Fair Skies
Part A
Discount airlines
Discount airlines are also known as the low-cost carriers. This is airlines which have today changed the travel industry by offering direct flights and overhauls in fare structure. The most popular discount airlines in America are, Allegiant Air, Frontier Airlines, Gulf stream International air and Jet Blue Airways.
Jet Blue Airways.
Jet Blue Airways is a low cost airline in America owned by Jet Blue Airways Corporation. This company is based in Forest Hills, in New York. Blue Jet Airways flies to eleven countries in a total number of 60 destinations (Jet Air Tran Airways, 2010). Customers of Jet Blue enjoy a whole range of services. They enjoy customized versions of Amazon. com where they can shop and discover various products in the market. This is found at live TV which is absolutely free. They customers enjoy wireless internet access of high speed and it also free of charge. Jet Blue travel is all about style and comfort to customers. All flights have leg rooms with comfy leather seats. Drinks and food are provided to customers. Jet Blue airlines is the only air travel company in America which offers Customer Bill of Rights in which consumers can be compensated in case of any inconvenience.
Frontier Airlines
Frontier Airlines is owned by the Republic Airways Holdings with its headquarters In Indianapolis, Indiana. This low cost airline operates in most regions in the United States, Costa Rica and Mexico (Directory: World Airlines, 2007, p 85). Two thirds of the carrier’s destinations are in the western region of Mississippi River. The Frontier Airlines offer the lowest fares for classics, economy and classics plus. The services also suits customer with special needs. In case of delays, the needs of customers needs are met such as accommodation, restroom water, food and medical treatment.
Air Tran Airways
Air Tran Airways is an America low cost carrier under Air Tran Holdings. Its destinations are in the Midwestern and the eastern regions of the United States with over 1,000 daily flights. Its headquarters is based in Orlando International airports. The customers of this airline enjoy in-flight services such as access to the internet, XM satellite radio, go- in-flight magazine, complementary snacks and beverages mainly from the Coca-Cola company and also alcoholic beverages (Ashworth College Library, 2010).
Discount fare
Discount fare is a scheme that deals with the reduction of costs of an air ticket. This is with the aim of eliminating the traditional services for the passengers. This means that extra charges are charged on seat allocation, baggage, boarding, and food to make up for the lost revenue in ticket price reduction. Low costs airlines has changed the preference of consumers both in America and in Europe (Gross, and Schroder, p 12). The discount airlines have developed schemes that have seen the cutting down of cost.
Low cost carriers are also known as the no-frills airlines. This is with the aim of making short stretches have minimum expenses for the benefit of a traveler (Japan News Review, 2007).
Part B
It is important for us a company to weigh the opportunities, the strengths, the threats and the weakness that the company faces. Fair Skies Airlines is a company that is ready for complete transitions. This is with the aim of improving the financial condition and to stay competitive in the industry. Major competition is from the low cost air lines after the deregulation of airline industry b the government. These low costs airlines offer simplified structure in their fares in central America, the Caribbean and in Canada. This has made it necessary for Fair Skies Airline company to develop strategies that will ensure we provide the kind of service and products needed by travelers.
A SWOT analysis is important to determine the position of the company and to give a proper understanding of the airline industry. This will enable Fair Skies Airlines to make decisions based on the situation it faces and to develop strategies of maximizing its opportunities and strengths. Threats and weakness will be minimized and eliminated.
Strength
Fair Skies Airline has the advantage of having the product itself. This is the air travel which has withstood the test of time. Some of the challenges that the industry has faced are the security challenges as experienced in September 2001 bomb attack. This lead to a lot of financial losses in the US airline industry. By 2003 the unprecedented proportions of losses amounted to $23 billon. The largest airline in the nation went bankrupt. Since 2001 security measures have been heightened and airlines have been privatized.
A second advantage that Fair skies Airlines have is on the aspect of security. Security record on air travel since 2001 is perfect. The public has regained the confidence of traveling by air which is a safe and fast mode of traveling. This strength is recognized by the new low cost air carriers and the traditional brands.
The staff members we have at Fair Skies Airlines are well experienced and highly trained in various skills ranging from the flight attendants, the pilots, and the mechanics to the staff members on the ground.
Business-wise Fair Skies Airlines has the market segmentation ability. This applies even to routes that are the same. This allows us to develop princes in our service that will suit very customer’s needs.
Weaknesses
In the recent past, we have been experiencing a high rate of spoilage. This is especially experienced in the un-booked seat which will not produce any revenue. Secondly, there is a high capital outlay required for maintenance and buying new aircrafts to replace the old ones yet not, much profit have been made in the recent years.
We have not developed emergency schedules to suit the interest of customers especially the businessmen and women when they are faced with quick arrangements to travel in the soonest possible timer. This is difficult because of the commitment of the staff, leases, and other related factors.
Opportunities.
There is an expanded market for business and leisure destinations in the international arena. This is an opportunity which Fair Skies Airline has to venture in by developing direct routes to these destinations and to new destinations in various continents of the world.
There is the opportunity of new technology in the industry this can result to cost saving chances leading to increase of revenues. For example, aircrafts that are fuel efficient have been introduced in the market. Adaptation of new technologies by Fair Skies Airlines means that customer service will be friendlier such as the in-flight internet access. Value added products will also mean that customers will pay extra cash.
Linking up with other airlines is another opportunity for Fair Skies Airlines. This will see to it that the volumes of passengers have increased. This coordination can be with Frontier Airlines and the Gulf stream International air line to cater for customers in need of long distance destinations.
Threats
The major thereat that Fair Skies Airlines face is the high competition from low costs airlines like Air Tran Airways, Frontier Airways and Jet Blue airways.
The global economy affect leisure and optional travel destinations negatively .The price of air plane fuel is still very high. Intervention from government can result to international competition unexpected costly rules (LLC, 2010).
Part C
The people to be interviewed are;
1. The upper management staff members
What are the expected pressures to be face from consumers concerning lower fee.
Are there pressures to lower fuel surcharged as results of lowered fees?
2. Frequent customers
What do you think about the new changes?
Do you actually find that the low charges will mean cheaper cost of travel.?
3. Potential customers
Why who do you choose Fair Skies as your best option in traveling.
4. Lower staff members
What do you think will be changed in your duties in the company following the changes?
Part D
MEMO.
Starting from next Month, 1 September 2010, new changes to Fair Skies will be implemented. Marketing of the airline is important starting this month and will continue for a period of one year before new marketing strategies are implemented. The interview will be beneficial to know what customers and the staff members feel about the changes. The SWOT analysis is beneficial is accessing the current state of the company as well as the opportunities it has to venture into. The management team has to be cooperative and ensure that Fair Skies become successful by implementing sustainable strategies.
Yours faithful,
TASTGASASJ
Marketing director.
Reference
Fact Sheet. (2007)Frontier Airlines. Retrieved from.
Directory: World Airlines” Flight International: p. 85.
http:// www. eve. info/ download/ katalog/ inhvzch/ 9783503100811.pdf
on August 28, 2010
Gross A and Schroeder, A. (2007.): Handbook of Low Cost Airlines – Strategies, Business Processes and Market Environment, p 342
Japna News Revioew (2007)Low-cost airlines making their way to Japan. Retrieved from
http://www.japannewsreview.com/travel/20071218page_id=3494.
On August 28, 2010.
LLC Editor, (2010) Low-Cost Airlines: Southwest Airlines, West jet, Frontier Airlines, Golf Transportes Areos, Air Tran Airways, Jet blue Airways, Ryan air, EasyjetAuthorBooks, LLCEditorBooks, LLCPublisherGeneral Books, p 342
Ashworth College Library (2010), Discount airlinmes. Retrieved from
http://www.thefreelibrary.com
on August 28, 2010
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