Part A

The objective of this analysis is to find the preferred airline services. The Low-Cost Carriers (LCC) entails airline services with low fares and fewer comforts. The airline make up for the lost income through extra charges food, seat allocation among others. Ison, 2017, highlights the strengths and weaknesses of LCC. One of the strengths of the low cost carrier is the acceleration of the traffic growth of the airline. Investing in a higher number of seats and greater efficient airplanes saves on the operating costs of the airline. The weakness of LCC is brand perception and seasonality of earnings. The users of LCC expect high levels of punctuality and safe air travel at a lower cost which might not be the case. There is high earning during some seasons and low earning experienced in other seasons.  There has been a rapid rise in LCC as a popular alternative to mainstream airlines. Over the past decade, there is a significant shift in low-cost carrier’s market segment. There has been an expansion of the LCC and change in the business model. Its business model focuses on operational practices that lower airline costs. Also, LCC fly short-haul routes and return the base to avoid hangarage and other associated costs (Ison. 22)

The full-service carrier (FSC) offers its passengers checked baggage, beverages, flight entertainment comforts such as pillows and blankets and meals in the ticket price.

In most cases, the FSC has more legroom and seats with more recline.  One of the strengths of the FSC is the one cost ticket which might be the only cost one might incur. The FSC also allows one to buy tickets to destinations that are e directly connected to the departure destination. Strength is the convenience of the takeoff time. There is a chance for passengers to choose the class they want to use regarding their preference and affordability. Among the types are the economy class, business class, premium economy, and first class. One of the weaknesses of FSC is the high prices of the tickets which limit the number of passengers who instead opt for low-cost carriers. Another weakness is the rise in competitors who offer quality services at a lower rate thus causing the FSC airlines to revise their prices drastically (Cento, 29).

It is important to note that the price is not the only factor that separates LCC and FSC. There are other services such connecting flights, airline, and comfort, which the full-service Carrier offer in one ticket, unlike the Low-cost Carrier where one incurs other charges besides the ticket prices (Miller, 33).

Part B

The objective of this analysis is to establish the market positioning of Airbus and Boeing.

There are only two firms in the airline manufacturing industry; Boeing and Airbus. Each of the firms has strategies in place for positioning in the market place through flagship products.  One of the strengths of Airbus is the innovation in technology and designs. The firm has used modern technology in manufacturing and assembling the A 350’s production. Another Strength is the Eco efficiency. The firm has led by example for eco-efficient sustainable aviation. This has been affected through the launch of the blue five, which is an initiative that ensures waste reduction, CO2 reduction, energy saving and VOC reduction (Miller, 15).

One of the weaknesses of the Airbus is that the firm’s perceived demand for their product might not indeed exist. It has backlogs where the firm delivers less number of aircrafts in comparison to the orders placed. Another weakness of the Airbus is the operational inefficiency where delayed launches are noted. The production cost of Airbus is very high thus minimizing the profit margins of the firm. In the year 2001, the Airbus was formed through the integration of a consortium of various European Aerospace firms to make a single company. This was to position itself better for market competition against the large American Manufacturers. It has developed a single-aisle A320 and a twin Aisle A340 (Miller, 25).

The Boeing, on the other hand, has grown and controls a broader market of the commercial aircraft. It has come up with a wide range of aircrafts among them single aisle737, medium and range 767, long-range 777 as well as the jumbo jet. The firm is renowned for manufacturing weapon and attack aircrafts as well as the sate lights. Its varied products make it gain a competitive advantage over its competitor the Airbus.  One of the weaknesses of Boeing is the severe technological constraints in their new designs (Gould, 14).

Boeing as a company has a high competitive advantage if only they could invest more in technological innovations in their designs. The firm produces a higher number of airplanes and air crafts compared to its competitor. The company continuous growth indicates an increase in its valuation with time. The wide range of the aircrafts meets the needs of various users ranging from commercial, individuals and military as well space (Gould, 17).

Part C

Global trends have reshaped the GCC travel in the airline market. The need for digital technological innovation has weakened the relationship between the airlines and their customers. The GCC airlines have transformed their distribution business model and how they attract and sell to their customers. With the increase of internet penetration in the Middle East, there is an increase in mobile use thus leading to easier access and interaction with potential customers. Growth in the customer base enables the GCC airlines to extract more value from their services and products.  It is worth noting that social media has grown as a media of advertising. It shares first-hand experiences from satisfied customers as well as those who have complained which helps the airlines improve on customer relations and satisfaction.  These experiences influence the travel decision-making process. The airlines have put in place the loyalty programs that allow direct engagement with the customers and let them earn rewards such as cash and upgrades besides seat redemption. The organizational structure of the GCC airlines allows a functional collaboration in their operations which are geared to understand the customers’ needs and retention. For the airlines to make their services remarkable is to understand the current environment and the evolution of the aviation industry so that they keep customer through tailored and better facilities (Desai, 26).

The Asia and European carriers have put in place market strategies that would attract more customers and maximize their profits. The airlines have ventured into low fare strategy through the Dunning eclectic paradigm which sheds light on navigation and managing flights with low operational cost. Previously the European airlines had focused on tourism and charter market. With the change in the market trends, the airline also embraced the low-cost market environment. The airlines in 1985 such as the Air Berlin was founded on the tourism segment. The Easyjet and Ryanair were later introduced in 2000. The airlines have undergone relaunching and rebranding to maintain a competitive advantage in the aviation industry. The European Union has unregulated aviation market and economic area in which has no foreign ownership restriction and limitation in traffic rights (Asia, 68).

The Asia Pacific aviation market is more regulated with traffic rights and foreign ownership. The Asian airlines were launched in the 1960s and have gone through a rebranding and have also embraced the low fare flights. Asian airline has also relied on exports as an internationalization strategy. Other strategies of market entry welcomed by the Asia airlines are the contractual alliances and national subsidiaries as well as own bases (Starkie, 22).

The aviation industry is part of the service industry that competes to offer the best experience to its users in a bid to gain a competitive advantage. The Asian carriers have understood the market and tailored their services in a way to attract more customers as well as retain them. It has allowed loyalty programs that offer several packages to their customers such as gifts and earning points that are redeemable. It has embraced both traditional and formal advertising campaigns.  They have supported sporting events and food festivals to become household names. Flight perks also play a significant role in customer retention (Shishido, 14).

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