TL1167 ASSIGNMENT SAMPLE 2024
Introduction
The company of airline provides the services of air transport to its freight and passengers. There are multiple types of airlines such as international, regional, and national. The study is going to discuss the services of airlines, their types, and low-cost airlines. The customers of airlines can select one option between premium and budget. Moreover, the study will discuss the concept of airlines in this essay.
The companies of airlines have existing operating and fixed costs in order to maintain and establish air services such as engines, airplanes, fuel, labor, advertising, booking commissions. Furthermore, the major expenses that affect airlines companies will be defined in this study.
Main body
Services of airlines
There are multiple kinds of services that the organizations of airlines provide such as technical assistance, training of airport handling, passenger handling, allied services, ULD repair facility, and ramp handling. The organizations of airlines have fixed and operating costs in order to maintain their services (Phothisuk, 2019).
The customer services of airline companies provide customer support to each customer before, after, and during a flight. In 2021, Qatar Airways received the awards of world airline. In-flight, airline companies offer to their passengers checked baggage, beverages, meals, comfort, and entertainment.
The management of airlines needs to ensure the comfort of its passengers. There are about 5,000 airline companies with the code of ICAO. The management of airlines has focused on the matter of customer services in order to maintain customer satisfaction and secure journeys.
Employees of airlines in order to provide effective customer services get feedback from their passengers, communicate with them, and analyze the feedback on social media effectively (Țigu and Stoenescu, 2017). The authority of major airlines is focused on the commitment to quality and safety. Organizations of airlines ensure to provide quality, satisfactory and safe services of ground handling to its passengers. The management of airlines organizations provides effective training to its employees in order to provide effective services to its passengers.
The services that airlines provide such as engineering services, ULD repair facility, charter handling, training of airport handling, technical assistance, and aircraft recovery assistance. The management of airlines needs to ensure a healthy and safe journey for its passengers. Moreover, the authority of airlines provides effective offers of air transport to its customers. Effective customer services and trust are essential in the growth of an organization.
The management of airline organizations provides appropriate training in customer services, airport handling, and development to its employees in order to provide effective services and ensure a safe journey (Stoenescu and Gheorghe, 2017).
Management of airline companies provides effective entertainment, comfort, beverages, and meals to its passengers in order to maintain effective customer satisfaction. Therefore, the services of airline organizations ensure a healthy, safe, and secure journey for their passengers.
Types of airlines
In the concept of airlines, there are mainly three types such as regional, national, and international or major. The organizations of regional airlines provide services to their customers in a particular region of a particular country. The companies of national airlines provide the services of regional as well as international routes and long-distance.
As per the opinion of Song et al. (2021), there are a huge number of staff in national airlines rather than the staff of regional airlines. Of the three types of airlines, international airlines are the largest and major airline. In the organizations of international airlines, the number of staff is more than regional and national airlines. The companies of international airlines provide air transport to freight and cargo over long distances.
There are different options of airlines as well as there are different models of airline business in order to operate such as full-service carriers, low-cost carriers, holiday carriers, and cargo carriers. In the category of regional airlines, passengers can get the services in a particular region in any country.
As per the opinion of Song et al. (2021), the organizations of national airlines provide regional services to its customer. In the industry of airlines, there are a variety of categories such as major airlines, regional airlines, and national airlines, in order to provide effective customer services and fulfill the needs of their customers.
The industry of airlines is like other industries, due to which there are multiple categories of airlines as customers have a variety of types of needs. There are mainly three categories in the concept of airlines such as regional airlines, national airlines, and major airlines. In the concept of regional airlines, there are three groups such as large regionals, medium regionals, and small regionals.
In annual revenue, large regionals are scheduled to carry approx $20-million to about $100-million. About 60 passengers can travel in the category of large regionals. Medium regionals operate and provide services to their customers on a smaller scale and operate revenue approx $20-million (Stoenescu and Gheorghe, 2017).
There is no particular revenue definition in the concept of small regional airlines and in order to provide services to their customers they use a small size aircraft with the number of 61 seats.
Airline business models
There are three categories in the concept of airlines’ business models in order to operate and provide services such as low-cost carriers, charter carriers, and full-service carriers. As per the opinion of Song et al. (2021), in the concept of a full-service carrier, it operates in a country, and with inflight it provides checked baggage, blankets, pillows, entertainment, and meals. There are multiple flight options such as economy, business class, and first-class.
In the industry of airlines, there are multiple elements in full-service carriers such as core business, customer relationship management, alliances development, global plates, distribution systems, and multi-channel sales. Some examples of this business model include American Airlines, Air France, and Air Canada.
In the business models of low-cost carriers, the services are classified as it does not provide traditional services like full-service carriers. Availability of services like meals, entertainment, and blankets does vary on their budget.
There are many key elements in the model of low-cost carriers such as core business, secondary airports, no-frills services, reservation costs, single aircraft fleet, and aircraft utilization (Rodríguez-García et al. 2020). In low-cost carrier services, the companies have a competitive advantage. Examples of this airline business model are JetBlue, WestJet, Southwest Airlines, and Ryanair.
Charter carriers or holiday carriers provide and offer travel of holiday by signing contracts with agencies of tourists or travel. This business model encourages group travel rather than individual ticketing. As per the opinion of Wehner et al. (2018), the agencies of travel are responsible order to filling seats in an aircraft. In choosing an airline, there are a variety of options that passengers get.
There are effective competitive advantages in the category of low-cost carriers on the basis of cost over full-service carriers. In full-service carriers, passengers get multiple options during travel such as first-class, economy class, and business class (Štimac et al. 2020). The services of low-cost carriers depend on the budget and the price of tickets in low-cost carriers are reasonable rather than full-service carriers. The concept of charter carriers, provides holiday travels to its customers by agencies of tourists and travelers.
Major expenses that affect airline companies
In the industry of airlines, the major expenses depend on the price of fuel and labor costs. In the transportation of air, there are multiple factors that enhance changes such as market integration, competition, and technological development. As per the opinion of Lohmann and Spasojevic (2018), there is a requirement for an effective work structure and work strategy in order to provide effective services.
In the industry of airlines, passengers get multiple options such as major airlines, regional airlines, and national airlines. There are multiple categories of business models in order to operate airline services such as low-cost carriers, charter carriers, and full-service carriers. In the concept of competitive advantage, there are three categories such as agility, differentiation, and cost (Sengur and Sengur, 2017). The cost and revenue structure of the airline industry depends on the services of non-operating and operating issues.
In the airline industry, there are many factors that affect airline costs such as airline financial policy, quality of management, corporate strategy, airline marketing policy, route structure, aircraft types, and cost of labor. The major expenses of the airline industry depending on the matter of labor and fuel (Moir and Lohmann, 2018).
There is a need for effective management in order to monitor the entire work process to ensure a secure and safe journey. The services of airlines depend on the concept of a budget. The cost of labor is fixed in the short term and the costs of fuel can swing intensely on the basis of the price of oil. The management of the airline industry needs to pay more attention and focus on fuel costs.
The lower expenses in the industry of airlines are airport fees, handling luggage, passenger expenses, maintenance, marketing promotions, commissions of travel agents, and management. As per the opinion of Carlucci et al. (2018), in the situation of the high price of fuel, the management of airlines increases the costs of tickets and cuts the costs of labor.
Nowadays, the majority of customers prefer brand loyalty and service quality. The airline industry needs to compete and focus on price and cost rather than quality in order to gain profit.
Budget and premium airlines
In the industry of airlines, there are a variety of options and services that passengers can select in traveling. On the basis of services, there are mainly three categories such as luxury airlines, traditional airlines, and budget airlines. The concept of budget airlines services focuses on price and cost rather than comfort (Qin et al. 2020). There are many examples of budget airlines including Iberia, Finnair, and Norwegian Air.
The services of traditional airlines are effectively established and they provide effective standard services. Luxury airlines services are focused to provide effective services based on the standard of luxury (Gao and Choy, 2019). First-class or business class with luxury airline services provide and offer standard luxury services during traveling.
Business-class with the services of budget airlines, a passenger can get low-quality food, slightly bigger seats, and no additional services. In the services of traditional airlines, a passenger can get effective services, fine dining options, entertainment rooms, private shower rooms, luggage storage, private meeting rooms, and complementary foods (Patel and Ali, 2017).
In the services of luxury airlines, there are multiple qualities of services that a passenger gets such as exclusive access, effective foods by the chefs who won awards, effective art facilities, entertainment facilities (Setiawan et al. 2018). In luxury airlines services, the passengers get the services of first-class, the quality of foods and seats are more effective than traditional airlines and budget airlines.
In the industry of airlines, passengers get a variety of options of services and services based on the cost of tickets. Business-class with the services of low-cost airlines, passengers get the services of traditional airlines (Kamarudeen and Sundarakani, 2019). In the services of an airline, the customers need to select between premium and budget. The services of budget airlines include EasyJet, Jet2tweets, Ryanair and the services of premium airlines include Emirates, Heathrow, Virgin Atlantic, and British Airways.
Conclusion
Based on the above discussion it can be concluded that a customer can get a variety of options of services. The services during traveling depend on the cost and selection of tickets. Moreover, there are mainly three types of airlines such as major or international airlines, national airlines, and regional airlines. In the industry of airlines, there are multiple business models in order to operate services such as full-service carriers, charter carriers, and low-cost carriers.
The major expenses that affect the cost of airlines such as labor cost and fuel cost. Therefore, the services of budget airlines and premium airlines have been discussed in this study. In the services of premium airlines, passengers get effective luxury services and comfort whereas, in the services of budget airlines, customers get services like traditional airlines.
References
Carlucci, F., Cirà, A. and Coccorese, P., 2018. Measuring and explaining airport efficiency and sustainability: Evidence from Italy. Sustainability, 10(2), p.400. Available at: https://www.mdpi.com/260342
Gao, Y. and Choy, N.W.K., 2019. Brand awareness, purchase intention and price premium of international airlines operating between Australia and the United Kingdom. International Journal of Aviation, Aeronautics, and Aerospace, 6(3), p.10. Available at: https://commons.erau.edu/ijaaa/vol6/iss3/10/
Kamarudeen, N. and Sundarakani, B., 2019. Business and supply chain strategy of flying above the dessert: A case study of Emirates airlines. In 8th International Conference on Operations and Supply Chain Management, Cranfield (pp. 1-17). Available at: https://journal.oscm-forum.org/journal/proceeding/download_paper/20191207220134_OSCM_2019_paper_166.pdf
Lohmann, G. and Spasojevic, B., 2018. Airline business strategy. In The routledge companion to air transport management (pp. 139-153). Routledge. Available at: https://www.taylorfrancis.com/chapters/edit/10.4324/9781315630540-10/airline-business-strategy-gui-lohmann-bojana-spasojevic
Moir, L. and Lohmann, G., 2018. A quantitative means of comparing competitive advantage among airlines with heterogeneous business models: Analysis of US airlines. Journal of Air Transport Management, 69, pp.72-82. Available at: https://www.sciencedirect.com/science/article/pii/S0969699717304192
Patel, P. and Ali, A., 2017. Budget airline operations optimization using linear programming. In Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 3496-3504). Available at: http://ieomsociety.org/ieom2018/papers/719.pdf
Phothisuk, A., 2019. Waste reduction from the in-flight services of Airlines in Thailand. St. Theresa Journal of Humanities and Social Sciences, 5(2), pp.110-119. Available at: https://61.7.149.174/index.php/sjhs/article/view/134
Qin, T., 2020, September. Elevating Value Marketing Strategies in Singapore Airlines Driven by Macro and Micro Environment. In The 3rd International Conference on Economy, Management and Entrepreneurship (ICOEME 2020) (pp. 271-279). Atlantis Press. Available at: https://www.atlantis-press.com/article/125944408.pdf
Rodríguez-García, M., Orero-Blat, M. and Palacios-Marqués, D., 2020. Challenges in the Business Model of Low-Cost Airlines: Ryanair Case Study. International Journal of Enterprise Information Systems (IJEIS), 16(3), pp.64-77. Available at: https://www.igi-global.com/article/challenges-in-the-business-model-of-low-cost-airlines/259372
Sengur, Y. and Sengur, F.K., 2017. Airlines define their business models: a content analysis. World Review of Intermodal Transportation Research, 6(2), pp.141-154. Available at: https://www.inderscienceonline.com/doi/abs/10.1504/WRITR.2017.082732
Setiawan, M.I., Surjokusumo, S., Ma’Soem, D.M., Johan, J., Hasyim, C., Kurniasih, N., Sukoco, A., Dhaniarti, I., Suyono, J., Sudapet, I.N. and Nasihien, R.D., 2018. Business Centre Development Model of Airport Area in Supporting Airport Sustainability in Indonesia. In Journal of Physics: Conference Series (Vol. 954, No. 1, p. 012024). IOP Publishing. Available at: https://iopscience.iop.org/article/10.1088/1742-6596/954/1/012024/meta
Song, M., Choi, H.J. and Hyun, S.S., 2021. MBTI Personality Types of Korean Cabin Crew in Middle Eastern Airlines and Their Associations with Cross-Cultural Adjustment Competency, Occupational Competency, Coping Competency, Mental Health and Turnover Intention. International Journal of Environmental Research and Public Health, 18(7), p.3419. Available at: https://www.mdpi.com/1660-4601/18/7/3419
Štimac, I., Vidović, A., Mihetec, T. and Drljača, M., 2020. Optimization of Airport Capacity Efficiency by Selecting Optimal Aircraft and Airline Business Model. Sustainability, 12(10), p.3988. Available at: https://www.mdpi.com/715222
Stoenescu, C. and Gheorghe, C.M., 2017. Hybrid” airlines–Generating value between low-cost and traditional. In Proceedings of the International Conference on Business Excellence (Vol. 11, No. 1, pp. 577-587). Available at: https://sciendo.com/pdf/10.1515/picbe-2017-0062
Țigu, G. and Stoenescu, C., 2017. Stopover Tourism–connecting airlines, airports and tourism organizations. Knowledge Horizons–Economics, 9(2), pp.54-58. Available at: http://orizonturi.ucdc.ro/arhiva/khe-vol9-nr2-2017/8.%20STOPOVER%20TOURISM.pdf
Wehner, C., López-Bonilla, J.M., López-Bonilla, L.M. and Santos, J.A.C., 2018. State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines. Tourism and Management Studies, 14(3), pp.32-40. Available at: https://sapientia.ualg.pt/handle/10400.1/12706
Know more about UniqueSubmission’s other writing services:
