virgin atlantic

2714 Words6 Pages

THE AVIATION INDUSTRY
The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.
The civil aviation industry of world has expanded its wings by letting in private organisations. Privatisation in the domestic and the international circuit can help in foreseeing the future of the aviation industry at a mark up rise, and gaining international recognition. It started eight years back with Open Sky Policy allowing charter flights to operate in domestic market. Today in the year 2000 we saw the code sharing agreement between Air India and Virgin Atlantic Airlines for the DEL- LON sector.
During the last nine months there has been fare wars, value added services, alliances etc. Suddenly there seems some action in the Aviation Industry, where Virgin has acted as a lubricator. There are many other airlines, in bid of competition increasing their capacities or increase their flights for the same route.

Introduction
In the early 80s, when Virgin Atlantic was created, by Richard Branson was a go getting, sweater wearing entrepreneur and head of the successful Virgin Group, probably best known for Virgin Records.
By the early 1980s, Virgin Records was one of the top six record companies in the world. Then, in 1984, Richard got a phone call out of the blue suggesting a jumbo jet passenger service between London and New York. Branson like the idea, much to the horror of his fellow directors who thought him crazy. Undeterred, Richard announced to the world that Virgin Atlantic Airways would begin operating……within three months! An aircraft was found, staff were hired, licences granted and, thanks in no small part to Richard's infectious enthusiasm, on 22 June 1984 an aircraft packed with friends and the media set off for Newark, New York - and a phenomenon was born!
Since then, Virgin Atlantic has become the second largest long-haul international airline operating services out of London's Heathrow and Gatwick Airports to 21 destinations all over the world - ...

... middle of paper ...

... quality and value for money has gained the loyalty of many passengers. Its services, which are exclusive to this airline, enhance the experience of people on board. What more could you ask from an airline which has built an excellent. All this and more has resulted in a tough competition with its competitors, but Virgin Atlantic faces competition as a motivating factor, which would help them to grow in the long term.

Virgin Atlantic has opened up a destination for Richard Branson to offer him a platform to invest in other activities. As it is known that Virgin Company has diversified itself into other products in other parts of world.

BIBLIOGRAPHY
Lovelock, C., “Services Marketing”, Prentice Hall, 1991.
Kotler.P, “Marketing Management”, Prentice Hall of India, 1999
Payne, A., “The Essence of Services Marketing”, Prentice Hall of India, 1996.
Luck, Rubin, “ Marketing Research”, Prentice Hall India, New Delhi, 1996.
Bernhardt, Kinnear, “Cases in Marketing Management”, Butterworth Heinemann, 1997.
WEBSITES
www.virginatlantic.com www.airindia.com www.tourismindia.com
MAGAZINES
Business Standard Aviation.
Business World.
Todays Traveler- The Business and Leisure

Show More
Related

  • Spirit Airlines Value Chain

    89 Words  | 1 Pages

    The following value chain, which focuses on Spirit Airlines, is representative of most of the firms in the Ultra Low-Cost Airline industry. Spirit is the industry leader in many areas such as operational efficiencies/cost structure, aircraft fleet management, brand/network and growth. The firm, however, trails industry foes in areas such as customer service and operational reliability and recoverability. While most in this segment pursue the cost-leader competitive strategy, Spirit has demonstrated the most effective model to date – whether the model is the most sustainable remains to be seen.

    Read More

  • Delta Airlines Executive Summary

    587 Words  | 2 Pages

    With this consistency in delivery of services, it is clear that the company is out to outdo its competitors and turn out to be the greatest airline in the world. Delta Airlines was founded by C.E. Woolman, who was an agriculture extension agent. He was not as aggressive, using the military style that was a common trait among other airline founders. Since its establishment in Monroe, Louisiana, the once tiny airline has stretched to greater heights serving 6 continents.

    Read More

  • JetBlue

    1701 Words  | 4 Pages

    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.

    Read More

  • Qantas International: Analysis of the External Environment

    2015 Words  | 5 Pages

    Despite the growth in the market, Qantas International’s market share has been falling over the past 10years, from 34% in FY02 to 16% in FY13. The entry of Virgin Australia in 2000 in part explains this, however Virgin’s growth also coincided with the demise of Ansett in 2001 “… Virgin Blue will initially increase capacity on existing routes while evaluating what c...

    Read More

  • JetBlue Airways

    1679 Words  | 4 Pages

    JetBlue Airways entered the market in 2000 from a position of financial strength, leadership capability and several rare advantage points uncommon to others in the industry: 1) David Neeleman, the founder, had several years of industry experience as a result of having successfully launched and sold an airline (Morris Air), bringing both explicit and tacit knowledge into the his new venture; 2) Neeleman was afforded the opportunity to work directly with his idol, Herb Kelleher, at Southwest Airlines (the king of the low-cost leaders) after Southwest purchased Morris Air from Neeleman; and 3) Substantial financial support from venture capitalists who had funded Neeleman's previous ventures and were more than willing to support and capitalize on his idea for a new low-cost passenger airline.

    Read More

  • Jetstar Case Analysis

    1885 Words  | 4 Pages

    As airline industry is a competitive marketplace, the airline companies use new technologies to improve their efficiency and decrease the overhead costs, including ‘advanced aircraft engine technology, IT solutions, and mobile technology’ (Cederholm 2014). The technology changes including technology improvement, new innovation and disruptive technology. The disruptive technology need to meet the characteristics of ‘simplicity, convenience, accessibility and affordability’ (Christensen 1995). The technology changes would bring both opportunities and threats to airline companies. Since Labour cost and fuel costs occupy 50% of most airlines operating cost (Groot 2014). Therefore, if new technologies could be disruptive in the two aspects, there will be important changes to current airline

    Read More

  • History of United Airlines

    610 Words  | 2 Pages

    As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.

    Read More

  • Five Forces Analysis: Airbus And Boeing

    731 Words  | 2 Pages

    The aviation industry is very difficult to enter, and the threat of new entrants is low. The first and major threat to entry is the initial capital requirements. The development period is over 5 years, with very large initial investment costs, parts costs, and wages are necessary even before the company earn revenues and sell aircrafts. The economies of scale, when the airline company has a substantial order, there are reduction in cost because of discounts on large orders. The new entrant suffers a significant cost, which is a disadvantage compared to established companies. Another risk for the new entrant, the extra supply of products for the substantial order, will decrease prices. The result, the new entrant will

    Read More

  • Virgin Group Essay

    1184 Words  | 3 Pages

    Virgin is made up of over 200 companies and employs approximately 50,000 people worldwide. It was originally set up as a mail-order record business by Sir Richard Branson. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow in business sectors ranging from mobile communications, to transportation, travel, financial services, leisure, music, holidays, publishing and retailing. In 2006 Virgin’s revenues from around the world exceeded £10 billion.

    Read More

  • Business Analysis: Lufthansa Airline

    2483 Words  | 5 Pages

    Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...

    Read More

  • Porter 's Five Forces Of New Entrants

    1132 Words  | 3 Pages

    The airline industry is a costly business to partake in especially due to the cost of fuel and technology needed to operate the airplane. With EasyJet internationalizing into Africa, it had the notion of facing new competitors, however, with the finances (see appendix) it possesses and the famous identity of its brand, made the threat of being a new entry within the Nigerian market low. However, a big threat would be if local Nigerian airlines were to reduce its prices then EasyJet might be at risk because the local airlines have the necessary equipment and knowledge to operate in its region.

    Read More

  • The Airline Industry: SWOT

    882 Words  | 2 Pages

    The perennial crisis in the airline industry: Deregulation and innovation. Order No. 3351230, Claremont Graduate University). ProQuest Dissertations and Theses,, 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364.

    Read More

  • Virgin Atlantic Commercial Analysis

    2065 Words  | 5 Pages

    Klevis Pavaci English 102a Dr. John Rodrigue 16 April 2015 Virgin Atlantic: Flying in the Face of the Ordinary Three young children from different places of the world, are born with superpowers that include telepathy, outstanding reflexes and a genius mind. As these children grow up they turn into superheroes and they choose to become part of Virgin Atlantic rather than other usual ordinary airline companies. During the commercial, the deep voice of a narrator mixed with classical music and the high quality effects gives a fascinating and impressive image of the brand. As people get more sensitive toward price changes, the majority of airline companies tend to lower the flying cost. However, this approach does not seem to be followed by Virgina

    Read More

  • E-Business Architecture

    1853 Words  | 4 Pages

    Virgin Atlantic is UK's second largest major airline; it had its first take-off in 1984 and nowadays has routes leading to the world's major cities, having carried more than 38 million people to this date.

    Read More

  • Singapore Airlines Recommendations to Management

    778 Words  | 2 Pages

    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.

    Read More

More about virgin atlantic

Open Document