...SUMMARY Qantas Airlines – Crisis in the Making Since the year 2000, Virgin Blue has stormed into the Australian domestic airline scene with great success, quickly capturing 25% of the market with their low cost pricing strategy. As CEO of Qantas you are worried. Your internal analysts are predicting that Virgin Blue's market share will likely grow to reach on third of the market by next years, if left unchecked. Part of Virgin Blue's success lies in its clever balance of cheap airfares while still retaining profitability. Unfortunately, it is virtually impossible for Qantas to compete with Virgin Blue on cost since most of your employees and major capital investments are already locked into long term contracts. Qantas has also built up a reputation over the years for offering exceptional service. If you are to reduce prices, you will not be able to maintain the level of service you currently provide. The situation is also not helped by the fact Singapore Airlines, the premier airline in the South East Asian region, has entered the low cost provider business with a new venture called Tiger Airways. Although starting out small, Tiger also has the potential to cut into the low end of the Qantas customer base. The challenge is clear, you must build a new loct airline in order to survive. You have thought of a new name – Dragon, although your other senior management prefers the name Jet Star. Regardless of the name, there are many issues to consider before this new project can get...
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...POSITIONING STRATEGY WITH A NEW IDENTITY: A case study of VIETNAM AIRLINES by Le Hong Dac A research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration Examination Committee: Dr. Truong Quang (Chairman) Dr. Clemens Bechter Dr. Lalit.M.Johri Nationality: Vietnamese Previous Degree: Bachelor of Economics University of Agriculture and Forestry HoChiMinh City, Vietnam Scholarship Donor: The Government of Switzerland Asian Institute of Technology School of Management Bangkok, Thailand August 1999 Acknowledgement I wish to express my profound gratitude and great appreciation to my advisor Dr. Truong Quang for his valuable guidance, advice and encouragement throughout the research study. Special thanks are extended to the other members of the Examination Committee, Dr. Clemens Bechter and Dr.Lalit.M.Johri for taking interests and giving valuable suggestions to improve the content of this study. Deep appreciation and thanks are also extended to Mr. Luong Hoai Nam, Mr. Trinh Ngoc Thanh, Mr. Duong Tri Thanh, Mr. Mai Quoc Tuan, Mr. Nguyen Thuong Hai, Mrs. Nguyen Thi Minh Yen and Mr. Le Dinh Tuan of Vietnam Airlines Corporation for providing me the desired information and data for this research study. I fall short of words...
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...External Environment analysis Summary There have been turbulent times for the Australian airline industry. It has been confronted with the marked decline in international tourism in the aftermath of the September 2001 terrorist attacks in the US and, more recently traffic loss attributable to war in Iraq and severe acute respiratory syndrome (SARS) outbreaks in part of Asia and Canada. And off course, the global financial crises in 2008. While the domestic airline industry is largely deregulated, Australia’s international airline industry remains quite deregulated at the commonwealth level, as it is subject to the detailed capacity controls of airline service agreements (ASAs) that underpin the industry. These agreements control the amount of airline seat capacity which may be deployed on scheduled services over individual country to country routes; they are general of treaty status and are enforceable in international law. In another move to free up the international side of the industry, the Commonwealth adopted a policy of allowing more than one Australian owned international airline to operate scheduled services to and from Australia. However the September 2001 failure of the Ansett Airlines group brought an end to Ansett International's short-lived operations. Although Qantas is once again the only Australian flag carrier, Virgin Blue has signalled its interest in operating in some international markets in Australia's immediate region, such as the trans-Tasman market...
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...Name Instructor Course Date Emirates Airlines In the Middle East, Emirates Airlines is one of the market leaders in the air transport industry. It operates about 2,200 flights in a week across the whole world with its main hub in Dubai, UAE (Shaw 67). The company engages in offering commercial air transport services both in the UAE and internationally. This includes cargo, postal and passenger carriage services. Moreover, the company engages in offering retail and wholesale consumer goods, institutional and in-flight catering and hotel operations. Its headquarters is in Dubai where the coordination of all operations including flight takes place. The company was founded following the collapse of the Gulf Air in 1985 (Doganis, The Airline Business in the Twenty-first Century 56). It serves approximately 134 destinations in about 60 countries with a fleet size of 218. The mission of the airline mission is to deliver the best in-flight experience in the world. The values and visions of the company involve a stable and strong leadership team. The company believes in business ethics as the foundation of its success. It cares for both stakeholders and employees, the environment and the society it servers (Doganis, Flying Off Course: The Economics of International Airlines 75). The company plays a major role in shaping the future of the air transport industry. Given the associated dangers of terrorism in the Middle East, the airline airport surveillance and security is high...
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...Managerial Economics Term Paper DEMAND IN THE DOMESTIC AIRLINE INDUSTRY OF INDIA Submitted by: Akshata Shirodkar ePGP-02-002 This term paper explores the rational economics behind the demand and its affect on dynamic pricing in the domestic airline industry in India, where both of these vary often with time and units available. Based on the learning gained during microeconomics course, this paper analyses the current pricing strategies and norms practiced by the airline industry. Managerial Economics Term Paper Demand in the Domestic Airline Industry of India CONTENTS 1. INDUSTRY OVERVIEW ............................................................................................................................................... 3 1.1 MARKET SHARE ................................................................................................................................... 3 1.2 INDUSTRY GROWTH ............................................................................................................................ 4 1.3 CAPACITY VS DEMAND ........................................................................................................................ 5 2. AIRLINE INDUSTRY CUSTOMERS ............................................................................................................................... 5 2.1 CUSTOMER SEGMENTS ..............................................................................................................
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...4 MAGIC CARPET AIRLINES: CLIMATE OF THE AIRLINE INDUSTRY Appendix A Prior to the Deregulation Act of 1978, the airline industry was federally regulated in regards to the routes airlines flew and the fares they charged. Typically, when carriers negotiated labor contracts they gave a specific percentage increase in wages and then petitioned the government for a similar percentage increase in their fares. With full deregulation, airlines were free to fly any routes, pay any wages, and to charge any fares they wished. Deregulation resulted in the formation of many new airlines. These new carriers were usually non-union and had substantially lower labor costs; thus, they charged lower fares. Competition for passengers forced the older carriers to lower their fares and to reduce service to smaller cities with unprofitable routes. To cope with deregulation, companies made other changes. Airlines realigned their route systems. They developed "hub and spoke" systems whereby passengers were funneled into a hub city by a small regional carrier utilizing small aircraft (as represented by a spoke on a wheel). Travelers connecting at a hub city from a small airline then transferred to the major. To encourage these transfers, major airlines began contracting with smaller regional airlines to provide this spoke system for their hub cities. This arrangement gave new opportunities to regional carriers. However, to obtain such arrangements, regional airlines had to also cut...
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...A PROJECT REPORT ON “CARTELS IN AVIATION INDUSTRY” (Report submitted on July 12, 2011) SUBMITTED TO: COMPETITION COMMISSION OF INDIA BY: PREETI MECHAN Vth YEAR GUJARAT NATIONAL LAW UNIVERSITY Email: preeti.mechan@gmail.com 1 DISCLAIMER This project report/dissertation has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for academic purposes only. The views expressed in the report are personal to the intern and do not necessarily reflect the view of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. 2 TABLE OF CONTENTS I. II. III. IV. Acknowledgement.........................................................................................4 Objective........................................................................................................5 Research Methodology.................................................................................5 Chapter I Introduction...................................................................................................6 V. Chapter II Aviation Industry in India............................................................................7 History of Aviation Industry...
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...Ibrahim Osta, Chief of Party. TABLE OF CONTENTS I. II. EXECUTIVE SUMMARY 6 THE ENVIRONMENT IN WHICH KHIA WILL MARKET 1. APPROACH AND RELEVANCE AT KING HUSSEIN INTERNATIONAL AIRPORT 2. SCHEDULED AIRLINES AIR SERVICE PLANNING PROCESS 3. CHARTER SERVICE AND TOUR PROGRAM PLANNING PROCESS 4. AIRLINES’ ECONOMIC DECISION-MAKING CRITERIA 5. PROACTIVE AIRPORT LEVERAGE – Prodding the carriers 6. PRESENTING A COMPELLING DESTINATION MARKETING PROPOSAL 6 13 13 15 17 19 20 21 III. AQABA THE DESTINATION – Issues for Consideration 1. AQABA HOTEL AVAILABILITY 2. AQABA HOTEL ARRIVALS KING HUSSEIN INT’L AIRPORT MARKETING PLAN 1. INTRODUCTION 2. STRUCTURE OF THE KHIA MARKETING STRATEGY 3. KHIA AT A GLANCE 4. CURRENT BUSINESS 5. COMPETITIVE DESTINATIONS / AIRPORTS 6. POPULAR EUROPEAN CARRIERS AIRCRAFT 7. KHIA MARKETING OBJECTIVES 8. KHIA MARKETING RESEARCH FOR DECISION SUPPORT 9. MARKETING CAMPAIGN DESIGN & EXECUTION 10. MAINTAIN TRADE RELATIONS 11. SALES MISSIONS IN SUPPORT OF NEW BUSINESS 12. PR / ADVERTISING & PROMOTION 13. BRANDING 14.ESTABLISH STAKEHOLDER PARTNERSHIP PLAN 15. ACCOUNT MANAGEMENT APPROACH 16.INTERIM MARKETING ACTION KHIA MARKETING DEPARTMENT STRUCTURE 1. STAFFING REQUIREMENT 2. ORGANIZATIONAL STRUCTURE TARGET AIRLINES AND TOUR OPERATORS 1. ROYAL JORDANIAN 2. LCC AIRLINES OPERATING IN / SERVING THE REGION AND PROSPECTIVE TOUR OPERATORS 22 23 25 26 26 27 27 27 34 35 37...
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...A Financial Analysis of Southwest Airlines Co. Accounting for Financial Decisions BA812 Professor Wayne Drake May 20, 1998 Gillian Ainsworth Jennifer Goidell Christine Ledoux Tarak Modi Gerald Owens Robin Walters Southwest Airlines: Twenty-Six Years of “LUV” Twenty-six years ago, Rollin W. King scribbled three lines on a cocktail napkin, leaned across the table, and muttered to his longtime friend: “Herb, lets start our own airline”. Herbert D. Kelleher loosened his tie and knitted his brow before replying: “Rollin, you’ crazy.” He then paused, grinned, and added, re “Lets do it!” 1They founded Air Southwest Company in 1967. The company incorporated as Southwest Airlines in Texas, and commenced customer service on June 18, 1971. They began with three Boeing 737 aircraft serving three Texas cities – Dallas, Houston, and San Antonio. Today, Southwest Airlines operates more than 243 Boeing aircraft and provides service to more than 50 airports located in 49 cities in more than 24 states. Southwest Airlines offers approximately 2200 low fare, short-to-medium range flights throughout the United States.2 Their stock-exchange symbol “LUV” symbolizes their home at Dallas Love Field, as well as the theme of their customer relationships. Today, Southwest is the nation’ low fare, high customer satisfaction airline. Southwest has literally s written the book on low fares. The airline has never pretended to be anything more than a bus service. With an average flight distance...
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...m31: Home AssignmentCover Sheet Quality ManualVersion 5 2014-15 | Student(s) Name and ID: | Course Code and Title:Integrated Project Quality management. BUS4956 | Date: | Section:CLW | Submission Deadline:week 16 Late submission results in losing grades. For every working day delay the maximum grade decreases by 5%, up to a maximum of 35% after a week. Also note, not following the formatting guidelines an additional 10% may be lost. | Name of the Course Team Leader /Academic Coordinator (Moderator):Dr.BeenaSalimSaji This Assessment and the related Marking Scheme have been pre-moderated and approved by the Course Team Leader/Academic Coordinator of the Business Department according to the following criteria * The learning outcomes are covered as indicated in the assessment strategy. * The questions are clearly constructed and at an appropriate academic level. * The possible marks for each question are clearly stated. * The amount of time for the exam is properly allocated. * The level of English language is clear and suitable for the course. * The marking scheme is clear and detailed | Academic Format Reports/Essays submitted must follow the APA (American Psychological Association)thehttp://owl.english.purdue.edu/owl/resource/560/01/.Formatting and language contribute exactly ten percentage points to the overall grade. | Warning to Students! Students must submit their own works as assignments, and they cannot copy anybody’s ideas into their...
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...------------------------------------------------- WESTERN GOVERNORS UNIVERSITY ------------------------------------------------- Submittal Cover Sheet ------------------------------------------------- ------------------------------------------------- Date: 7-21-2015 ------------------------------------------------- Student Name: ------------------------------------------------- Student ID Number: ------------------------------------------------- Student Degree Program: BS-IT ------------------------------------------------- Student Email: tryyg@wgu.edu ------------------------------------------------- Four Digit Assessment/Project Code: ENT1 ------------------------------------------------- Mentor Name: Tiffany Trissel-Griffey ------------------------------------------------- For Revisions Only Indicate Previous Grader: ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Submit to: ------------------------------------------------- Western Governors University ------------------------------------------------- Attn.: Assessment Delivery Department ------------------------------------------------- 4001 South 700 East, Suite 700 ------------------------------------------------- Salt Lake City, Utah 84107-2533 ------------------------------------------------- ------------------------------------------------- wgusubmittals@wgu.edu ...
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...17, 2016 Business Research Project Airline X was started in 1967 and over the last 49 years it has grown and made a name for itself by having the lowest fares in the market. Airline X refuses to charge their customers the same sort of fees as the other airlines, not charging for bags, Airline X also does not charge to modify your flight if your travel itinerary has been changed, this has created a faithful customer base. In 2014, Airline X was able to increase their flights beyond the neighboring states that the Federal Government had limited them to for 34 years. In the first quarter of 2015 Airline X increased their passenger traffic by 22 percent and decreased their fares by 14 percent. Airline X currently carries more passengers domestically than any other Airlines (Southwest Airlines, n.d.). Airline X has employed Team C to explore the connection between the independent (fuel and oil prices) and dependent (the amount of seats available) variables for Airline X. The premise is that if Airline X is filling the planes they already have, does Airline X need to look at purchasing more planes to increase the amount of seats available and to replace the outdated or older jets in their fleet. To accomplish this Team C must develop a research question. The management team for Airline X has decided that the research question should be: If the fuel and oil prices do not continue in a downward trend will it still be feasible for Airline X to order the newest plane in the Boeing...
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...• A strategic analysis report relating to Jetstar Airlines o A competitive analysis of the market/s including: A brief description of the history of the company and a history of the main competitors. Include joint venture alliances where applicable. History of the company Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group). Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent. Jetstar Pacific based in Vietnam (majority owned by Vietnam Airlines with the Qantas Group holding 30 per cent). Jetstar Japan, a partnership between the Qantas Group Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. Jetstar Hong Kong, a partnership between China Eastern Airlines and the Qantas Group (subject to regulatory approval). The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 100 million passengers since it launched in 2004. In the past financial year ended June 2012, the Jetstar Group carried more than 20 million customers. The Jetstar Group has grown from providing...
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...Write up on Case Study of Air India Airlines Group Members: Anukriti Dave Nitu Thomas Vishwa Patel Air Indian Airlines into trouble 1. Introduction Success of the Airline Industry depends on cordial relationship between the employers and the employees. Inflexibilities in deployment of the workforce, supported by rigidity in labor legislation, have all added to the woes and have now begun to affect employment generation as well. All these changes are believed to have impacted employment and employee relations and therefore, resulted in catastrophic breakdowns in industrial relations across the country. Being held at a time when the business scenario is proving to be a challenge for both employees and employers as businesses come under increasing pressure to keep stakeholders satisfied. These changes have implications both for the organization and the employees. As a consequence the nature of relationship between the employees and the employer is impacted. Industrial disputes are a menace to industry and society. Managing an Airline is unique and challenging, the quality of services of Airline heavily depends on the quality of human resource it deploys. Airline companies must have potential human resource policies that help the organization to attain its goals, enable it to employ the skills and abilities of the workforce efficiently, assist to bring about employees job satisfaction and self-actualization and establishing and maintaining harmonious Employer-Employee Relations...
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...Unclassified AIRLINE COMPETITION -- Background Paper by the Secretariat -18-19 June 2014 This document was prepared by the OECD Secretariat to serve as a background note for Item IX at the 121st meeting of OECD Competition Committee on 18-19 June 2014. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. More documents related to this discussion can be found at http://www.oecd.org/daf/competition/airlinecompetition.htm. English - Or. English JT03358883 Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DAF/COMP(2014)14 TABLE OF CONTENTS Introduction ................................................................................................................................................. 3 1. Features of the airline industry ............................................................................................................. 4 1.1. Liberalisation of the air transportation industry .......................................................................... 4 Business models and industry consolidation............................................................................... 6 1.2. a. LCC entry and new business models...
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