility charges and landing fees. Therefore, the airlines can generate more revenue by considering these key parameters and applying best network routing
"From a customer standpoint, providing an on-time, reliable product to keep their revenue premium to the industry and superior operating structure. From an investment standpoint, managing capex and investments in aircraft combined with solid aircraft utilization to generate the best returns for investors." Q7 What aspects of the company’s strategy do you believe represent the biggest challenges for Delta? "Given their outperformance over an extended period of time, there is a general concern that Delta is at peak operating performance relative to peers and that over time, others will adopt Delta's playbook and eat away at their competitive advantage. It's just being able to prove out that the playbook they've used in the past is a sustainable way of keeping their competitive advantage in the future as others adopt similar practices."
Etihad Airways Executive summary The report deals with the marketing plan audit which critically analyzes the “Etihad Airways” in terms of different aspects. Initiating with the PESTEL analysis it examines the Airways macro environment on Political, Socio-cultural, Ecological, Economical, Technological and Legal factors. It also surveys the Etihad Airways social responsibility, its key target markets, and the major competitors Emirates and Air Arabia airways were also analyzed. A SWOT and A SWAN analysis as well as the positioning will incorporate the marketing plan audit. The main results that emerged were that Etihad Airways is operating in a highly competitive market.
In the last decades, aviation or airline industry represented higher level of business growth rapidly. Additionally, in terms of business development airline industry is playing effective role in enhancing global trade, international business investment and activities in tourism sector. In reference to specific roles, it can also be illustrated that airline business industry is the major focus of globalisation for other business sectors. The improving airline industry offers number of opportunities and challenges to different business organisations functioning in specific industry. However, the challenges don’t arise only due to higher market competition rather because of enhancing demands of customers in order to attain better quality of service.