Europe's airlines will see more restructuring

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Terrorist Attacks ◽  
Content Type ◽  
Underlying Condition ◽  
The Past ◽  
Low Cost Carrier ◽  
The Eu

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.

WestJet Airlines: hybrid but profitable

2015 ◽  
Vol 31 (8) ◽  
pp. 23-25
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Design Methodology ◽  
Low Cost ◽  
Strategic Positioning ◽  
Hybrid Strategy ◽  
Content Type ◽  
The Past ◽  
Low Cost Carrier ◽  
One Year

Purpose – The article looks at a Canadian airline, WestJet, that began as a low-cost carrier and is now adopting a more hybrid strategy. It analyses the difficulty of such a strategy and makes the comparison with Singapore Airlines (SIA) which has attempted to do the same. Design/methodology/approach – The article is a case study primarily of WestJet, but also of SIA. Findings – The airline industry is notorious for its low profits in the good years and appalling losses in the bad ones. The Canadian airline, WestJet, is one of the few companies that has defied this trend over the past decade. Indeed, it has reported positive net incomes for all but one year since it was created in 1996. In doing so, the Alberta-based firm is bucking not just the trend on profitability but also on strategic positioning.

US airline collusion charges could save Open Skies

2015 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Department Of Transportation ◽  
Predatory Behaviour ◽  
Content Type ◽  
Fleet Size ◽  
Us Economy ◽  
The Us ◽  
Low Cost Carrier ◽  
Lock In

Subject Outlook for US investigations into airlines collusion. Significance Three carriers, United, American Airlines and Delta, account for 80% of US domestic air travel; Southwest, the leading low cost carrier (LCC) takes much of the remainder. The Department of Justice (DoJ) and the Department of Transportation (DoT) have both launched major investigations into the pricing practices of the airlines. Both regulatory moves imply that the rationalisation of the US airline industry has left passengers vulnerable to predatory behaviour, which would worsen if the US market were further closed to foreign competition. Impacts Low oil prices may provide a long-term boost to profits if airlines move to lock in new hedges. However, manufacturers will be hit hard by an economic slowdown in China, home of two of the largest airlines by fleet size. Increasing wages elsewhere in the US economy will add further pressure to airline labour costs.

“Way Smarter”: Valuair in the budget airline industry

2013 ◽  
Vol 3 (4) ◽  
pp. 1-24
Author(s):  
Terence P.C. Fan
Keyword(s):  
Learning Outcomes ◽  
Airline Industry ◽  
Low Cost ◽  
Subject Area ◽  
Executive Education ◽  
Content Type ◽  
Low Cost Carrier ◽  
Fierce Competition ◽  
Risk Investment ◽  
E Mail

Subject area Strategic management and marketing. Study level/applicability Executive education; postgraduate; undergraduate. Case overview By 2004, the low-cost carrier model had just recently been introduced to Southeast Asia. Airlines under this model quickly began taking market share. Singapore's first budget carrier, Valuair, finds itself in fierce competition between two rapidly emerging competitors in the second half of 2004. Valuair needs to expand in order to remain competitive. However, for this to happen the company needs additional access to capital. The CEO, Sim Kay Wee, has begun pitching to investors that his company is a smart low-risk investment. Is Sim right, given Valuair's competitive position and the market environment in which it operates? Expected learning outcomes Students will be able to apply strategic frameworks in order to develop an understanding of Valuair's market position and use this understanding to advice investment decisions. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Airlines are set to face uncertainty after UK Brexit

2017 ◽  
Keyword(s):  
United Kingdom ◽  
Low Cost ◽  
Air Transport ◽  
Disruptive Effect ◽  
Content Type ◽  
The Past ◽  
The United Kingdom ◽  
Low Cost Carrier ◽  
The Uk ◽  
The Impact

Subject The impact of Brexit on airlines. Significance Irish-based low-cost carrier (LCC) Ryanair has repeatedly warned over the past months that Brexit could halt the majority of flights out of the United Kingdom. These comments echo wider concerns about the disruptive effect of Brexit and the United Kingdom's ability to negotiate new air transport agreements. Impacts Larger European airlines such as Air France-KLM and Lufthansa would welcome restrictions on UK-based LCC operations. UK airport expansion may be frustrated; in particular, expansion plans at London Heathrow could come under threat. The UK air transport market faces a period of slower growth with lower revenues and profitability.

scholarly journals The Low Cost Carrier Revolution Continues: Evidence From The US Airline Industry

2011 ◽  
Vol 10 (1) ◽  
pp. 37
Author(s):  
Bogdan Daraban
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Font Size ◽  
The Core ◽  
The Past ◽  
Considerable Cost ◽  
The Us ◽  
Low Cost Carrier ◽  
Competing Models

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; tab-stops: 6.0in; mso-layout-grid-align: none;" class="MsoNormal"><span style="font-family: Times New Roman;"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin;">Over the past twenty years the US airline industry has been marked by the intense competition between the Low-Cost Carriers (LCCs) and the Full-Service Carrier (FSCs). The fundamental differences between the two business models are reflected in considerable cost advantages of the LCCs. In this paper, I use a set of model specific metrics to investigate whether the competitive process has led to convergence in some of the key features of the competing models. I conclude that despite some evidence of convergence along certain dimensions, the LCCs </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">are not ready to abandon the core LCC model.</span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-font-family: Calibri; mso-bidi-font-style: italic; mso-fareast-theme-font: minor-latin;"></span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

“Way Smarter”: Valuair in the budget airline industry

2013 ◽  
Vol 3 (4) ◽  
pp. 1-24
Author(s):  
Terence P.C. Fan
Keyword(s):  
Learning Outcomes ◽  
Airline Industry ◽  
Low Cost ◽  
Subject Area ◽  
Executive Education ◽  
Content Type ◽  
Low Cost Carrier ◽  
Fierce Competition ◽  
Risk Investment ◽  
E Mail

Title – “Way smarter”: Valuair in the budget airline industry. Subject area – Strategic management and marketing. Study level/applicability – Executive education; postgraduate; undergraduate. Case overview – By 2004, the low-cost carrier model had just recently been introduced to Southeast Asia. Airlines under this model quickly began taking market share. Singapore ' s first budget carrier, Valuair, finds itself in fierce competition between two rapidly emerging competitors in the second half of 2004. Valuair needs to expand in order to remain competitive. However, for this to happen the company needs additional access to capital. The CEO, Sim Kay Wee, has begun pitching to investors that his company is a smart low-risk investment. Is Sim right, given Valuair ' s competitive position and the market environment in which it operates? Expected learning outcomes – Students will be able to apply strategic frameworks in order to develop an understanding of Valuair ' s market position and use this understanding to advice investment decisions. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Gap between France’s Macron and Le Pen is narrowing

2021 ◽  
Keyword(s):  
Public Support ◽  
Fiscal Rules ◽  
Terrorist Attacks ◽  
Law And Order ◽  
Content Type ◽  
Investment Agreement ◽  
State Investment ◽  
The Eu

Significance Nevertheless, Le Pen remains the most serious threat to President Emmanuel Macron's hopes for re-election in 2022. She stands above him in some national polls, reflecting her success in broadening RN’s appeal, widespread anti-establishment sentiment and Macron’s unpopularity and mixed record on COVID-19. Impacts To revive the economy, Macron will likely campaign for reform of EU fiscal rules to enable greater levels of state investment. Further terrorist attacks or assaults on police would increase the salience of immigration and law and order ahead of the 2022 election. Ahead of the election, Macron will be reluctant to show public support for the EU-China investment agreement.

Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Romania heads for clash with EU over legal sovereignty

2021 ◽  
Keyword(s):  
Rule Of Law ◽  
Judicial Independence ◽  
Constitutional Court ◽  
Content Type ◽  
The Past ◽  
Court Of Justice ◽  
Recent Developments ◽  
The Government ◽  
The Eu

Significance After accentuated rule-of-law erosion during 2017-19, the new government encouraged hopes that such violations would become a thing of the past. However, last month, the government sacked the ombudsman, while the Constitutional Court declared void a judgement of the EU Court of Justice (CJEU) defending judicial independence. Impacts Recent developments erode hopes that last month’s positive CVM report will lead to Romania’s Schengen zone accession later this year. Failure to replace the ombudsman will not affect the coalition parties electorally, given the politicisation of rule-of-law issues. Subnational courts will be left confused whether to apply the Constitutional Court or the CJEU ruling to legal disciplinary cases.

WASPAS based MULTIMOORA method under IVIF environment for the selection of hub location

2020 ◽  
Vol 33 (5) ◽  
pp. 1233-1256
Author(s):  
Nezir Aydin ◽  
Sukran Seker
Keyword(s):  
Decision Making ◽  
Airline Industry ◽  
Low Cost ◽  
Evaluation Criteria ◽  
Hub Location ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
Decision Making Processes ◽  
Product Assessment ◽  
The City

PurposeLow cost carriers (LCCs) have become one of the most significantly growing parts of the airline servicing market. This new player has redesigned the whole airline industry, which was previously led by the national/international full-service airline companies. Considering such advancements, the hub locations of LCCs became an important issue than ever before. Within this concept, a guiding framework is developed for an LCC company, which is in search of a new hub airport location within Turkey to satisfy the demand and attract new passengers.Design/methodology/approachAn interval-valued intuitionistic fuzzy (IVIF) sets based weighted aggregated sum product assessment (WASPAS) and multi-objective optimization by ratio analysis (MULTIMOORA) methods are developed for decision-making processes.FindingsFive airport locations are evaluated using the developed method. Results showed that in determining hub locations for LCCs, potential number of passengers of the city, airport quality and the number of hotels within the city are obtained as the three most important criteria among 12 evaluation criteria. The best location for the LCC company is determined as Antalya Airport.Research limitations/implicationsTo apply the proposed method to a different set of alternatives, data gathered on comparing location of alternatives from experts should be updated.Originality/valueProposed hybrid framework is presented as the first time in the literature as a decision-making tool. In order to validate framework's applicability, efficiency and effectiveness, a comparison and a sensitivity analysis are conducted at the end of the study.

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