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.
West Jet Strategy 1. WestJet competes in the air travel market segment with a focus of providing low cost flights to the common traveler, such as friends and relatives. An order qualifier would be the timeliness of the flights. WestJet has achieved the best on-time arrival performance in its market segment which it is able to pass on to customer. As delays will often frustrate travellers, this can make WestJet that traveller’s top choice.
II. ANALYSIS 1. INTERNAL ANALYSIS (a) VRINE Model Resource 1: Embraer’s E190 Valuable- E190 increased growth opportunities for JetBlue as the company could get access to a larger potential market via E190. It was more comfortable than typical regional jet. Cost per available seat of E190 was 34% less than a typical regional jet.
It is consistently ranked as one of the top Fortune 500 brands. Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures, and on-time flights. Many people recognize the reputation Southwest Airlines has in the airline industry and it appeals to many customers and potential fliers. The reputation and recognition of Southwest Airlines is enough to support the ad. The advertisement goes after the common sense of the reader because it is very simplistic.
United Airlines On the surface the Wall Street Journal (WSJ) report sounds very impressive. As if the homework done and the facts and figures provided show they know more about the airline and their business than possibly the airline itself knows. I think the WSJ may have a few good points about the cost of the flights from San Francisco to Washington, D.C. But they can not possibly know everything that goes into how and why and airline provides flights to certain segment of customers. For an airline to simply apply a percentage or portion of the costs of airport fees, baggage handlers, ticket agents and building charges to each flight to cover the costs of sunk or overhead costs would most likely eliminate 60 to 70 percent of the flights they provide.
• Offers reasonably priced travel packages with low frills and excellent customer service. • Low cost approach to flights that has drawn consumers to their services. • Excellent employee relations leads to higher ticket sales as they all work as a team. • Purchased only Boeing airplanes to reduce costs in repairs and get a bulk discount on the purchase. Weaknesses of Southwest Airlines Swot Analysis • Does not offer segmented seating options.
Southwest uses only Boeing 737 model planes for their flights, the usage of 737’s only reduces plane maintenance time and avoids delays. Another strategy that allows Southwest to lower costs is to exclude meals on every flight and allowing passengers to select the seat they want on a first-come-first-served basis which encourages them to show up early for flights. Southwest Airlines is deeply committed to employee satisfaction by fostering a corporate culture of hard work, fun, creativity, independence and family. Southwest selects employees based on attitude and often include frequent flying customers in the employee screening process. Southwest trains and encourages its employees to have fun and be creative in their services to passengers on-board.
AO2- Swot and PEST analysis for Easyjet In this piece of coursework I will be analysing the SWOT and PEST analysis for the easyjet airline. |Strengths |Weaknesses | | | | |EasyJet operate a fast and efficient service with an average |They do not offer free food service and passengers have to pay for | |turnaround time of 30 minutes or below. This enables them to maintain|food and drink onboard the aircraft. | |a reliable and hassle free service to their passengers. | | | |Domestic air travel is an extremely competitive industry with | |EasyJet offers an online promotion alert which is e-mailed to |EasyJet’s main competitors being Jet2, BMI Baby, Ryan Air plus a host| |existing customers and contact on the company’s database.
Both airlines adopted the business model of Southwest Airlines in the U.S. of cost reductions. Southwest flies point-point versus a hub, and utilizes much greater efficiency and turnaround time at the airport thus maximizing aircraft utilization. Both Easyjet and Ryanair operate a younger fleet than Southwest, average age of about 5.5 years compared to 11.7 years for Southwest, ideally resulting in lower operating costs with newer more fuel efficient aircraft (AirlineFleets, 2014). Easyjet’s operations differ from Ryanair in a few key areas. Easyjet flies to mostly primary airports, where Ryanair flies to secondary airports to further cut costs (Easyjet/Ryanair, 2014).
Allegiant Air realized that Hawaii was an untapped market due to recent airline mergers and bankruptcies. Hawaii is the most prominent U.S. leisure destination that Allegiant can capitalize on along with hotel and car rental packages giving them a bigger piece of the pie. Allegiant Air is a low cost carrier with great customer service; its customers were looking for, a competitive alternative to Allegiants rivals. Introduction Allegiant Air was created in 1997 as WestJet Express in Enterprise, Nevada; Allegiant Air acquired its name and operating certificate in 1998, after a trademark dispute with West Jet Air Center of Rapid City, South Dakota. Its first scheduled service began in October, 1999, connecting Las Vegas and Fresno, California with a Douglas DC-9-21 and DC-9-51 aircraft.