Low Cost Airlines Essay

The airlines do not focus on the combination of quality and good service at a fair price; its focus is instead only on providing ultra low cost. It also charges customers for value added features and services. Thus the pricing is value added pricing. When compared to the competitors of Spirit for operating costs per seat mile; it is lower compared to other major airlines. The important points like encouragement to demand stimulation and preference for its low-cost model makes it successful for its low-cost pricing strategy.

Or even if the flight service is of a lower standard, flyers are sometimes willing to compromise on that aspect for a much lower fare. Of course there are factors like customer loyalty and flight duration to be considered when choosing an airline to fly with. However, low cost still rules over flight services, especially for short distance flight.

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

Cathay Pacific might present a complementary budget airlines subsidiary or alliance which offers essential carrier services with a lower fare. It will broaden its market share through an affordable price. This option extends its proportion of the entire industrial sales through minimum investments with maximum profitability. But it might be blemished likewise because the brand of C.P. was not initiated for budget traveling.

2) Compare the articles with the contract services account information. Do you notice anything that might lend credence to your theory that Syntech could be a shell company?

American airlines is a corporation that exhibits all of the characteristics of a firm in an industry where good tactical management is the key to success. This company and its regional airline partner American eagle serve almost 250 cities around the world and operate more than 3600 daily flights. Its goal is to provide safe, dependable and friendly air transportation along with related services, making a great effort to transform any experience into a positive one. All of the services that this company has and the image that they are trying to keep in every day activities make each day an inevitable challenge for its employees.

* Market. The market is a huge weakness with the economic downturn and people flying less, they are having a harder time to keep the basic fares down low enough for people to fly.

fares to establish profitability and loyalty. However, they are not always the cheapest, so their

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

Because of their cheaper fares, the larger airlines are forced to hold down the cost of their flights in order to still attract customers. Of course when a smaller regional carrier does not service a destination that one of the larger carriers does, then any potential cost savings is lost. Another point worth noting is that several of these regional carriers are subsidiaries of a larger airline.

The main reason for the low-cost subsidiaries’ failure is the airlines’ corporate strategy. By launching a LCC as a unit inside the same corporate structure (e.g., single scheduling and pricing centre for United Airlines’ and Shuttle’s low–cost flights), traditional airlines limited the LCC’s flexibility and independence. By building a low-cost carrier on top of a traditional carrier cost-structure, the parent company was also tempted to think low-cost when setting ticket prices, but not trying (or being able) to reduce traditionally high costs: the airline had now two unsustainable business models instead of one!

3. Tickets are expensive compared to other airlines that provide the same services at cheaper rates.

To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel