Many financial analysts still states that the cost per available seat mile is still above the threshold standard operating cost of a Low Cost Carrier true, but despite the price structure of its own is in conformity with the concept of LCC so it might be more appropriately called the Low Far Carrier ( LFC) because it offers a low price but not yet fully support the principles of the LCC where the cost structure and productivity of the airline is still relatively
As delays will often frustrate travellers, this can make WestJet that traveller’s top choice. An order winner is the low price fares that WestJet is able to provide to customers in order to entice them to fly with them. Bargain-basement airfares may appeal to many travellers and the affordability of fares may be what drives that traveller’s decision on whether to drive, or purchase from another airline. 2. WestJet’s competitive priority relates to cost, quality and delivery.
Cost per available seat of E190 was 34% less than a typical regional jet. Breakeven point was much lower on the E190 than the A320. Rare- JetBlue was the launch customer for the E190 and Embraer had limited capacity to produce it in one year, so not many airlines had E190 until now. Inimitable- JetBlue played significant role in the design of the E190, allowing them to customize the plane to their specifications Not Substitutable- Elasticity of substitutions of the E190 varies on the consumer preferences. Exploitable- JetBlue could design the interior of the aircraft to improve passenger comfort and use E190 as an useful tool to expand market and attract new customers.
There are several options available for customers to choose in this industry because the standard product and service are in this industry, so customers are more care about the price. And also the Internet makes customers research cheaper flight much easier than before and switching cost is low. The threat from substitute is high. Numerous options for customers can instead airlines, such as trains, buses, boats, and personal vehicles. Customers usually desire a cheaper way to travel if there are many options for them.
The first and the biggest challenge was adding unique features and services while still keeping costs and ticket prices low. Adding features such as leather seats, movies and TV, and free in-flight Wi-Fi, as well as more superior on-board service would increase production cost, training cost, and maintenance cost, thus caused lowering costs but creating higher values and improving quality to be difficult. To address this challenge, JetBlue would need to design new features with quality in mind in order to lower maintenance cost and after-sale service cost. Second challenge was the transition from the already established brand image of a low-fare airline company to a company with higher perceived value. Because customers had been used to the original business model, changing their perception of the brand was not an easy task.
The use of plea bargain has many aspects to it most of them are good but also some of them are bad. Some of the positive outcomes of a plea bargain are less money spent, less time in courts, a considerably low sentence for the defendant and a much faster and productive criminal system. In trials, attorneys make a lot of money and that is good for them but not for their clients. A person can save a lot of money if they reach a plea bargain because lawyer fees range from the hundreds to thousands of dollars and going to trial can get very expensive. The advantage for the defense is that less work is required on their part and they typically receive the same amount of money in return.
The core concepts of Jet blue lay mainly customer value and product leadership. Jet blue operates under a concept of offering a lower, more affordable option to consumers while not letting the value affect the levels of service. The accessibility of the airline creates an aura of extended service by providing contact to limited locations that traditionally can only be reached with the sacrifice of high fares. In order to make logical profitable, business model Jet blue operates an efficient load factor by maximizing the percentage of aircraft seating capacity. (Jet Blue, 2005).
What is it that you like or dislike about the strategy? What I like about their low cost/ low fares strategy is that even though it’s a ‘cheap’ airline, they still aim for the highest levels of customer satisfaction possible, and by doing this they give their customers more value for less money instead of less value for less money. I also like Southwest’s strategy of letting employees come first and customers second and in that way ensuring that employees give the best possible service to their customers. Does Southwest have a winning strategy? I
In fact, some people argue that these people help in driving important parts of the economy because they willingly accept and undertake the tedious and physical types of manual chores that most Americans would much rather avoid. Such labor boasting long strenuous working hours and cheap wages are positively not on the top of any American’s criteria when searching for employment. Some also report that hose illegal’s that are paying their taxes pay greater amounts than the ordinary American does, and this increase in amount of revenue is beneficial to the nation’s budget use to help improve on such provisions of services like, quality healthcare and Medicare, even though the number of those paying taxes is significantly less than the undocumented evaders. For example, a 2006 report by the Texas Office of the Comptroller found that the state's estimated 1.4 million undocumented immigrants contributed more in state revenues than they cost in state services during fiscal year 2005. The net gain for the state was $424.7 million, according to the report.
There first goal is making sure the customers are completely satisfied. They made flying more of a joy than a chore. There was no first class, no assigned seating, and this cut down on time. Southwest also offered low fares, almost 60% lower for coach fares than other airlines. Employees were also an integral part of the airlines success.