The dissertation investigates the changes in modern airline industry after the terrorist attacks of 9/11 analysing the causes and consequences of the advent of cheap short-haul (SH) flights to small and medium size destinations. Literature is reviewed on the UK airline industry with the focus on the short haul airlines. The situation on the SH market between 2002 and 2006 is analysed using the model of Porter's Five Forces, the Diamond model, core competencies analysis, value chain analysis, etc. The factors influencing short haul airline markets are identified; the analysis of the major SH carriers is conducted including easyJet, RyanAir, bmi, and Jet2.com. Conclusions are made about the logic behind the budget airlines and the future trends in the short haul airline market.
The paper examines the decision of British Airways (BA) to acquire BMI describing the current situation in the global airlines industry, reporting on the competitive strategy of BA and indication the reasons for the BA acquisition of BMI. The concerns and the benefits related to the acquisition are discussed.
The paper examines CRM strategies used in low-cost airlines presenting an overview of the air travel market, addressing the problems of online booking, and analysing the strategies of customer relationship management in Ryanair, EasyJet and bmi baby.
The dissertation examines the performance of low cost airlines focusing on the strategies that make low fares possible and offering an overview of the air traffic industry including regulations on its liberalisation, the European single market, the Third Country routes, the strategy of flag carriers, the development of the European low cost carriers, etc. Comparison is made between direct and indirect operating costs of easyJet and British Midland airlines (BMI), and between the current fares of Ryan Air and BMI. Research methods include primary data collection through a questionnaire and a consumer survey. Conclusions are made about the competitive advantage of the low cost airlines and their leadership strategies.
The paper looks at the importance of scenario planning in business practices presenting a case study of Bmibaby, a subsidiary of British Midlands Airways Company. The procedure of building scenarios for the company's strategic development in the future is outlined using SWOT (TOWS) matrix.
This report presents a full analysis of UK No-Frills Airline Market, in a form of PESTEL analysis and Porters five forces, governing competition in the industry. Five main low cost airlines performance is also evaluated and presented in individual conducted SWOT analyses.
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