...------------------------------------------------- Does the South-East need more airport capacity? What are the arguments in favour of expansion? Heathrow currently runs at close to 100% capacity with demand for air travel predicted to double in the next 25yrs. With this increase in demand, Heathrow arguably will not be able to cope without a third runway. Heathrow needs extra capacity if it is to reach the levels of service found at competitors elsewhere in Europe in countries such as Germany in the Frankfurt Airport, or it will be overtaken by its rivals. The third runway will boost the economy by a predicted £7bn a year to the economy, according to airport owner BAA. Some say a third runway is the only solution to the congestion at Heathrow. Tens of thousands of jobs will be created in construction of the runway in the short term: and for business and in tourism over the longer term. Lack of expansion at Heathrow would threaten London's position as trading capital of the world, stifling the international links Britain was built on. Business leaders such as Barclays Bank argue London deserves and needs an airport of international quality. The airport said it would be able to cater for 130 million passengers compared to 70 million today, "allowing the UK to compete with our international rivals and providing capacity for the foreseeable future". Those pushing for the new runway argue that pollution caused by the airport will be closely monitored and kept to low. By 2020, when the runway...
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...Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative. One of the stakeholders group is customers. As they are the most important part of the business, without them you cannot operate the business. If u doesn’t have customers for whom will you produce...
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...Fulfillment of the Course Requirements for MGMT 533 Federal Regulations, Ethics, and the Legal System Table of Contents | Executive Summary | ii | An Overview and History of the Passenger Facility Charge Program | 1 | Passenger Facility Charge Limits and the Arguments For and Against Raising the Limits | 2 | The Statutory and Regulatory Aspects of the PFC Program | 5 | A Recommendation Regarding PFC Limits | 6 | Works Cited | 7 | Executive Summary As established by the Aviation Safety and Capacity Expansion Act of 1990, the Passenger Facility Charge (PFC) program – codified at 49 U.S.C. §40117 and regulated by 14 C.F.R. Part 158 – allows airports enplaning more than 2,500 passengers per year to charge passengers up to $4.50 per each flight segment but not more than $18.00 per round trip ticket (Price & Forrest, 2012). PFC funds are collected by the airlines, forwarded to the airports by the collecting airlines, and must be expended by airports for projects directly related to safety, security, capacity, noise reduction, and carrier competition enhancement (Price & Forrest, 2012). This paper will provide an overview of the PFC program and examine the program’s history, detail the arguments for and against an increase in current PFC limits, examine the potential implications or benefits of an increase or of keeping the limit where it is now, and discuss the statutory and regulatory aspects of the PFC program. Finally, this paper will make a recommendation...
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...Executive Summary Porter Airlines, a short-haul commercial airliner established in 2002, have enjoyed significant and steady growth since inception. The concern now is to devise a solution that will allow Porter to continue its controlled expansion strategy, as it has been so successful and integral to the growth of the company over the past several years. Situation Analysis Porter Airlines operates in a fiercely competitive airline industry, where competitors compete based on price, service, and comfort of passengers, and frequently engages in predatory practices to squeeze out smaller players in the market. The performance of the company depends on external environment factors, such as economic factors of oil and fare prices that will influence margins, or political factors impacting the future bridge and accessibility improvements to the city center airport. Porter’s competitive advantage is linked to the convenience of the Toronto City Center Airport, such as proximity to business core and expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies. Alternatives and Recommendation ------------------------------------------------- Several alternatives were provided...
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...INTRODUCTION Background in Brief Ryanair was established by the Ryan family with a staff of 25. Its first route was launched in 1985 with a 15-seat aircraft ferrying passengers between Waterford in Ireland and London. In 1986, Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus, the two dominant airline carriers on that route, by offering fares at lower prices. With two routes in operation, Ryanair carried 82,000 passengers in its first full year of operation. By 1993 Ryanair has carried over 1 million passengers. In 1995 Ryanair overtook Aer Lingus and British Airways to become the biggest international scheduled route carrier in Europe. The Organization Today Ryanair now operates more than 1,500 flights per day from 57 bases on 1,500 low fare routes across 28 countries. It connects 178 destinations and operating a fleet of 305 new Boeing 737-800 aircraft. In 2012, Ryanair had a team of more than 8,500 employees and carried over 78 million passengers. Ryanair’s main business is to provide “low-fare-no filling” airline services. Ryanair also offers various ancillary services including in-flight sale of beverages and food, car hire services, internet-related services etc. To expend its network, Ryanair, which already owns 29.82% of Aer Lingus in 2012 announced its intention to acquire Aer Lingus by making an all cash offer of €1.30 per share for its entire share capital. Ryanair recorded a profit of €503 million in...
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...superior. The second step of the business model framework is to emphasize the architecture of the business and how it enables the company to achieve its aims. Let’s focus on each of the six components of the company infrastructure. ✓ Ryanair aims at offering the lowest prices of the market. Low fares are the main competitive advantage of the company, so whatever the context is they try not to raise prices. Even when fuel costs soared, the company CEO, Michael O’Leary declared that they would be “no fuel surcharges not today, not tomorrow, not ever”. ✓ Ryanair’s flights are point to point only, in order to reduce costs (fuel charges, airport cost…). On those flights, there is no business class. Moreover, the company chose secondary airports as airport charges are lower than in main airports. We can Ryanair also offers ancillary services including non-flight services such as hotels or car rental service, and services on board like online gambling or in-flight mobile phone service. Ancillary services have very high margins and generate an increasing part of the company revenues. To quote M. O’Leary they are “always trying to sell you something”. ✓ In terms of distribution, e-commerce has a significant role to play: 95% of purchases are made on the Internet....
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...Investigating T&T sector Trends * Frequency of holidays * Greater flexibility * Independent travel * Adventure travel * New destinations * Expansion of regional airports Increased frequency of holidays People in western countries are able to enjoy more holidays now than ever before, this is due to… * People becoming more affluent * Travel prices falling * Travel becoming easier It is not unusual for British families to take a holiday abroad once a year plus additional short breaks and holidays in the UK and overseas. The effects of this increase in frequency of holidays has positive impacts across many travel and tourism component industries, especially low cost airlines, train companies, hotels and European cities/regions that can promote themselves as short break destinations. Where do you think the most popular destinations are? 1. Spain 2. France 3. Greece 4. USA 5. Great Britain 6. Italy 7. Turkey 8. Egypt 9. Croatia 10. Thailand Greater Flexibility How do people research for holidays nowadays? Intenet Using the internet offers people great flexibility than buying standard holidays from a travel agency. It also allows tour operators to sell a wider variety of destinations and holiday products online. This has a positive effect on online travel companies, but a negative effect on high street travel agencies. Independent travel is gradually increasing at the...
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...STRATEGY Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s strategy are: Low Fares. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s Dublin to London (Stansted) route is its largest route in terms of passenger volume, with fares ranging from 0.99 to 199.99 (excluding government taxes and passenger service charges). Ryanair’s competitors generally do not operate a one-way pricing policy, so direct comparison is not possible, but current round-trip fares on Aer Lingus, Ryanair’s largest competitor on the LondonDublin route, for travel in September 2004 were 82.27 for economy...
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...Case study: EasyJet: The Web’s favorite airline Introduction In modern world, easyJet is becoming one of leading airline companies in Europe. When people want to buy cheapest airline tickets, they always consider easyJet. This essay will have three sections. Firstly, analyze the structure of the industry in which easyJet competes. Secondly, talk about the industry attractive after later 1990s. Lastly, some evidence will be provided to suggest that easyJet has competitive advantage. Structure of the industry analysis - five forces model The business structure was influenced by industry competition; the industry competition depends on five basic competitive forces which were threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or service and rivalry among existing firms (porter, 1980). Threat of new entrant: EasyJet airline belongs to airline industry, new entrants want to go into this industry need enough capital and the equipments in this industry were all expense. In order to build up an airline company, the founder needs to have enough money to buy or lease some planes. So the new entrants have a high cost of entry. In addition, the new potential entrants also need some extra capital to pay for the losses due to less of experience. Low-cost tickets in EasyJet were the significant competitive advantage. The new entrants were hard to exceed EasyJet. So the threat of new entrant has low competitive to EasyJet...
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...associated with energy consumption (Cliff et al, 2011). This fact signals about Ryanair’s increasing bargaining power towards its main supplier, Boeing. However, the supplier switching costs for Ryanair is extremely high due significant amount of expenses involved associated with pilot retraining needs. Moreover, “airline pilots have a strong bargaining power in the airline industry” (Pelapu et al, 2007, p.48), because there is no abundant supply of highly qualified and experienced pilots. Nevertheless, Ryanair enjoys rapidly increasing power towards a different category of its suppliers. Specifically, as Walsh (2011) confirms, highly intensified level of competition among airports has significantly increased the bargaining power of airline companies in their business relationships with the local airports. New Picture 52 Ryanair Porters Five Forces Analysis Bargaining power of customers Bargaining power of customers can be explained as “an advantage that comes from gathering together to put collective pressure on producers to lower prices or improve quality” (Business Dictionary, 2012, online). Ryanair customers enjoy high bargaining power because switching to another airline is simple and not associated with additional expenses. However, it has to be mentioned that only for Ryanair, but for airline industry in general “the bargaining power of buyers is relatively high and increasing, since most airline companies...
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...Introduction: Porter Airlines has managed to find success where many small carrier airlines have not. The company has survived predator competition from Air Canada to become a recognized brand in South Eastern Canada for the time-sensitive business traveller segment. The company has developed a loyal customer base and continues to capitalize on its strengths which include it location, ownership of the Billy Bishop Airport. Despite its success the company is currently focused on expanding its operational efforts both nationally and cross-border to the US and must consider a variety of options which can achieve this. Situational Analysis: External Environment: PESTEL: Political: Porter operates largely within Canada. Its home terminal is located in Toronto so it largely affected by the political environment in Canada, at large, but more specifically by the political environment in Ontario. The local and national political environment in Canada is relatively stable as there are no significant unrests in the country to impact the operations of the Porter Airlines. Economic: The economic environment in Canada has also been stable in recent years. Inflation rates are currently decreasing and lower than the GDP growth rate of 2.63% . The stabilization of oil prices will lead to savings for companies since fuel costs are a major expense for most airlines. Tax policies are favourable for Canadian corporations. However, the Canadian dollar has been experiencing recent instability...
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...operations 5 Airport security 6 Cargo operations 7 Airport technical services 8 Air traffic control 8 Aircraft scheduling 9 Airport emergency services 9 Airport access 10 Infrastructure 12 Regular flights 14 Operational management 15 Connecting transport 15 Conclusion 16 Reference list 17 Appendix 18 Introduction The airport is located 10km east of Dortmund, Germany and sine 2006 its original name is “Dortmund21”, in connection to its major shareholder- DSW21. The slogan of the airport is “Näher als man denkt” (Closer than you think) and stays for the variety and high quality of flights served by the airport. Statistics show that in 2008 the airport has served more than 2.3mil passengers. The structure of the following paper will be as follows: general information about the airport, several different aspects of the industrial operations of the airport will be analysed: the baggage handling; passenger operations; airport security; airport technical services; air traffic control etc. The report will finish with a conclusion- summery of the most important points. General information Dortmund airport was officially founded on 16th April 1925. It was first served by commercial flights of Aero Lloyd, which operated flights to Paris. In 1926 it started with 12 in going and outgoing daily flights of the newly formed Deutschen Lufthansa AD. By the year 1928 the airport reported 4319 take-offs and 4321 landings. At the beginning of the 2nd World War the airport was taken...
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...rates 6 Security Factors 6 The Threat of close substitutes and rivals 7 HIGH FIXED COSTS; 7 AIRPORTS 7 PORTER’S FIVE FORCES 9 Threat of new entrants 9 Suppliers: 9 Buyers: 9 Substitutes: 9 Competitive rivalry: 9 Section B 10 Firm Infrastructure 10 Human Resource Management 10 Technology Development 11 Procurement 12 Inbound logistics 12 Operations 12 Outbound logistics 13 Marketing and Sales 13 Service 13 Margin 14 Joint Venture 14 SECTION C 15 Ryanair Business Strategy 15 Low Fares: 15 Customer service: 15 Frequent Point-to-Point Flights on Short-Haul Routes: 15 Low Operating Costs: 15 Taking Advantage of the Internet: 16 Commitment to Safety and Quality Maintenance: 16 Enhancement of Operating Results through Ancillary Services: 16 Analysis of the airline business models 16 Ryanair’s strategy in future: 17 Focused Criteria for Growth: 17 New Aircraft-markers: 18 New design ‘standing seats’ 18 SWOT Analysis 19 Strengths 19 Weakness 19 Opportunities 19 Threats 19 BIBLIOGRAPHY 20 RYANAIR THE COMPANY The company was incorporated in 1995 and became Ryanair limited, and in 1996 it changed to a holding company for Ryanair limited. Registered no: 249885 and located in Ireland and with registered offices at: Ryanair limited Corporate Headquarters Dublin Airport Co Dublin Ireland Phone: 353-1-812-12121984 Fax: 353-1-812-1213 Ryanair is a public limited...
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...Overview of the Company Ryanair started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). In 1986, inspired from the story of David and Goliath the company go after the big guys for a slice of the action and end up smashing the Aer Lingus or British Airways high fare cartel on the Dublin-London route. The staff increased from mere 57 to 120 staff members and the plane carried for about 82,000 passengers on two routes. In 1989, the company employed 350 staff and their average maximum passengers increased to 600,000. In 1990-1991, the company has 700,000 passengers. However, despite of the increase of passengers, the company is not so good in managing cost that the company has lose its money. A new management team is brought in to sort it out and re-launch as a “low fares or no frills” airline, closely modelling the Southwest Airlines model in the U.S. And in 1994, Ryanair bought its first Boeing 737 aircraft which carried over 1.5 million passengers. In 1995, Ryanair is the biggest passenger carrier on Dublin-London route, the largest Irish airline on every route being operate and carried 2.25 million passengers in the year (Harrison, 2002). In 1997, the EU air transport deregulation allowed the airline for the first time to open up new routes to Continental Europe with over 3 million passengers on 18 routes carried. Ryanair...
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...proposed Civil Aviation Policy. These may be sent to the DT section, Ministry of Civil Aviation, Rajiv Gandhi Bhawan, New Delhi, India; or e-mailed to Dtsec.moca@nic.in Views of some stake-holders already received are placed below for reference and cross fertilization of ideas. While giving your views, please mention specifically if you have any objection in keeping your views in public domain. Your views may be sent before 20th February, 2012. A core group will deliberate on these inputs received and the draft policy formulated will be put up for further consultations. ( G. Asok Kumar ) Joint Secretary asok.kumar@nic.in Tel.: 24617692 1. INFRASTRUCTURE View Suggestions Airports a) Green Field b) Brown Field c) Heliports d) Role of Govt. agencies like AAI e) Private participation in Airport development f) Low cost, no...
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