In general Airline industries continues to facilitate through international investments, various world trade and majority of tourism. The Airline industry’s over-all profits are seen mainly in their economic growth and world trade. In the 1990’s, the airline industry was struggling due the current era’s world recession and the Gulf War had effected oil prices which effected gas prices. The passenger rates of international airfares dropped substantially in 1991, the loss of travel during the Gulf War effected global tourism. The imporatance of Stakeholders in the Airline industry pays big dividends in the success of air
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.
2).However all these faltered when Qantas’ past marketing manager took over during 2011. The airline is financially weak and its share price has slumped. Virgin Australia Airlines has a strong market value and image owing to its innovative ideas and creative thinking. It operates a rapidly growing fleet basically comprising of Jets and Airbuses. The low average fleet age helps the company to reduce maintenance cost of the aircrafts.
Airlines were responsible for the large USD17 billion of economic losses globally. The returns generated by airports are weighed down by the US, where airports are owned by local governments and funded by tax-efficient municipal bonds. They are not run to generate a return in their own right, but to bring wider economic benefits. Outside the US, airports generally produce higher returns, often aided by price regulation.” (CAPA,
Introduction FlyDubai is a low cost airline that was established at the heart of the global recession by optimistic investors. The airline flight coverage is to regions that are within five hours margin of flying from Dubai. The airline was established by the Emirates government. The airline is not a competitor to the major airlines but poses competition to other low cost airlines. This marketing audit aims at looking at the potential markets for the airline and establishing ways of being established in them.
Jetstar would need to invest heavily in infrastructure and advertising. The other critical issue which could be a cause of failure in the international routes is “straddling”. Given the fact that the airline industry entry barriers are quite low for existing players, bigger airlines could easily copy the “Jetstar business model” and Jetstar would have to accordingly adapt its strategy through non profitable “positioning trade-offs” which could hurt its profitability in the long
In the image it is very evident that the stewardesses are very helpful to their clients. Each of them are busy providing assistance to the passengers and it is difficult to imagine how they would function with only two or even one stewardess. The picture clearly demonstrates the advertisements slogan of “extra hands assure extra luxuries”. In today’s standards, riding an airplane is not only for wealthy people. Airlines no longer need to make it clear how they pamper their passengers on flights.
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.
Looking at the respective case studies, SIA, EA and Lufthansa have shared similar challenges like striving for cost effectiveness and differentiation from competitors. Despite these similarities, SIA and EA seem to have survived throughout as an individual highly recognized brands while being involved in Star Alliance overshadows Lufthansa. As well, Lufthansa also operated with higher labor costs than low-cost players or emerging market competitors – years of union advocacy, pension fund obligations, and industry regulations forced these airlines to devote a larger share of revenues towards labor benefits. EA advantage mostly comes from government support and their self sufficient in fuel compared to the other two airlines. External factors like fuel prices or government factors may affect the airlines, but the root of sustaining competitive advantages still lies within the organization’s strategies and core values in order to gain
Those benefits can build a good relationship with the customer because they like to pay less and get many benefits to purchase products and services. Furthermore, customers may find lower prices or higher discounts with a small number of firms in the oligopolistic market. The others will also cut prices to prevent losing their market share when a business started to cut down its price. Firms might have to sacrifice some profits in order to keep customers or reduce the rivals while lower prices to benefit consumers. For example, customers can find discounted air fares which allow them to enjoy the best flight deals with Air Asia.