Reinventing the airline business: no-frills ailines.

1. The merchandiseplace is changing radically as a matter of major societal forces much(prenominal) as technological advances, globalization and deregulation. Customers increasingly expect higher quality and service and around customization.? How can this statement be justified based on the facts presented in the case study?

2. Does the new model of reinventing the airline business business give a sustainable competitive vantage?

1.Executive Summary

In 1978, only 275 million people took to the skies - a number that more than than than doubled to 600 million in 1997. Over those years, the number of competing airlines soared from 39 to 95 and adjusting for inflation, airline tickets are 37% cheaper today than they were forrader deregulation

The demand for international air transportation is a join function of:

*the business environment

*the f little of tourists

*the demand for airfreight

While The main drivers for the quickening of traffic are:

*the rise of reality GDP

*globalization

*increasing world trade and investment

*higher percent of retired persons

*liberalization

International tourism receipts and arrivals give been growing every year. During the decade 1990-2000 the number of tourists increased from intimately 450 million to 700 million. The increase in leisure travel is alike caused by a rise in the percent of experienced age persons.

The introduction of an open competitive melody market in Europe has broadly been a success.



The arrival of low fare carriers such as EasyJet, Debonair and Go illustrates a market in which competition is taking hold, and benefiting the passengers.

The reduction in labour costs, combined with other methods of cost reduction such as Outsourcing and Franchising have shown to have decreased airline costs. The more radical strategy of No-frills operations has been the most significant post-deregulation using and are now seen as benchmarks for firms to compete with.

The single aviation market within the...

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