Lucky Air the Beginning

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1. What are Yunna Lucky Air’s best options? Lucky Air chose to follow the model of the Southwest Airlines in the United States. Lucky Air is a domestic airline located in China. Because it is a low-cost and high-efficiency airline it doubled the amount of passengers since 2007. E-commerce was a risk Luck Air decided to take on because other airlines were now offering low-cost high-efficiency flights. E-commerce by definition is commercial transactions conducted electronically on the internet. This is a good way to stay in competition with other airlines. E-commerce allows airlines to cut out the middle man such as sales agents and sales offices. Its downfall however is that because they cut out the middle man allowing their rates to be…show more content…
This allows Lucky Airlines to emphasize on something that they do better than their competitors. (Hill pg.387) They were also influenced by loyalty programs. There were incentives for the people that purchased their tickets with Lucky Air. They gained loyalty points for being a frequent flyer. While people still look to the prices, having a loyalty program that gives you points and cheaper flights is always a plus. Another good point that they did was targeting college students. Since a lot of college students look to travel the world Lucky Air directed its attention to its students. Also considering its fleet which consists of a mixture of 737s and A320s. They need to look ahead in the possibility of their fleet growing. They will need to consider and gain market education as well as getting market shares. An LLC may be an option they are looking into. A low cost model or a hybrid. As many airlines are transitioning it would be beneficial for them as well. Knowing the costs of checking in, food service, as well as delays and cancellation. Another factor to think about fuel. What the cost will be if they do expand. Since they have to pay beforehand until they are well established that should be on the list, it all needs to be put into consideration. The strengths of Lucky Air was its IT operations. Hainan Airlines was its parent company and it looked to them for their It
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