airline industry analysis
DESCRIPTION
TRANSCRIPT
Airline Industry By
Swapnil Mali 11037
Overview
• Goals
• Public Service. (Service to Customers)
• Return to Investors.
• Country Strategic Resource.
• World Players
• Delta Airline (US)
• United Airlines (US)
• Lufthansa (Germany)
• Ryanair (Ireland)
• Emirates (Dubai)
Airline Profitability
Profitability = [yield X load factor] - cost
• In order to survive and profit in this tough environment, airlines attempt to manipulate three main variables:
• Cost, calculated as total operating expenses divided by available seat miles (ASM)
• Yield, calculated as total operating revenues divided by the number of revenue passenger miles (RPM)
• Load Factor, calculated as the ratio between RPMs and ASMs, which measures capacity utilization.
Emirates airlines
• In 1985, Emirates Airlines was established by Dubai Government with just 2 aircrafts.
• Today Emirates has 83 aircrafts files to 78 destinations in 55 countries worldwide.
• It has a large number of cabin crews from 95 nationalities.
Marketing Mix1. PRODUCT • Travel / Cargo • Offer the high-quality, latest technologies and services• Emirates A380
Marketing Mix2. PRICE
First Class Business Class Economy Class
• Premium Pricing
• Another factor that determines ticket prices is the popularity of the route and the scheduled time for e.g. a 2 AM flight to London from Dubai will be cheaper than the morning flights
Marketing Mix3. PLACE • 122 Branches in major cities.• Internet
Marketing Mix4. PRAMOTION • The airline promotes it brand through various internet and
television advertisements along with sponsorship programs for major events, especially sporting events.
• It sponsors the annual Dubai Shopping Festival.
Marketing Mix5. PEOPLE • The employees go through extensive training programs to
ensure high quality service and customer satisfaction.
Marketing Mix6. PROCESS • First and Business Class Lounges, Special Services like assisting
disabled passengers and unaccompanied minors, Customer Relations, Baggage Services, Check-in and Boarding, and the Millennium
Airport Hotel.
Marketing Mix7. PHYSICAL EVIDENCE • Own terminal on Dubai international airport. • Lounge on most of destination airports. • TV screen for all classes. • World class food
Quality Dimensions• Tangibles
Quality Dimensions
• Reliability Timely arrivals and departures Airbus 380 ! Baggage insurance
• Assurance Trained employees
• Responsiveness
Customer Service 24x7
Assured reply for mail
Quality Dimensions• Empathy
Gives individualized attention Customer treated with best services
Thank You