Strategic Management in the Airline Industry Assignment

Strategic Management in the Airline Industry - Assignment ExampleIn the terminal couple of decades, the advent of low-cost carriers has reinvented the airline industry. These efficient carriers offer essential service to travellers flying point-to-point suddenly haul routes utilising efficient ticket distribution through direct internet offerings and utilise standardised concisely haul aircraft with quick gate turnaround times to maximise aircraft utilisation. South West Airlines is the pioneer in this segment in the US and EasyJet is the industry leader in this segment in Europe. Other hearty players in this segment include Jet Blue in the US and Ryan Air in Europe.The 9/11 tragedy, did cause a slump in the airline industry, but also gave valuable lessons. either the major airlines slowly woke up to the inefficiencies in their models and started drastic cost cutting measures translating into better operational efficiencies and change margins in order to avoid slide into bankr uptcy. The low cost airlines were the only ones that were able to manage the downturn due to their business models.The major overhaul in the restructuring has gone a long way in changing the face of the aviation industry. Deregulation opened up the skies and brought in to a greater extent players increasing the aspiration many fold. Consolidation is the name of the game and slowly the industry will consolidate into three or four major players and their improved synergies will end up contributing to a stronger airline. This focus on regional traffic will allow low-cost carriers to focus on their niche securities industrys and improve their market sh be. The low-cost market is less mature in the Europe than the U.S.A, therefore there is more domain for newer routes to be opened up, and newer destinations charted out for a few years before the restructuring and consolidations occur.From the legacy days of monumental airline companies monopolising the market place, the airline indu stry has fast become a price-sensitive industry. In the post family line 11 era, the airline offerings are more commodity-like, with players who offer the lowest price and efficient services organism the most profitable survivors. Most large full service airlines have been facing the brunt of the decline and are fighting for survival, trying to get out of multi-billion dollar losses and bankruptcies. (Source from website http//www.findarticles.com/p/articles/mi_qa3884/is_200509/ai_n15613234)In this changed landscape emerged the no frills airlines segment, which have achieved rapid growth in market share into the short haul European market. EasyJet, intake of Stelios Haji Ioannou, the son of a Greek shipping magnate who founded the company, based on the low cost, no-frills model of the US carrier Southwest, started in 1995. EasyJet is based on short haul air merchant vessels in a price in-elastic target segment and based on the concept that is that if prices are reduced, more peop le will fly. EasyJet flies to 33 locations in Europe with a fleet of over long hundred aircraft and sells over 95% of its tickets through the Internet. Its the leading player in the low cost market after(prenominal) the acquisition of GO(A no frills subsidiary of BA), closely followed on its heels by rival Ryanair which has now acquired hum (a subsidiary of KLM) and expanding as well. Virgin Express of Virgin airlines and British Midlands BMI baby are all competitors in the no-frills sector. (Source Case study EasyJet-The spectacular