Introduction Air transportation is a relatively young means of transportation than by land and sea transport. It is often referred to as the most regulated transportation as it is governed by various national provisions (including air hubs) which are subject to international terms. One of the objectives of any airlines is to ensure safe‚ regular‚ and comfortable flights. In addition‚ all the flights should be economical for airlines company (Nasution‚ 2007: 202-204). However‚ having a commercial
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field. Aircraft manufacturers‚ e.g. Boeing and Airbus carry brand name and are established manufacturers in the world‚ and there are not very many manufacturers in the world. Aircraft manufacturers can also switch from supply to commercial carriers to defense carriers or‚ can either choose a different buyers or short supply aircrafts due to economical changes or market conditions. 2. Buyer Power: Airline industry is quite large and worldwide spread and there are small and large players in the airline
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AirAsia current issues The leading low fare airline in the Asia – AirAsia has been expanding rapidly since 2001‚ to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts‚ AirAsia flies to over 61 domestic and international destinations with 108 routes‚ and operates over 400 flights daily from hubs located in Malaysia‚ Thailand and Indonesia. To date‚ AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more
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The low cost carriers or LCCs have intensified the competition and no airline can afford to remain competitive without cutting down on the air fares for its passengers. Socially also there has come a big difference in the consumer demand pattern and previously. The business travelers who once were indifferent to air fares are now not anymore willing to pay high fares for the business class which can be multiple times the low cost airfares. Passengers’ preference for the low cost carriers has risen
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some ways in order to find new ways to grow. More specifically‚ David Barger‚ the new CEO of JetBlue faces some important challenges: • Softening demand • Increasing fuel prices • Managing the departure from the classical low cost carrier (LCC) approach of limiting its fleet to just one aircraft • Determining how the reduction in new plane deliveries should be distributed across the E190s and A320s? • How should JetBlue position itself to counter the competitive challenges
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study “kulula.com: Now Anyone can fly” are the minimal requirements customers expect in respect of characteristics of products or services (such as safe air transport from one location to another at a relatively low price) provided by any airline carrier. In order to be successful‚ they have to carry out their business from a certain value-based perspective within the identified market constraints (such as threat to existing competitors‚ structural difficulties‚ load factors barriers‚ non-availability
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Porters Five Forces Model & the Airline Industry Robert Warren 6/11/2011 Abstract Having conducted research on Porter’s Five Forces Model and the current business climate of the airline industry‚ I will be analyzing the industry using the Five Forces Model. Porter’s Five Forces model is a highly recognized framework for the analysis of business strategy. Five forces are derived from the model that attempts to determine the competitive intensity‚ competitive environment and overall
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Bhd in 2001‚ with a vision to make air travel more affordable to Malaysians. With that in mind‚ Tony and his three partners bought over AirAsia from its owner DRB-Hicom. Tune Air’s initial project was to remodel AirAsia into a low fare no frills carrier after successful low fare airlines such as U.S.-based Southwest Airlines and Dublin-based Ryanair and create a new aviation product in Malaysia. Under Tony’s leadership‚ the fledging airline with a RM40 million debt became a blooming‚ thriving business
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quickly recognized a budget or low cost airline is a carrier who offer cheap flights‚ no luxuries in a no-frills setting. The first mover in the European market was an Irish company called Ryan Air. The company was formed in 1985 by Michael O ’Leary and is now the leading budget operator in the European aviation industry with a net profit in 2014 of 522.8 million Euros (O‘Leary & Bonderman‚ 2014). Drawing inspiration from the United States Budget Carrier South West Airlines the industry now accounts for
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AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND AirAsia was established by a Malaysian conglomerate in 1993 and commenced operations in 1996. In 2001‚ due to the airline heavily in debt‚ AirAsia was bought by Tony Fernandes of Tune Air Sdn. Bhd from DRB-Hicom. Tony took up the RM40million debt as part of the purchase. In 2002‚ AirAsia generates a profit and launching new routes from its hub in Kuala Lumpur. In 2003‚ the airline opened a second hub at Senai International Airport‚ Johor Bahru and launched
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