Aviation Strategy & Planning

Aviation Strategy & Planning

Part A

The objective of this analysis is to determine the preferred airline services. The Low-Cost Carriers (LCC) entail airline services with low fares and less comfort. The airlinesrecoup the lost income through extra charges on food, and seat allocation among others. In the book Low-Cost Carriers: Emergence, Expansion and Evolution,Ison(22), highlights the strengths and weaknesses of LCC. One of the advantages of the low-cost carrier is the acceleration of the traffic growth of the airline. Investing in a higher number of seats and airplanes that are efficient saves on the operating costs of the company. The weaknesses of LCC includepoor brand perception and the seasonality of earnings. The users of LCC expect high levels of punctuality and safe air travel at a lower cost, which might not always be the case. Moreover, the aspect of seasonality means that there are high earnings at specific periods and low revenues during other times of the year.  There has been a rapid rise in LCC as a popular alternative to mainstream airlines. Over the past decade, there has been a significant shift in the low-cost carrier’s market segment(Ison 22). There has also been an expansion of the LCC and change in the business model. The commercial model for LCC focuses on operational practices that lower an air company’s operational costs. Besides, LCCs fly short-haul routes and return to base in a bid to avoid hangarage and other associated costs.

The full-service carrier (FSC), on the other hand, offers its passengers checked baggage, beverages, in-flight entertainment,other comforts such as pillows and blankets, and meals in the all-inclusive ticket.In most cases, the FSC has more legroom and seats with more recline. One of the strengths of the FSC is the all-inclusive ticket, which,in most cases,is the only cost that the client will incur during the flight. The FSC also allows one to buy tickets to destinations that are directly connected to his or her departure destination. One significant advantage of full-service carriers is the convenience of the takeoff time. There is a chance for passengers to choose the class they want to use according to their preference and affordability. Among the types of tickets, available include the economy class, business class, premium economy, and first class(Cento 29). One of the weaknesses of FSC is the high prices of the tickets, which limit the number of passengers as most people tend to opt for low-cost carriers. Another weakpoint is the rise in the number of competitors who offer quality services at low rates thus causing the FSC airlines to revise their prices drastically.

It is important to note that the price is not the only factor that separates LCC and FSC. There are other services such as connecting flights, different airline policies, and comfort.The full-service Carrier offers all the mentioned services in one package (Xu andDingjun

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