Question 2 Air Asia / West jet/ South west airline- Low cost carrier airline- relate to Fiji Airways

Factors that generate low cost Airline ? All these candain airline is a low cost airline carrier: Air Asia started with 2 air craft- now got a large number of aircraft. Air pacific co branding ( Fiji Airways)- got series of companies and is growing rapidly and is a big market. Worlds largest low cost carrier Major domestic airline that provides short haul, high frequency, point to point, low fare service. Provide highest quality of customer services, give profit sharing plans to employees. Fuel hedging operated only one model of aircraft. OUR NEW A330 Fiji Airways- 2013, Air Pacific officially re-launch as Fiji Airways to coincide with a new, world-class experience which will bring the best of this warm nation to the skies. First plane design for Fijis international airline. highly fuel efficient with low carbon Rolls Royce engines. Business class features tilted flat beds and the economy cabin boasts shared power sockets, mood lighting and a large double disabled toilet that also contains a change table, giving parents with babies welcome room.

Samoa- air Fiji is using their aircraft now Apia- take of time to Sydney Buying a new aircraft will save millions and millions of dollars. Fuel is a big cost of the airline- Huge utilization- every minute is safe at the airport- 20 mins turnaround is the cost saving High utilization of the aircraft

 Singly type of aircraft Speed up how fast we can play Light weight crew/ charming/ beautiful/ slim/ local killers Fly into secondary airport also for all less than six hours flight airlines dont provide meals and drinks, customer will need to buy it They use airbus Limited number of staffing- Customer pay online, book online, Training- invest in the people

Strengths Single type of fleet minimizes maintenance and the pilot training cost Efficient use of the technology Brand name Strategy formulation and implementation Highly trained staff Growth and the revenue High capacity usage Online booking and WIFI connectivity in the aircraft

Weakness o Lack of maintenance and repair resources o Government intervention and regulation on airport deals and passenger compensation. o Non central location of the secondary airports o Heavy reliance on out sourcing o New entrants provide the price sensitive services o No segmented seating

o Dependent on a singly producer Opportunities Growth of the older generation New technology opens the door of the new products and services Increase internet advertising Increase in the oil price Partner with low cost airline eg Asia with virgin airline Diversification

Threats Decline of Leisure travel due to economy and terrorism Competing on line ticket reservation system Gas and oil price fluctuations Environmental initiatives- paper less tickets Fuel saving and reduction in green house ( gh6) emissions through use of efficient planes with winglets. Recycling and waste reductions aim to increase the quantity of materials recycled on board by 10 percent. Airlines cannot control airport taxes security and landing charges.

Porters 5 forces modelNew entrant- new LCC for all the routes eg firefly Customer bargaining power- Passengers finding other alternatives to travel Substitutes- Ferry , Bus, Train Cars Rivalry other airlines

Supplier bargaining power- Boeing aircraft to air bus.

How to fly airline- fly into the secondary airport Quantas vs Jestar Cabin crew getting extra hours Good pay and other benefits Lot of salaries and fly out Cabin crew 24, 000 air per day Low cost models short domestic routes

Africa-There is a new Air craft- deregulation open policy To have efficient policy- 1 airline policy

Recommendation Builds relations hip with the customers Focus on the retention of the customers and as well as acquiring new customers

Branding is very important Build loyalty with the customers To invest in the maintenance facility Use sustainable aviation fuel to reduce emissions hence invest in better aircraft with efficiency Benchmark staff and company performance