Multimedia University BRM8014 Advanced Marketing Case Writing The Low Cost Carrier Model - Air Arabia Student Name: Abdelbaset Queiri Student ID: 1111800065 1. Introduction Amidst the global crisis in the airline industry‚ figures from the International Air Transport Association (IATA) report that actual passenger traffic worldwide has increased 5.9% from the previous year for the period Jan-Sep 2006. Alarmingly‚ the Middle East has shown the strongest
Premium Airline Low-cost carrier Southwest Airlines
Today’s aviation environment is much different then the one we had almost 30 years ago. Our old environment was highly regulated in terms of how the airlines operated economically. Before the Airline Deregulation Act of 1978 the CAB (Civil Aeronautics Board)‚ now the FAA (Federal Aviation Administration)‚ regulated all domestic air transport as a public utility‚ setting fares‚ routes‚ and schedules. The CAB was the driving force behind the entire airline industry. If an airline wanted to start
Premium Airline Southwest Airlines Low-cost carrier
not lasting a full 12 months in the industry and established low cost carrier company Kulula.com’s parent company Comair slipping into the red for the year ended December 2011 (Comair declares six-month loss amid rising costs‚ (n.d)). I will be discussing the macro-environmental forces that are affecting the domestic airline industry‚ with a focus on the South African industry. I will also analyse consumer behaviour in the low cost carrier market and the airline industry in general‚ by finding out
Premium Low-cost carrier Airline Southwest Airlines
------------------------------------------------- Top of Form Low-cost carriers: growth expectations After a decade of rapid development‚ low-cost carriers in mature markets are now having to expand their horizons‚ both demographically and by geography‚ to keep their foot on the accelerator Financial results for low-cost carriers over the past 12 months show the sector underlining its continued profitability credentials. After coming out of the 2009 meltdown relatively unscathed compared with
Premium Low-cost carrier Airline Southwest Airlines
Delta Air Lines (A): The Low-Cost Carrier Threat Problem: Delta Airlines didn’t have a comprehensive response to low-cost carriers across functions. Option: Delta should launch its own low-cost carrier. Problems: Nearly all major airlines had done this unsuccessfully‚ proved unsustainable over time‚ never had a high-cost carrier transformed into a low-cost carrier. Since deregulation (1978) the average return on investment below cost of capital for the 5 largest carriers. Due to 9/11 the demand
Premium Airline Delta Air Lines Los Angeles International Airport
customers and build strong customer relationships. (Kotler & Armstrong‚ 2010).Nowadays‚ the competition among airline industries is very challenging as more low-cost airlines were blooming. Besides that‚ they were also facing the challenges from those well-known airlines such as MAS. Therefore‚ a research regarding AirAsia- World’s best low-cost airline was conducted in order to investigate the company. The main objective for this assignment is to evaluate the effectiveness of existing market mix
Premium Low-cost carrier Airline Marketing
Key Success Factors in the Low Cost Airline Business: Low cost airlines strive to meet the basic demand of airline customers - a safe air transport from one location to another location - at a relatively low price. In order to be successful‚ they have to carry out their business from a certain value-based perspective - “less for much less” – and concentrate their attention on the following Key Success Factors of their industry: - Overall low costs: Overall low costs are essential to be able
Premium Airline Low-cost carrier Southwest Airlines
full service carrier until the low cost carrier‚ no one can avoided the competition‚ it’s about competing or die. Low Cost Carrier in airline industry begin more famous start since 36 year ago by southwest airline‚ which now is the third largest airline in the world. AirAsia from Malaysia that start their operation in 1996 and transform their carrier into Low Cost carrier in 2001 after bought by Tony Fernandes. Not just AirAsia also Tiger Air from Singapore come with their Low Cost Carrier‚ and also
Premium Low-cost carrier Airline Southwest Airlines
Low cost airline For low cost airline their aim is to achieve offer low price and no-frills for the customer to let the customer to get profit from the lower price. The industry believes in providing convenient services on their passenger to by making traveling easier and affordable. Hassle-free‚ no-frills‚ and low fare services for their target market‚ convenience of their target market. The industry believes in providing convenient services on their passenger to by making traveling easier and
Premium Airline Low-cost carrier Southwest Airlines
dependence of tourism and airline industry on each other. One of the best ways to keep this interdependence alive and foregoing was the introduction of the low-cost airlines. The low-cost airlines as the name suggests are amazingly cheap but for every additional thing (from food to luggage)‚ the customer has to pay but another plus point of low-cost airlines besides being cheap is that it promotes tourism vastly. As nicely said by Thomas Fuller‚ “The
Premium Low-cost carrier Airline Southwest Airlines