We know the airline industry since more than 3 decades. The operation has changed time to time depending on the market trend and competitor positioning. Another factor was technological advancement as well IT, which gave extra boost to the airline industry. Not only it enhanced their operational strategies but also become cost saving in the end. For some the technological advancement became a success and for some it was not good, it was either they foresee it well on time and updated the operation accordingly or others who failed did not. Regardless, people (customers) are the one who benefited from all of this.
Since 2001 the competition between the airlines have changed it is not who has the most advanced planes but those who are succeeding in the business irrespective of their size and market positioning. Those airlines are low cost other than tradition (premium) airlines, which have captured the domestic as well in some areas they are giving trouble in international flights (Button & Ison, 2008).
The hard truth is that the low cost airlines are generating more profits as compare with premium airlines even in the condition of economic down turn. The reason is that they use their resources more effectively as compare with premium airlines. In this resource are airplanes and others will be discussed further?
Utilization of Resources
As we have studies that utilizing the resources effectively and efficiently, that is, the way any organization cannot only be profitable but also they can lead in their field. Let us see how low cost airlines are utilizing their resources as compare with premium airlines.
The low cost airlines are profitable because they are utilizing their resources meaning aircrafts in this sense. Low cost airlines always keep their airlines in the air longer than premium airlines (Finch 2008, P33). According to Finch (2008, p33), after researching he wrote in his articles that low... [continues]
Cite This Essay
(2010, 09). Low Cost Airline. StudyMode.com. Retrieved 09, 2010, from http://www.studymode.com/essays/Low-Cost-Airline-416489.html
"Low Cost Airline" StudyMode.com. 09 2010. 09 2010 <http://www.studymode.com/essays/Low-Cost-Airline-416489.html>.
"Low Cost Airline." StudyMode.com. 09, 2010. Accessed 09, 2010. http://www.studymode.com/essays/Low-Cost-Airline-416489.html.