How have low cost airlines affected the development of the aviation industry?

Undergraduate
Research Paper
Marketing
Pages 6 (1506 words)
Download 0
This paper will analyze the effects that the low-cost airlines have on the development of the aviation industry. The current climate in the aviation industry is nothing short of difficult. However, one sector in this industry seems to be and has been performing exceptionally well i.e. the Low-Cost Carriers…

Introduction

In the American aviation industry, Southwest is the fastest growing airline having been established back in 1971 with just 3 aircrafts. Today is about 540 aircrafts which form the most modern flee in the world. This airline has an unbeaten profit record in the American industry of 17 consecutive years when considering all the quarters of every financial year till 2008 first quarterly report. Southwest also boasts of a customer base of more than 85 million per year which is more than that of Delta, American and United airlines. It is notably in the high-end competition due to its low fares, quality of customer service and on-time arrivals. Its major and direct competitors are JetBlue, Air Trans and others like Delta. Due to its low-cost model of operations the airline spends 50 to 70 percent less than the major carriers in the same market. This hugely explains the low fares, high quality of service, the huge fleet of modern aircrafts and long profitability streak. In essence, the Southwest Effect is described using three principles. These principles translate to the major impacts that low-cost airlines have in the industry. The first is that with the presence of Southwest Airlines in a market, passenger numbers will increase. This is dictated by the fact that the airline brings in competition especially in ticket prices thereby attracting more customers. The second is that competing airports to those that Southwest operates in witness a decrease in passenger traffic ...
Download paper
Not exactly what you need?

Related papers

Aviation strategy- course assignment
Making use of its point to point flights, the airlines gives regular direct flights for the short distances, for example from Los Angeles to Las Vegas, etc. In 2008, Southwest served 438 nonstop city pairs, in 64 cities in 32 states and carried over 101.9 million passengers, the most of any domestic carrier. As the low-fare leader, Southwest's average ticket price was $119.16 in 2008, up from…
18 pages (4518 words)
The Influence of Global Economic and Political Environment on Airline Industry in China.
"Globalisation" was coined by Levitt (1983) who describes it as the shrinking of the world as brought about by the expansion of the reach of global media and the reduced cost of communication, resulting in the convergence in the tastes of consumers worldwide and the large-scale creation of global markets for standardised products. According to Giddens (2001), it is "the growing interdependence…
8 pages (2008 words)
Commercial Aviation Safety
After the two wars, the availability of decommissioned military aircraft as well as the increase in number of decommissioned military pilots paved the way for the modern aviation industry. At the same time, aircraft manufacturers such as Cessna, Piper and Beechcraft made passenger aircraft made for specific roles. These aircraft manufacturers eventually became the world's leaders in passenger…
9 pages (2259 words)
Shortage of skill staff in aviation industory in UAE.
It has opened new ways for many new airline companies to step up in the field. As there are much new aviation industries presently working in the Gulf region, it has also led to the shortage of skilled qualified staff in the industry. Inflation has not only affected the aviation sector, but also the housing, schooling and living sector. A change of almost 40-1000% was recorded in the housing and…
20 pages (5020 words)
ComputerBased Applications in Aviation Education
In the paper that follows, an explanation of the different procedures of technology and how they are used in modern aviation education shall be presented and well tackled. With ample research and understanding, it could be noted that the discussion of this matter could create a clearer picture as to how the entire process of technological adjustment has actually found better ways of increasing the…
12 pages (3012 words)
Using secondary research, analyse and evaluate the strategic management in an organisation of your choice from the events or tourism industry:
British Airways operates from the two major airports of the United Kingdom, Heathrow and Gatwick. This airline services is also well known for the excellent service that it provides and the high quality of operations that it consistently maintains over the years. Over 35 million passengers travel with British Airways in a year (Evans et al, 2003). With a variety of options like business, first,…
14 pages (3514 words)