Low-cost airlines Essays

Ryanair is a famous low-cost airline company which was established in 1985 by Tony Ryan family. It’s headquartered in Ireland and provides services across Europe. Ryanair was built on Southwest Airlines model, which is highly successful in US, and now Ryanair is one of the most successful and profitable low-cost airlines in the world. In this work, I would like to analyse Ryanair’s external and internal strengths and imperfections. My first examination will be on external analysis, which is also

A high price would not attract customers and demand would be low as shown above. If the cost of flights were decreased it would attract more buyers and increase the quantity, generating revenue from the lower price. An elastic price is beneficial for QantasLink as it will generate revenue, but only if the elasticity of demand is more than one. QantasLink is able to charge a higher price for business than for leisure travellers due to time constraints, for businessmen, this is a valuable resource

Budget vs premium airlines: secret behind their performance Budget and premium carriers, success is the limit An air carrier requires a strong balance sheet as well as a highly visible brand proposition. It also envisages sound operational strategies, that evolve in a continuously dynamic environment. Although, the list could be exhaustive, operating characteristics like high margin routes, strong network on flight paths, value for money and low-flexible overhead costs are a few significant parameters

the low-fares model in Europe and it is the largest European low fares airline. As the time changed, there are many threats come and hurt the Ryanair airline. However, in the recent years, Ryanair keep changes and make a development on its brand image and made a lot of efforts to attract more customers and use the past bad experienced to teach them to become better in future. After Ryanair faced all the challenges in the airline business for many years, it is managed to become a biggest low-fares

SOUTHWEST AIRLINES Olarte, Chow, Chan, Yada, Nakamura, Huang TIM 431 Case Analysis Southwest Airlines Alyssia Ashley Olarte, Tori Ann Chow, Chi Ian Chan, Yuto Yada, Daniel Nakamura, Lena Huang School of Travel Industry Management University of Hawaii at Manoa Spring 2018 Table of Contents A. Introduction ........................................................................................... 3 History ...............

Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion

Southwest Airlines is competing against other airline companies for customers. That is why it is essential that Southwest Airlines enforces strategies that allows them to outperform other airline companies. This gives them a competitive advantage, which is defined in the textbook as the achieved advantage over rivals when a company’s profitability is greater than the average profitability of firms in its industry. (Hill, Schilling, & Jones, 2017) The higher the profitability levels are of Southwest

substitutes “The threat of substitutes for Virgin Atlantic is low in the developed countries where people mainly use airlines for both short and long distance travel”. “Virgin has a high group of substitutes. Leading substitutes include innovative products such as IPhones, Blackberries, Times Warner Productions, and Google products. Some of these substitutes products prices are lower, creating buyers to face few high switching costs”. On the other hand, in the developing world, there are threats

is a British budget airline, founded in 1995 by Sir Stelios Haji-losnnou, based in London Luton Airport. It operates both domestic and international scheduled services of over 820 routes in more than 30 countries. It operates on a low cost budget, flying more than 15 million people a year and offers services for leisure and business passengers. It also flies to 100 top European routes and connects to many different exciting destinations all over the world. easyJet uses cost advantage as well as

JetBlue was founded on the history of American aviation, in 1999 with an initial capitalization of $130 million. JetBlue 's strategy was to combine common sense with innovation and technology to "return humanity to air travel". David Needleman founded Jet Blue based on his own experiences and seeking to improve the expectations of his clients, collaborators and associates, thus making the service excellent. . Despite the competition, JetBlue has had ambitious growth plans, focusing particularly on

EasyJet is the largest airline of the United Kingdom, which is based in London, Luton Airport. It was founded in 1995 by the British entrepreneur Sir Stelios Haji-loannou. EasyJet operating domestic and international scheduled services in 32 countries. EasyJet experience fast growth since its establishment, the main reason for this growth is a combination of several acquisitions and consumer demand for low-cost airlines. Strategy is “the direction and scope of an organization over the long term,

Financial analysis (internal analysis): Financial analysis shows increase in profit margins. Analysis showed that Ryanair airlines were still in profit even after cancelling the flights but their market share prices decreased. The cost of maintenance, marketing, distribution and rental aircrafts increased but there is a decline in operating margin which led to higher profit margins. Ryanair may face loss in profit in coming days if they refund the 400000 affected customers. External analysis: It

WestJet was able to remain successful amidst stiff competition from other airlines, a factor that led to other airlines trying to mimic WestJet’s culture and operations. Close competitors trying to copy WestJet’s culture would threaten their market, but Beddoe made it clear that it was impossible for the other companies to adopt their culture. Beddoe explained that it was doubtful for a company with many employees to change the mentality of everyone. From Beddoe’s statements, it is evident that the

state of the economic environment. The recession back in 2008 had a huge effect on all airlines and holiday operators due to its high-income elasticity. "The recession in 2008 and 2009 represented the first time that passenger numbers had fallen for two successive years, CAA figures showed" (News.bbc.co.uk, 2010). One major economic factor is the value of the pound, as British Airways is one of the only airlines flying to destinations across all 6 continents, the value of money and the perceived financial

of New Entrants. In the airline industry, the arrival of a new airline can be disruptive, particularly since new carriers tend to focus on high-value route corridors and bill themselves as bargain carriers. On the other hand, the cost of entry into the market is fairly high, and that fact together with the industry’s reputation for lim-ited profitability makes such disruptions rather rare. The airline industry needs huge capital investment to enter and even when airlines have to exit the sector,

travel services at a lower cost (Shrivastava, 2012). A SWOT analysis of JetBlue airlines shows that despite the numerous opportunities and strengths it has, it is exposed to threats and weaknesses that pose challenges in its operations. The threats include issues like strong competition from other airlines and the volatility of the fuel prices.JetBlue Airlines is relatively new to the market when compared to its major competitors such as the Southwest and Delta Airlines. Most of its strategies have

for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation

Introduction: Ryanair is an Irish low fare airline which was founded and named by Ryan family in year 1984 with bases at Dublin and Stansted airports. Ryanair was bought into operations in the year 1985. From a small company, it has grown to a big carrier company across Europe. At first, the aircraft used to carry 15 seats from Waterford to Gatwick airport and back again for short distances. Passengers began to increase and they expanded their business from one country to another thus spreading across

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

2012, the airline accumulated the losses of over Rs. 7,000 crore with half of its fleet grounded and several members of its staff going on strike. In November 2010, in order to cater heavy debts and interest from the loans taken, the company went in for debt restructuring. As a part of it total of 18 leading lenders agreed to reduce interests and convert part of debts to equity. Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost. But high