Virgin Atlantic Case Study

This is what Nok Air can offer better than its competitors. However, the disadvantage is the current Nok Air’s operating cannot generate enough profit. 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).

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

The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry:

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. However, what they really are trying to advertise is that they can provide a safe and secure environment in their

Consequently, this also increases customers cost and reduces Verizon’s profitability, which is extremely hard to recover in the end. However, with that being said, Verizon will typically never have an issue with this mainly due to their vast resources and number of available suppliers. In Fact, Verizon has the ability to choose from a large pool of suppliers regarding the needed supplies for their network infrastructure or the manufacturing components for their immense products. Verizon also believes that their diverse group of suppliers will provide the highest quality products and services that’s both affordable and dependable for their customers.

Besides, customers are intend to choose a cheaper costs airlines operators when the economy is suffering It is considered that the airline industry is a cyclical system. Airlines have to scope with high fuel prices, labor demands, operating and maintaining costs, and declining passengers. So, any fluctuation in the oil price will have a direct effect on the currency and also impact the cost of flying for Virgin Atlantic as well. 3) LEGAL Noted that passenger safety is more important than anything else, Virgin Atlantic offers a high regulated political environment where passengers are favored over the

Opening up of industry and availability of financial resources, reduces this barrier. Strong branding forces new comers to invest heavily on attracting customers from the present airlines. However, branding has not been very effective in keeping the customers in airline industry. Thus threat of new entrants in airline industry is high particularly in low-cost segments. Only very high efficient operations can keep the new entrants out of industry.

The airline market is controlled by these suppliers. If EasyJet decide to purchase a new model of an airplane, it must use only this model of an airplane, because the cost of switching to another model by the same supplier would be very expensive. Nevertheless, if switching to an another supplier, the costs will be more expensive, because the company will need to retrain pilots as well as it will need to reorganize the whole supply chain for spare parts. Other important suppliers are airports. Because some LCCs try to avoid high fees from big airports, nevertheless EasyJet uses large airports, but it flies at off-peak times to reduce its

It is essential to minimize these conceivable wellsprings of anxiety to expand pilots' intellectual burdens, which influences their observation, memory and consistent thinking. 3.0 THE EFFECTS OF STRESS IN AVIATION In flying, at all periods of flight, pilots are subjected to various measures of anxiety, how they respond when subjected to push will at last represent the deciding moment whether the result is a protected and fruitful flight. 3.1 Stress In Aviation Industry A carrier pilot can be an amazingly upsetting in employment because of the workload, obligations and security of the a huge number of travelers they transport the world over.

Regulation Economic regulation needs to be independent of government and incentive-based. Where an airport has significant market power incentive-based regulation is the only price regulation that will deliver efficiency gains. Airports usually have high credit ratings and can bear risk more easily than airlines. Regulation should be designed to facilitate this.

While Israel does already produce aircraft, most of that is normally small, military-purpose aircrafts. Many commercial planes come from other countries. Bombardier does have a history of loss, and there have been several reports of their prices being slightly too high, but there are also numerous reports about the new C-Series being a pickup for them, something that can bring them back up in the competitive market, and decrease their loses, maybe even give positive income. It is also beneficial that this specific model is a small aircraft, but one of the larger ones, which can carry more people on a small aircraft than usual, but still remain small enough for short flights. The aircraft market is also quite strong in most of the Middle East, and Israel is one of the strongest.