Chapter 2 Characteristics of the Airline Industry The real difficulty in changing any enterprise lies not in developing new ideas‚ but in escaping from the old ones. John Maynard Keynes 2.1 Introduction In recent years‚ the European airline industry has exhibited impressively dynamics. The sector has gone through a drastic change on both the supply and the demand side. Unlikely in other industries‚ the driving forces governing the recent changes do not depend mainly on technological factors
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Selection of and Justification for Alternatives Competition There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website‚ but they now also have the ability to compare everything regarding the flights from plane types‚ durations‚ layovers‚ connecting flights‚ additional fees and fares on
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entry DA is one of the oldest airlines in the United States‚ however‚ there are still threats from new entrants in the market because low-cost carriers (LCC) definitely going to affect the pricing strategy of DA. In contrast‚ DA has brand loyalty due to its long history of operation. Moreover‚ the entry barriers are still high due to the operating cost such as aircraft‚ airport cost‚ maintenance‚ route licenses‚ and taxations. The threat of substitution Since the airline industry is serving passengers
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3110 L1 Case Report: Southwest Airlines What is SWA’s competitive strategy? What does it take to execute the competitive strategy? The SWA has adopted ‘Cost Leadership’ as its competitive advantage. And it has achieved low cost through numerous ways. To commence with‚ the Southwest workforce routinely turn around an aircraft in only 15 minutes and its gates are manned by a single agent and have a ground crew of six or fewer‚ which are much lower than other airlines. In other words‚ the SWA needs
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Survey among airlines. Airline industry is a labor intensive service sector as much as capital intensive and mainly white collor workers are employed. In the industry computerized electronic systems are highly used. In order to produce an aviable seat for sales‚ there are many interconnected services are gathered such as resevation‚ ticketing‚ operations‚ passenger traffic‚ handling of passenger‚ baggage and cargo‚ catering‚ maintenance (MRO)‚ training‚ fuelling etc. While airlines render many
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SABENA BELGIAN WORLD AIRLINES The company Sabena was the Belgian air carrier and one of the oldest in the world. It played it most crucial role in the development of Belgium’s colonial ties to Africa >> The airline was an important component of Belgium’s national sovereignty. The dependence on African routes resulted in long run problems after the colonies achieved independence >> Even losing money‚ the Belgium government continued to support it due to historical and employment importance.
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Malaysia Airline System (MAS) is one of the Government Linked Companies in Malaysia. For the past three years‚ MAS has been undergone dramatic changes that turnaround the position of the company inside the competitive and ever challenging airline industry. From its lowest and disastrous experience in 2005 to achieving success within 2 years as well as bracing the impact of global economic crisis in past two years. The purpose of this report is to analyze MAS key competitive position and its strategic
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an extension of probation and 5% leave. Senior managers at SIA believe that everyone‚ no matter how senior‚ has a training and development plan with clear goals. The famous ‘‘Singapore Girl’’ undergoes training for 15 weeks‚ longer than any other airline and almost twice as long as the industry average of 2 months. Thistraining includes not only functional skills such as food and beverage serving and safety training‚ but also soft skills of personal interaction‚ personal poise‚ grooming and deportment
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Airlines Differentiation In the world of airlines there is a huge market for varies airlines that offer different services to the customers to gain the competitive advantage. In the following article we will outline the differences between airlines like: “Emirates airline”‚ “Qatar” and “Air Arabia”. Those airlines will mainly differ in following criteria’s: • Price is one of the most important differences that airlines would have among each other. Looking at Emirates that has competitive
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[pic] Eagle Airlines Business Decisions with Data Models Assignment on Risk Analysis Team Members: Sfykti Dimitra Goumas Evangelos Manikas Athanasios Papaspirou Yiannis As assigned by Mr. Hadjistelios‚ President of Eagle Airlines‚ a simulation analysis is developed in order to evaluate company’s intention to proceed with the purchase of a new aircraft. According to the President’s estimations‚ the uncertain parameters which affect the annual cash flow are the below;
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