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Feasibility Analysis Of A Low Cost Strategy For Long Distance Flights


Author : Joren Steinheuer
language : en
Publisher:
Release Date : 2015-12-01


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Bachelor Thesis from the year 2015 in the subject Business economics - Investment and Finance, grade: 2,0, University of applied sciences, Dusseldorf, language: English, abstract: This thesis focuses on the economic feasibility of a low cost strategy for long distance flights, based on the example of Eurowings in the product portfolio of the full service carrier Lufthansa. On the ITB 2015, Europe's largest tourist trade fair, an executive board member of Lufthansa, Karl Garnand, announced the first routes for the coming low cost long distance flight product of the company. Lufthansa is going to start this project with its brand Eurowings. The first flights to three destinations will be operated as from November 2015, tickets are already bookable. The low cost carrier business prospers for a long time. Its market share in Germany, measured by the number of passengers, grew from 4,8% in 2002 to 25% in 2014. However, this success refers exclusively to short and middle distance flights. Eurowings is not the first try of an airline to establish a low cost product for long haul flights, but there is no example with economic success."

Low Cost Concept For Long Haul Destinations A Feasibility Analysis Of Eurowings Strategies


Author : Maxim Lachmann
language : en
Publisher: GRIN Verlag
Release Date : 2017-09-18


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Master's Thesis from the year 2016 in the subject Business economics - Operations Research, grade: 1,3, University of Applied Sciences Essen, language: English, abstract: This paper analyses Eurowings' marketing strategy by applying different macro- and microeconomic tools in order to consider competition, political forces, environment influences and economic impacts. The goal is to examine in particular Eurowings' low cost long haul business model and which strategy was selected by the Lufthansa Group and how this strategy works. Additionally, the objective is to analyse Eurowings European competitors, with the major goal first to understand Eurowings' market position in Europe. Subsequently, the results of this strategic assessment show Eurowings' strengths, weaknesses, opportunities and threats. The aviation industry in the 21st century has been changing continously. The low-cost carrier business model has revolutionised the commercial transport industry. Commercial Aviation industry and its development is positively influenced by external factors such as politival, social, economic and technological developments. Airlines are therefore forced to adjust their business models to the external factors and new market requirements, as well as to introduce new business concepts with the objective to gain more market shares and competitive advantages. The European market is divided into different low-cost carriers, each fighting for customers, image, and profit. Eurowings is a new player in this low-cost business, in particular in the market for long-haul destinations, which could become an opportunity to be the first successful low-cost German airline and the third biggest low-cost carrier in Europe.

The Entry Of Low Cost Airlines Into The Market For Long Haul Flights


Author : Jakob Stemmler
language : en
Publisher: GRIN Verlag
Release Date : 2015-06-05


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Bachelor Thesis from the year 2013 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,3, University of Mannheim (Fakultät für Rechtswissenschaft und Volkswirtschaftslehre, Abteilung Volkswirtschaftslehre), language: English, abstract: The entry of low-cost carriers (LCCs) in the early 1990ies revolutionized the European airline industry. Before the LCCs entered the European short-haul market, incumbent full service carriers (FSCs) were able to operate relatively unhindered. Supported by many deregulations, LCCs set their focus on a cost base as low as possible, so they were able to offer fares tremendously lower than incumbent players. Even though they took some market share from the FSCs, the main success was based on the ability to reach new customer segments. Passengers, previously travelling by car or long-distance busses, took advantage of newly affordable airline fares and were willing to incur limited comfort. Now, around 20 years after the first entry of European LCCs, the short-haul market is not expected to continue growing significantly. Hence, if the LCCs want to continue their expansion, they need a ‘new market’, and it seems just like a question of time until they add long-haul routes to their route network. Nevertheless, the long- and short-haul market are comparable just to a limited amount. As we will see in the following analyses and discussions, several specific characteristics require fundamental changes in the current LCC business model, which is optimized for short-haul operations. The focus point of this thesis is the development of an auspicious entry mode, based on theoretical economic frameworks. In comparison to the short-haul market, competitive interactions between incumbent FSCs and entering LCCs are expected to be much more intense on long-haul routes. This is based on the fact that LCCs will not be able to sustain their high cost advantages also on long-haul routes. For long-haul flights it is also not possible to reduce provided comfort and additional services in such a way the LCCs currently do on their short-haul operations. Hence, on long-haul routes, entering LCCs and incumbent FSCs will be active much more in the same market than they currently do, which implies a much higher degree of competition. This provides several points of contact for game theoretical considerations, as we will see in the following chapters.

International Aerospace Abstracts


Author :
language : en
Publisher:
Release Date : 1995


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The Airline Industry


Author : Alessandro Cento
language : en
Publisher: Springer Science & Business Media
Release Date : 2008-10-15


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The debate on the future of the aviation sector and the viability of its traditional business practices is the core of this book. The liberalization of the EU market in the 1990s has radically modi?ed the competitive environment and the nature of airline competition. Furthermore, the new millennium began with terrorist attacks, epidemics, trade globalization, and the rise of oil prices, all of which combined to push the industry into a “perfect storm”. Airline industry pro?tability has been an elusive goal for several decades and the recent events has only accentuated existing weaknesses. The main concern of ind- try observers is whether the airline business model, successful during the 1980s and 1990s, is now sustainable in a market crowded by low-cost carriers. The airlines that will respond rapidly and determinedly to increase pressure to restructure, conso- date and segment the industry will achieve competitive advantages. In this context, the present study aims to model the new conduct of the ‘legacy’ carriers in a new liberalized European market in terms of network and pricing competition with l- cost carriers and competitive reaction to the global economic crises.

Ryanair And Its Low Cost Flights In Europe


Author : Sascha Mayer
language : en
Publisher: GRIN Verlag
Release Date : 2008-06


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Seminar paper from the year 2007 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, University of the Sunshine Coast Queensland (Business Faculty), course: Marketing Management, 19 entries in the bibliography, language: English, abstract: The purpose of this report is to provide a Marketing Plan for Ryanair, which is developed to strengthen the company's position in the market. It is precisely tailored to the company's actual organizational situation and its market environment. The report deals with analyses of Ryanair Holdings plc and its core business - low cost flights - with regards to get a status of its performance and the actual market situation in order to develop a suitable and successful marketing strategy. Ryanair offers low cost passenger flights within Europe. The airline serves short haul, point-to-point routes between Ireland, the UK and Continental Europe. Our idea is it to keep the product as simple as possible. Passengers travel ticketless without any frills in one class without any seat - it is simple air transportation from A to B. The external environment in Europe favors Ryanair and the entire low-cost airline market with an air traffic growth of up to 20%. Regarding the competitive environment Ryanair - with a clear strategy and structure - gains in importance and already became the market leader in the intra-European low-cost airline market - closed-packed with Easyjet and followed by Air Berlin. With its 35 Mio passengers in 2006 and an excellent profitability on a high level of 20% is growing healthy and shows strong financial reserves of more than 2 billion. Our customer is anyone within Europe in the age between 15 and 64, who wants to save money and still be able to travel by air to attractive destinations. This awareness of different passenger types requires marketing campaigns that cover all categories of potential customers. With this in mind we develope

Aiaa Ahs Asee Aerospace Design Conference 93 1100 93 1147


Author :
language : en
Publisher:
Release Date : 1993


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