Low cost airlines case study PDF

Preview

Summary

Download Low cost airlines case study PDF

Description

Low cost airlines case study

What is specific with Low cost airlines? The specifics that come with being a low-cost airline are:       

Not giving the consumers any membership rewards Using secondary airports to avoid hefty airport fares Using second-hand planes No “free” amenities on board The airline does not offer free cancelations You compete in a price market You must constantly innovate to fight for the lowest prices

What are the legal frameworks used by low cost airlines to minimize costs? The legal frameworks include: Going to secondary airports Modifying the plans to make them more cost efficient Avoiding and appealing against compensation rules set by the EU Look at the contractual process for buying a ticket on the internet and consider the benefits and the risks for the consumers and the low cost airlines          

You can book on the internet app or by calling them You can book for large groups (up to 40) Government tax is added onto your ticket making the price variable If the taxes raise in between you buying your ticket and you taking your flight you must pay the difference Charges in case of misconduct 24 hour cancelation is available In case of illness you may have a refund in the object of a voucher Fees when changing bookings Name change fee 28 days delay for an answer after a complaint

What conflicts arose between EU regulations and low cost airlines? Find examples from the reading materials to explain your answer. Do such conflicts impact the customer experience? The Eu passed a new law where the low cost companies must pay compensation towards their customers for problems that are not in their control. This goes against the low cost airlines as the compensation rate is flat. The easyJet director of communications said that it is not possible for them to pay a flat rate that is more expensive than their highest ticket price

What do you think about the arguments of easyjet (see easyjet website) contesting EU compensations rules for air Passengers? Easy jet competes with their low prices. The compensations make them lose consequential money in case of an unjust law. Easy jet is justified in contesting this law because it represents a financial barrier in their business model. This said, easyjet can’t ask for “special treatment” as every airline is subject to this law. If easyjet was to partner up with other lowcost companies their appeal would have a better change of working How can low cost airlines adapt their models?...