Posted at 06.10.2018
Air travel remains a sizable and growing industry. It helps economic development, world trade, international investment and tourism which is therefore central to the globalization occurring in a great many other industries.
In days gone by decade, air travel is continuing to grow by 7% per time. Travel for both business and leisure purposes grew firmly worldwide. Appointed airlines taken 1. 5 billion travellers last year. Inside the leisure market, the option of large aircraft like the Boeing 747 made it convenient and affordable for folks to visit further to new and exotic destinations. Governments in developing countries came to the realization the benefits of tourism to their nationwide economies and spurred the introduction of resorts and infrastructure to lure tourists from the prosperous countries in American Europe and North America. As the economies of expanding countries grow, their own individuals already are becoming the new international holidaymakers into the future. (Source: http://adg. stanford. edu/aa241/intro/airlineindustry. html). Airlines' profitability is closely linked with economic growth and trade. Despite this, the flight industry has proceeded along the road towards globalization and loan consolidation, characteristics associated with the normal development of many other business. It did this through the establishment of alliances and partnerships between airlines, linking their networks to expand usage of their customers. A huge selection of airlines have inserted into alliances, which range from marketing contracts and code-shares to franchises and equity transfers.
As discussed initially the flight industry is seen as the perfect revenue making agent, understanding its dynamics is vital for enabling the airline companies in keeping its competitive edge. Thus English Airways which so far is an proven leader in this market segment confronted with various troubles to retain its market share with its competitors like Easy Jet which is UK most popular flight. The topic is therefore relevant in recognition of such troubles and creating a complete understanding for the marketplace dynamics and functioning of Uk Airways in achieving such challenge and its own proper plan towards future expansion. The scope of the paper is to build up a critical overview of British Airways which is one of the high quality airlines and Easy Jet one of the neighborhood airlines in UK you start with its SWOT research and then appreciating its operations, marketing strategies and target market. Once this understanding is developed, the next step is to check out the Airlines marketing mix and other key success factors and then assessing its competitor's panorama that finally will permit the company in keeping its position on the market.
British Airways with its amazing magnitude of functions can focus on a wider customer base on a worldwide scale. The magnitude of procedure of its competitor's airlines is bound to fifteen times less with regards to BA (Fedrick, 2002). At the central of its operation lies the strength of the airline that includes its new fleet of aircrafts bought frequently to check the increasing demand of passenger traffic guaranteeing their comfortable travel. This move was a proper decision in response to offset the wretched express of travel and complaints from the prior fleet employed by the airlines.
EasyJet is Europe's leading low fares flight. Made in 1995 by Sir Stelios Haji-Ioannou, it has grown rapidly to be Europe's fourth greatest airline by travellers carried. The first was "sweating the assets", that is ensuring the planes were as full as you possibly can and flying as much as possible. The next was a sophisticated yield management system which would place an infinite number of fares for confirmed flight, based on the demand and supply position for this trip. (Source: http://www. air-scoop. com/downloads/SWOT_easyJet_Air-Scoop. pdf).
EasyJet's strategy has six key foundations:
1. Strong branding: easyJet has invested a great deal in PR and advertising. It's been coming in flight Television programs and created strong brand information in catchment areas through advertising. The neon orange 'easy' brand symbolized value for money. Sir Stelios has been known turn out in public and show against any increase in taxes and also exhibit strong support to a greener environment.
2. Costs and income management: The airline comes after a one-way, time- reliant charges with only online reservations except for two weeks before take-off, when tele-booking is allowed.
3. Lower unit costs: Although easyJet has lower operational costs, its operating margins are lower than Ryanair. It is because it flies to major international airports most of the time, uses two main types of fleet, invests heavily in advertising and pr and adopts limited energy hedging. Its fares are also much higher than that of Ryanair (but it gets to some extent gets neutralized by the bigger distance of Ryanair airports from city and town centers).
4. Network strategy: easyJet comes after a point-to-point road connection and grows by joining dots. It targets getment areas and low prices to obtain traffic.
5. Employee culture: easyJet employs around 4, 859 people around Europe. In conditions of culture, easyJet favours an informal company culture with a very level management structure, which minimizes unnecessary and wasteful tiers of management. Mission of easyjet 'To provide our customers with safe, value, point-to-point air services. To effect and to give you a steady and reliable product and fares appealing to leisure and business markets on a variety of Western european routes. To achieve this we will establish our people and create lasting relationships with our suppliers. (Source: http://www. easyjet. com/en/about/). Objective of British Airways is 'BA has shown that redefining the eye-sight, and ensuring it is successfully carried out throughout the organization, are tips to corporate success. As opponents became aware that service mattered and geared their operations to suit, British Airways has leapt forwards again, now determining its target being the 'undisputed leader in world travel'. (Source: http://www. jyanet. com/cap/0614fe0. htm).
British Airways with its amazing magnitude of functions can cater to a wider customer foundation on a worldwide size. The magnitude of procedure of its competitor's airlines is bound to fifteen times less with regards to BA (Fedrick, 2002). At the central of its operation lies the strength of the airline that includes its new fleet of aircrafts bought frequently to complement the increasing demand of traveler traffic ensuring their comfortable travel. This move was a proper decision in response to offset the wretched point out of travel and complaints from the prior fleet used by the airlines.
According to Doganis (2006) the international airline industry to the outsiders is exciting, strong with the best technology and the glamorous jobs. It really is popular in the economical circles that the profitability of the airline industry is seasonal, requires large predetermined and operational costs and in the recent years are constrained by inside and external problems. The British isles airways are not alien to such problems but it has to be said that in the recent past it includes suffered more problems than its immediate and far away competitors. The ash cloud over European countries and the carrying on industrial action are two examples of external and inner problems clogging the English Airlines. The upside is the fact, its large number of operations enhances its option of the potential customers in not only UK but also across the world. Furthermore, with increase in the number of airlines, competition has soared up amidst the prevailing players to attract the major market show. BA thus has started out offering plans to draw in more customers by providing them an improved mileage for their money and improve their revenues.
As the demand for faster mode of commuting is increasing with globalization BA should develop its marketing strategy in a way that it corresponds to the future trend in the market. Again to meet the customer needs it needs to maintain a healthy environment for its employees. Furthermore, to improve the customer base additionally it is important to comprehend the strategies of its opponents as accessibility of Virgin Airways is posing hazard for BA. As Kotler (1999) has recommended understanding a competitor's strategy is relevant step in building company's strategy for if competitor's strategy is undifferentiated marketing, firm can gain a competitive edge by using differentiation. Whereas if the competitors company is using differentiation strategy, the effect on the target organization can be suicidal. (Kotler, 1999)
Once the prospective market is set, it could be segmented for positioning. For target market group assists with recognition of the group that makes the marketplace and then aligns the firm's services according to that organizations need thus decide the market-mix.
One of the initial top features of the BA is its onward looking claims. These statements infact act as data house of information that helps in projection of various areas of operations and financials combined with the future plans of the company. Such statements act as an important way to obtain information from investor's perspectives as well.