Low-cost carrier

Southwest Airlines is one of the United States major airlines and the world largest low-cost carrier. According to the U.S. Department of Transportation, Southwest Airlines is the United States’ largest carrier in terms of originating domestic passengers boarded. Financial Ratio Analysis The decreasing of current ratio from 0.785:1 to 0.744:1 from 2013 to 2014 suggests that Southwest Airlines’ short term debt paying ability also decreases. This is not a good sign because it implies that either

to this foreign competition and domestic pressures the Airline Deregulation Act of 1978 was passed. Deregulation meant the market would be generally free from government controls and operate under free-market principles. By the early 1980s new carriers flooded the market causing an initial drop in fare prices. In this new market Airlines such as Pan American and TWA suffer financially. Many of the large legacy airlines that operated successfully under the guidelines of the Civil Aeronautics Board

Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia, 2007, 431-436 Competitive Strategy for Low Cost Airlines Hongwei Jiang RMIT University, Australia Abstract The aim of this paper is to identify challenge faced to Low-Cost Carriers (LCCs) or Low-Cost Airlines and provide new insights into the development and competitive strategy for LCCs. LCCs are still a relatively new phenomenon in Australia since Virgin Blue and Jetstar came to the market. There are over 30 LCCs

currently an ultra-low cost carrier headquartered in the United States. It has not always been that way, but we will discuss more about that a little later. As the reader, you may be wondering, “What is an ultra-low cost carrier and how is it different than any other carrier?” so I’ll begin by answering that question. After that I will then proceed with more in-depth information about Frontier Airline’s history, operations, finances, labor, and fleet. In contrast to legacy carriers like United Airlines

What opportunities and challenges are associated with that environment? People in the Southeast Asian have low average incomes. The low average incomes should boost the cheap fares demands. In recent years, because of the government decreased the entry barrier of airline industry, more and more carriers entered the airline market. The Southeast Asian has very large populations; these carriers are attracted by the large number of potential travelers. This caused the Southeast Asian budget traveler

of strong and effective leadership, the company successfully gained access to new routes, which ultimately resulted in the increased revenues for the company. The industry is filled with the number of competitors including the low cost carriers as well as the legacy carriers. However, the company is one of oldest company in the industry, which significantly helps in recovering from the major challenges occurred in the overall economy. The company over the years had a strong focus on the customer’s

The Future of the Airline Industry The Airline Industry is in an interesting situation. Simply adding a low cost alternative is not enough in the industry. The Internet has made the power of buyers grow with the transparency of ticket prices. This is not something that will change any time soon. Because of this profitability is predominately reserved for low-cost yet distinctive carriers. No consumer wants to ride what they consider a “lesser” airline. Airlines need a way to distinguish themselves

Introduction Ryanair has long been the pioneer for low-cost commercial air travel. The business model conceived by CEO Michael O’Leary affords the company much in the ways of agility and long-term adaptability. With the economic recovery of the European Union, new threats arise to challenge Ryanair such as an emerging budget air carrier market, fluctuating fuel prices, and controversial customer relations. Examined in this paper will be the internal cost accounting factors that affect the firm as well

most of the competition. While Southwest only uses one type of aircraft, other airlines are increasing capacity and are experiencing higher revenue growth. D. Who are the high and low performers in the industry? Why? The current high performers include Delta, American, and Southwest perhaps because increased labor costs are behind them and they have the most exposure to stronger domestic yields. E. What are the competitive dynamics between and within groups? Pricing is the main competitive dynamic

smaller aircraft on lower volume routes. These airlines generally form alliances with the major carriers and provide service from their hubs to smaller cities in the region. Low cost carriers such as Southwest developed after deregulation in 1978. Southwest pioneered the low cost airline model, which many other airlines have tried to copy. Although there are currently four low cost major U.S. carriers (JetBlue Airways 2006 Annual Report, n.d.), major competitors according to market share include