Introduction Tiger Airways is an airline company established in Singapore in the year 2004. It is a budget carrier which means the services provided by this airline is affordable and satisfying. This company incorporates three airlines, which are Tiger Airways Singapore, Tiger Airways Australia and Tiger Airways Mandala. Tiger Airways travels to over 50 different places at 14 different countries in the Asia Pacific. Furthermore, Tiger Airways owns a fleet of aircrafts with the age of less than three years. Tiger Airways Singapore has a fleet consisting of 27 aircrafts. Meanwhile, Tiger Airways Australia has 13 aircrafts whereas Tiger Airways Mandala has the least which was nine aircrafts (Tigerair, n.d.). Tiger Airways has an impressive record by winning several awards. The earliest award won by Tiger Airways was Low Cost Airline of the Year Award at CAPA’s Aviation Awards for Excellence in the year 2010. In 2012, two awards were won by Tiger Airways which was Top Airline by Growth in Passenger Carriage (Singapore) at the Changi Airline Awards 2012 and Best in-flight meals in the low cost airline category at the Asia Pacific Airline Food Awards of 2012. The following year, Tiger Airways won a massive amount of four awards in total, namely Promising New Foreign Airline of the Year 2012 by KL International Airport, Top Airline by Growth in Cargo Carriage at the Changi Airline Awards, Top 3 Airlines by Passenger Carriage (Singapore) at the Changi Airline Awards and lastly got recognised as Singapore’s largest no-frills airline by Centre for Aviation (Tiger, n.d). However, they winnings were not helping in profit wise. Tiger Airways faced losses for 3 consecutive years as reported by Tan in 2014. Centre of Aviation (CAPA) in 2... ... middle of paper ... ... Conclusion This issue has great impact on Tiger Airways, many steps or tactics been taken by them to improve their reputation as well as gaining more profits and reducing losses. The consumer behaviour towards services provided by Tiger Airways was affected by some problems that seem to be risking the lives of their passengers. This explains the loss of immense profit that led them into losses. In gaining back the confidence of their customers, they made many promotions by offering much lower prices and deals which includes hotels as well. For example, their customers could rent certain hotels at cheaper price and save up their travelling expenses. In short, Tiger Airways is struggling to get out of the pothole after suffering three consecutive losses so that they do not have to end their business.
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
First of all, the power of suppliers under the Qantas Airways Limited is stable, which their supplier is a world’s fuel price for their airlines, self-supply fuel and large in their economy of scale. Then for power of customers, is also stable because the Qantas Airways Limited has already built a reputation for excellence in their safety, operational reliability, engineering and maintenance, and customer service. With that strength can opportunities for them to increase the power of customer, automatically it can be a comfort and the first choice for the customers to the services that given, especially when Qantas Airways Limited can put or offer a better price than other competitors that similar like
Twenty-two consecutive years of profitable operations which is unmatched in the US airline industry.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
The purpose of this report is to show how Qantas was affected by global financial crisis. Qantas is the second oldest airlines in the world. It is one of the tough competitors for other airlines. But Qantas was affected badly during the crisis, the tickets prices went up because the fuel prices went up. I have suggested few recommendations for Qantas to bounce back , what can be done without laying of the employees and have also spoke about cost cutting.
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
Flight fee is one of the biggest nightmares of the passenger. In this regard, such an initiative is a win-win situation for the Asiana airlines. The establishment of extensive cabin retrofits is also a great improvement to the customer service delivery. The airline also boosts customer experience in a bid to achieve the airline’s sustainability through the provision of lie-flat seats. The seats boost comfort for the passengers aboard; hence, reduction of exhaustion. According to Asian Development Bank (2009), the airline provides the passengers with a sizeable monitor, especially for the business class passengers. The practical productivity of team relies on upon its hypothetical planning, information of an aeronautical building, and tenets of its operation, including exceptional circumstances, and propensities for utilization of this learning, furthermore on order and determination of pilot-in-charge of aircraft and group individuals. The administration productivity air movement, the associations of flight action and a wide range of upkeep of aircraft in the greatest degree is controlled by the proficiency of the action association in the modern undertakings, cognizance of initiators, and the moral obligation of leaders of all positions for action concerning security control of
Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which effect on the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled. These factors called internal factors but there are some factors which are very hard to tackle. They are out of control of the company but the alternative actions can be taken to avoid the consequences of the impacts. To analyze the external factors which are affecting the Air India airline, the pestle analysis can be used.
AirAsia Berhad is a Malaysian low-cost airline based in Kuala Lumpur, Malaysia. It has been named as the world's best low-cost airline, and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 100 destinations across 22 countries. AirAsia has risen exponentially since its purchase in 2001, as a result of its confluence of opportunity and its application of the Low-Cost Carrier business model (Poon & Waring, 2010).
Several weaknesses in airline operations were identified as the causes of the RM1.3 billion loss. These included esclating fuel prices, increased maintenance and repair costs, staff costs, low yield per available seat kilometer ("ASK") via poor yield management and an inefficient route network.
Jet Airways was found in 1st April 1992 by Mr. Naresh Goyal and they started their operation after one year may 5th 1993, Jet began international operations from Chennai to Colombo in March 2004. The company was listed on the Bombay Stock Exchange
Airline industry is affected by no. of factors such as fuel price fluctuations, high fixed costs, strong influence of external environment and excessive use of marginal costing by carriers. Recessions in the industry tend to last longer, while recovery periods are generally shorter. Over the past nine years, it is observed that industry has made losses for five years and during the profitable years margins were on a lower end. The airlines industry is acutely sensitive to external events such as wars, economic instability, government policies and environmental regulations.
When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.
The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.