Opportunities Premium Economy Finally The roll out of the much needed premium economy class in Singapore Airlines is expected in the second half of this year. Singapore Airlines has resisted introducing this class even though it is a matured product offered by many airlines for sometime. The premium economy class should boost competitiveness as Singapore Airlines main competition on some of its European and Australian routes are offering this product, which seems to have become a hit with corporate passengers. According to CAPA (2014, para. 45), the revenue which this class of travel could bring if introduced on the right routes will give Singapore Airlines yields a much need boost.
Thus, the power of the suppliers is high, since the suppliers have a grip on the market due to the huge demand of their manufactured products. Moreover, suppliers can affect the industry through their capacities to raise prices or reduce the quality of purchased goods and services. Bargaining Power of Buyers The buyers in the airline industry are demanding more and better quality services .The bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies.
The discrepancy is a reflection of the market positions of these two companies as “British Airways” had market power substantial enough to greatly increase revenues in the pre-divesture period. The market structure of airline industry is oligopoly. This means that there are only a handful of companies that compete in this industry of airlines. Oligopoly is more competitive that monopolies, industries for which there is only one seller of the product in market but they are less competitive than industries that experience near perfect
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
4. Discuss the impact of any two (2) external environmental factor that challenges Ryanair company to remain competitive in the airline industry? (20 marks) Political or legal processes and legislation is one of the external environment that influence decision making made a firm that must comply with regulation which is how organization try to influence government and how government affects businesses. Among the challenges that face by Ryanair is increasing legislation in Europe that give negative impact to their business model and also increasing the cost of operation of their business. The increased cost of operation in Ryanair was adverse the aim of this company that wants to offer lower fares to their customer besides lower costs-
fierce between 2 LCCs or when a LCC plans to enter a full service airlines sector. This is also true the other way around. Bargaining Power of Buyers can be ranked as moderate with LCC’s coming into the picture since the deregulation of the industry and internet making it easy to book and fly. Customers tend to stick to known companies which have a strong presence in the market. Thus, it is safe to say that there is low-to-moderate bargaining power of buyers in this sector Bargaining Power of Suppliers The three main costs for the airlines are fuel, labour and Airport charges.
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.
The union member called for the airline to the number of cabin crew to serve a higher number of passengers in economy class seating than first-class seating. However, looking at 10-abreast holdouts like Cathay and Singapore Airlines can be a disadvantage to Cathay. As there are not enough passengers willing to pay a high-class premium for Cathay. And passengers are willing to pay more for 9-abreast either than that they are not willing to pay enough or are not numerous enough. As Will Horton, a H.K.
Success always set business entity apart from their competitors this was constantly maintain by Etihad to achieve its core values, competences while aiming for more achievement in the future. In the year 2008 which happened to be the 5th year of successful running the airways Etihad received an international award of excellent these awards includes best world leading airline, marketing strategy been able to adopt the use of new innovation, and four star
(Singapore Air, n.d.) It later split in 1972 into two separate airlines – Singapore Airlines and Malaysian Airline System, following Singapore’s independence and the two countries’ conflict of outlook and priorities. (Roll, 2014) The airline, initially only serving Singapore and various destinations in Malaysia, gradually expanded its services not only to neighbouring countries like Indonesia and Vietnam, but also to European countries, with London being their very first transcontinental destination. Long-haul flights like these were made possible thanks to innovative improvements and better and larger capacity aircrafts. (Singapore Air, n.d) Figure 1: Singapore