Reference no: EM133216853 , Length: Words Count:1000

Assignment:

QUESTION: International airlines operate in a very competitive and demanding environment. There are some airlines that operate as cost leaders. In the module we looked at how no frills cost leader airlines like Ryanair have managed to continually increase revenues and profits over the last 15 years. Obviously during the Covid crisis all airlines including Ryanair have suffered badly as there have been restrictions on passengers flying. Discuss how airlines like Ryanair have managed to follow the no frills cost leadership model and been successful. Do you think this model will be successful following the Covid-19 crisis? You may refer to appropriate academic models to help you answer the question.

(1000 words limit)

Brief Introduction on Cost Leadership Model (No-Frill Airlines) cite references on cost-leadership and its business strategy.

Success of No-Frill - Cost Leadership Airlines during Covid-19 Pandemic: some example: single type of aircraft fleet, aircrafts with fuel efficient technology that can offset higher fuel cost. Create own secondary airport away from main airports or operating during off-peak hours in main airports. Cabin crews are multi-task at the checking in of passengers. Seats to be allocated on a first come-first served basis. Generate revenue through paid standardized F&B services. Avoid using Areo-bridge instead walking or buses to terminal. Maximize the utilization of the aircrafts in scheduling flights and turnaround at airports between 30-45 minutes to avoid higher parking costs. No transfer facilities, only point-to-point destinations. Avoid any form of luxuries on flights. Passengers to provide e-tickets either printed or digital reduce personal con in printing the tickets. Distribution channels are many destinations.

(including references)

1. Porter's Generic Strategy: Explain what is this model. How value Chain can help to reduce cost. Bowman's strategic clock were used to maintain the sustainability of the airline. (add chart/table and explaining).

2. Review the Budget Airline' Business models (Example Ryanair, Spring Airline & Southwest Airline)

3. Finally explain how budget airlines could overcome the post-covid? a value-add from inputs, process and outputs to sustain in the budget airline competition. Look at other opportunities to enhance sustainability.