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Operating Management

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Operating Management
Assignment First Page Student ID number(s): | 30855399 | Student Name(s): | Jin Wang | Module Name: | Operations and Process Management | Module Tutor: | Professor Mike Pidd and Dr. Jerry Busby | Essay/Project Title | Operation Strategies of Low-Cost Airlines and the Fight Back of Established Airlines | Word Count: | 1,823 | Assignment Due Date: | 17 December, 2012 |

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1. Introduction
Low Cost Airlines (LCAs) are airlines provide cheap prices for relatively short-distance flights in a specific region. The typical low cost airlines are Ryanair, Easyjet, Southwest, and Air Asia. This essay mainly discussed the competition in European market. First, it will describe the main features that LCAs have. Next, it continues to discuss the operations strategies linking to the marketing strategies. At last, it will discuss the impact of LCAs on traditional airlines and the actions Full Service Airlines took responding to the emerging of LCAs. 2. Main Features, Marketing and Operation Strategies of the Low Cost Airlines
LCAs generally operate routes under the cost limitation or cost leadership strategy. They normally perform operations of low-/no- frills and point-to-point, online (internet) or direct ticket sales,



References: Alderighi, M., Cento, A., Nijkamp, P., Rietveld, P., 2012. Competition in the European aviation market: the entry of low-cost airlines, Journal of Transport Geography 24, pp. 223-233. Detzen, D., Jain, K. P., Likitapiwat, T., Rubin, M. R., 2012. The impact of low cost airline entry on competition, network expansion, and stock valuations, Journal of Air Transport Management 18, pp. 59-63. Doganis, R., 2006. The Airline Business, London: Routledge. Haji-Ioannou, S., 2002. Ready Freddie, New Statesman, June 24, Vol.131 (4593), pp.51 (2). Hunter, L., 2006. Low Cost Airlines: Business Model and Employment Relations, Europe Management Journal Vol. 24, No. 5, pp. 315-321. ITF, 2002. ITF Survey: The Industrial Landscape of Low Cost Carriers, London. Klophaus, R., Conrady, R., Fichert, F., 2012. Low cost carriers going hybrid: Evidence from Europe, Journal of Air Transport management, Vol. 23, pp. 54-58. Martinez-Garcia, E., Rerrer-Rosell, B., Coenders, G., 2012. Profile of business and leisure travelers on low cost carriers in Europe, Journal of Air Transport Management 20, pp. 12-14. Mason, K.J., Alamdari, F., 2007. EU Network Carriers, Low Cost Carriers and Consumers Behaviour: a Delphi Study of Future Trends, Journal of Air Transport Management, 11(1), pp.19-25. Mikulic, J., Prebezac, D., 2011. What drives passenger loyalty to traditional and low-cost airlines? A formative partial least squares approach, Journal of Air Transport Management 17, pp. 237-240. Pels, E., 2008. Airline Network Competition: Full-service Airlines, Low-Cost Airlines and Long Haul Markets, Research in Transportation Economics 24, pp. 68-74. Poon, T.S.-C., Waring, P., 2010. The lowest of low-cost carriers: the case of Air Asia, The International Journal of Human Resource Management, Vol. 21, No. 2, pp. 197-213. Wit, de J., Zuidberg, J., 2012, The Growth Limits of The Low Cost Carrier Model, Journal of Air Transport Management 21, pp. 17-23.

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