Low cost Carrier
Introduction
The airline industry has been plagued by factors such as overcapacity, commoditization of offerings or competition, high level of rivalry, entry of low cost carriers. other factors include several macro-level socio economic troubles, SARS crisis, 9/11 attacks, bird flu, Asian Tsunami and other terrorism concerns, due to this there has been a big impact on airline profit.
As market condition is continuously changing, it is difficult to predict the future of the airline industry. the overall industry as we see it is in a weak position, even though the demand is rising. companies now are providing additional services at low cost and decreasing the fare to attract the customers. this assessment will underline the following issues and airline strategies, * Revenue and cost structures of full service network and low cost carriers. * financial challenges confronting the airlines * key factors affecting revenue and cost * approaches taken by airlines to maximize revenues and reduce costs * analyzing Singapore airlines past 5 years bank statements
Low cost Carrier
In a nutshell, low cost carriers are airlines that operate a point-to-point network, these airlines usually have a lower pay grade then the full service network airlines and the offer no extra services when on flight.
Full service network carriers
Full service network carriers or Legacy are airlines the focus on providing the customer an abundance of services either on flight (IFE) or at the airport (business lounges), they even include different service classes and connecting flights. these airlines are usually referred to as hub and spoke airlines. http://ec.europa.eu/transport/modes/air/doc/abm_report_2008.pdf Revenue and cost structures the operating costs of any airlines is divided into 2 section, which is operating and non operating costs, o operating costs are then further divided into direct and indirect costs.
The airline industry has been plagued by factors such as overcapacity, commoditization of offerings or competition, high level of rivalry, entry of low cost carriers. other factors include several macro-level socio economic troubles, SARS crisis, 9/11 attacks, bird flu, Asian Tsunami and other terrorism concerns, due to this there has been a big impact on airline profit.
As market condition is continuously changing, it is difficult to predict the future of the airline industry. the overall industry as we see it is in a weak position, even though the demand is rising. companies now are providing additional services at low cost and decreasing the fare to attract the customers. this assessment will underline the following issues and airline strategies, * Revenue and cost structures of full service network and low cost carriers. * financial challenges confronting the airlines * key factors affecting revenue and cost * approaches taken by airlines to maximize revenues and reduce costs * analyzing Singapore airlines past 5 years bank statements
Low cost Carrier
In a nutshell, low cost carriers are airlines that operate a point-to-point network, these airlines usually have a lower pay grade then the full service network airlines and the offer no extra services when on flight.
Full service network carriers
Full service network carriers or Legacy are airlines the focus on providing the customer an abundance of services either on flight (IFE) or at the airport (business lounges), they even include different service classes and connecting flights. these airlines are usually referred to as hub and spoke airlines. http://ec.europa.eu/transport/modes/air/doc/abm_report_2008.pdf Revenue and cost structures the operating costs of any airlines is divided into 2 section, which is operating and non operating costs, o operating costs are then further divided into direct and indirect costs.