![]() ![]() The Middle East buzzing with global economic activity couldn’t have been left behind. The strategy attracted many more around the globe for sheer penetration in the crowded market. South-West airlines in the US can be called the pioneer of this model which later became popular in the continental Europe with Ryne Air, Easy Jet & Go, refining the model to suit their bottom lines. Preliminary literature review and scrutiny of the management of low cost airline operations reveal certain facts that indicate the ‘no-frills business model’ of such airlines. This study focuses on this aspect too to get the relevant insight. Price, undoubtedly is a major ingredient in the decision making process of a traveller, especially amongst the expatriates in the region. All this needed a closer look into the functioning and subsequent future of low-cost-airlines in a region where expatriate work force outnumbers locals. Then came the results of the first year of operation and Air Arabia broke even. Being essentially regional in operations the prospects looked highly promising. The idea to launch a low-cost airline in the region was prompted by the success stories of such airlines in North America and Europe. The declaration also announced arrival of the first such airline in the entire Middle-East and North-Africa. For the first time in late 2003 ‘Air Arabia’ a declared low-cost-airline started its operations from Sharjah U.A.E. The statement becomes the starting point of our discussion in the present study. Whether ‘low-cost’ is a viable strategy in the present scenario of intense competition? What is strategy after all? In the words of Stephen Shaw, “Successful airlines appreciate that adding product frills rarely produces long-term gains in market shares, because frills can easily be matched by competitors”(Shaw 1999). It has been a bag of mixed results for the so called ‘low-cost-no-frills-airlines’ in the last few decades. The latest addition to the various such strategies is “low-cost-carriers”. It was possible to conclude that the power of the airlines operating on it is the competitive force that has greater influence on this type of airport which follows a generic competitive strategy of focus on the market segment of low cost airlines.Ībstract: The issue of Airline Strategy has always been fascinating. In particular, it was developed a quantitative methodology to classify the intensity of the different competitive forces that affect this airport. These methodologies were applied to Orio al Serio airport in Italy, an airport whose operations are largely dominated by low cost airlines. Among these methodologies, it was choose to develop of the SWOT analysis and the Porter five competitive forces model to characterize what are the best airport’s strategic options. This document’s objective is to analyze various methodologies in order to choose the most effective one for evaluating the strategic options followed by the airport managements that pretend to attract low cost airlines. ![]() For that reason it is essential to find analysis methodologies suitable to identify the best strategic options to deal with different types of competition. However, the great dynamism of this industry has exposed the airports to several competitive forces. These companies had a huge economic and social impact and present specific operational requirements that forced the airports whose strategy is to lure these companies, to adapt to such characteristics. Consequently, low cost airlines emerged, which revolutionized the entire market. The airline deregulation act has stimulated the competition and allowed the growth of the air transportation. ![]() Flying High in a Competitive Industry gives you the inside secrets for how to outperform the competition at every turn and find vast profits on a consistent basis-even in industries where no one is making money." The company has developed a careful balance of Cost-effective excellence in service, Keen insight into economic trends, Unrivaled ability to recognize corporate misalignment and Extraordinary human resource practices. How has SIA outperformed the competition for decades, in a notoriously difficult industry? More importantly, how can you put your own company on the same trajectory? Flying High in a Competitive Industry provides the tools you need to design a strategy that will launch your organization to the forefront of its industry by revealing the secret to SIA’s remarkable success. Year after year, the company manages to sustain its innovative initiatives and cutting-edge strategies in the face of increasing cost pressures, industry crises, and the constant push towards commoditization. "Singapore Airlines (SIA) is considered by most experts the best-run airline in the world.
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