lccs of australia

7/30/2019 LCCs of Australia

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Mohsin Azhar Shah BAM-9205

(Group Leader)

Saqib Mehmood BAM-9207

Saad Shoaib BAM-9210

Arslan Aslam BAM-9234

Ibrahim Tariq BAM-9239


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Low Cost Carriers of Australia


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Australia is a country, an island, and acontinent

It is the 6th largest country in the world

Australia is considered a developed nation

It has the world's thirteenth largest economy

It is known for a high life expectancy, itseducation, quality of life, biodiversity and

tourism


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It is located in Southern Hemisphere between theIndian Ocean and the South Pacific Ocean

Its major cities are Brisbane, Sydney, Perth,

Melbourne, and Adelaide

Its Capital city is Canberra.

Population: 17.5 million

Australia is home to many animals like kangaroosand koalas, sharks and thousands of differenttypes of tropical fish


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Compass Airlines (1990)

Impulse Airlines (1992) (Acquired by Qantas and rebranded as Jet Star)

Virgin Blue Airlines (2000) (Transitioned into a full-service airline, now known

as Virgin Australia)

Jet Star Airways (2003)

Tiger Airways Australia (2007)


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LCC is a relatively new phenomenon firstemerged internationally in the 1980's as aconsequence of Airline Deregulation

Australia's first low cost airline, CompassAirlines, began operations in 1990, and

collapsed around a year later


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Compass I was Australia's first low costairline. It was established afterderegulation of Australian Aviation industryin 1990


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Compass Airlines, later referred toas Compass Mk Iwas founded and startedoperations in 1990 in Australia

Compass Mk I was established by BryanGrey, who had previously run regional

airline named East-West Airlines


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At its peak Compass Mark I operated fiveleased Airbuses. Two of them were leased from Britishcharter carrier Monarch Airlines

Compass Mk I collapsed little more than a year after itsfirst flight, Due to:

1. Undercapitalization

2. Sustained fare discounting by the competitors andfailing to make use of its potential to also carry freight

3. Not provision of suitable facilities by government (adispute with the Govt.)


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Compass Airlines initial operations werealso significantly disrupted by whatappeared to be a computer attack on theirreservation system

On 20 December 1991, Compass Airlines

was grounded


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Compass Mk IAirbus A300B4-605R..4

Airbus A310-304.1


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Compass Mk II was conceived as Southern CrossAirlines but chose to trade under the Compassbrand, which seemed to have popular support

It commenced operations in 1992 withfive McDonnell Douglas aircraft

It collapsed less than a year later in 1993

Southern Cross chairman Douglas Reid wasconvicted in 1997 of theft and false accountingamounting to $10 million in relation to the collapse.He received a record 10 year jail sentence


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Compass Mk IIMcDonnellDouglas MD-82.3

McDonnell

Douglas MD-83.2


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Tiger Airways AustraliaPty Ltd is a whollyowned subsidiaryof Tiger AirwaysHoldings Limited,

which is publicly listedon the SingaporeExchange

It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by SingaporeAirlines


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It commenced services in the Australian

domestic airline market on 23 November2007

The airline is based in Melbourne, Victoria,

with its main base at Melbourne Airport


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On 16 March 2007 Tiger Airways Australia Pty. Ltd.was incorporated in the Northern Territory,although the company is based in Melbourne,with Melbourne Airport being the airline's major

hub Five aircraft and A$10 million were committed to

start the subsidiary

Tiger Airways Australia's first scheduled flight wasTT 7402, which departed from Melbourne for theGold Coast on 23 November 2007


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Australian government policy andlegislation currently permits airlines thatare 100% foreign-owned to operatedomestic airline services within the country

Australian international airlines are still

subject to ownership rules that limit foreignownership to 49%


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Tiger undertook the final stage ofAustralian regulatory procedures on 20November 2007

Tiger received its Air Operator's Certificateon 22 November


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The airline's business model is based onthat of sister airline Tiger Airways, whichattempts to increase the total market size(number of passengers), control operatingcosts, and maximize the number of sectorsserved

One way it planned to keep costs low wasby avoiding expensive airports


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As of October 2012, the Tiger AirwaysAustralia fleet consists of the followingaircraft with an average age of 4.3 years


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Tiger announced on 3 April 2009 theirintention to launch in the MelbourneSydney market, the fifth busiest passenger

route in the world, signaling an end to itsoperational policy of avoiding expensiveairports


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The airlineprovides thefree Tiger

Tales in-flightmagazine anda buy onboard program

serving snacks,soft drinks, beerand wine forpurchase


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The airline provides the free Tiger Talesin-flight magazine and a buy onboard program serving snacks, soft drinks,

beer and wine for purchase

In June 2010, Tiger implemented a"cashless cabin" environment, in that it

only accepted Visa or MasterCard foronboard purchases. This new method waslater dropped


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The arrival of Tiger Airways Australia in themarket resulted in varied responses fromits primary competitors,

mainly Qantas (and its subsidiary Jet StarAirways) and Virgin Australia

Air fares began to drop as special offersand other promotions were launched


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When Tiger released its first routeMelbourne to Darwinat a price of A$79.99,Jet Star immediately undercut the price,offering fares of A$79 on the same route over

the same period

When Tiger released its second route

Melbourne to Gold Coastat a price ofA$49.95, Jet Star again undercut the price,offering A$39 fares on the route over thesame period


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Tiger Airways Australia celebrated its firstanniversary on 19 November 2008 with a"Free Seats" campaign, which resulted in

100,000 seats on sale, of which half soldout within the first few hours

The airline celebrated its second birthdayon 23 November 2009 with thousands ofseats on sale for A$2


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On 7 March 2012, Tiger Airways announcedthat it will reopen a second base at SydneyAirport

On 4 September 2012 Tiger Announced theywere resuming flights from Melbourne toAdelaide, beginning from 1 November 2012

On 18 December 2012 Tiger will begin directreturn flights from Mackay to Melbourne andMackay to Sydney


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Impulse Airlines was anindependent airline in Australia which operated

regional and low cost services between 1994and 2001.

It was acquired by Qantas in 2001 and laterbecame Qantas' low-cost airline named asJetstar.


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Impulse Airlines was established andstarted operations in 1992. Impulse

Airlines was based in Newcastle.

The Airline's Managing Director was GerryMcGowan until the McGowan family sold

the airline to Qantas in 2001.


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In June 2000 the airlineacquired Boeing717 jet aircraft andcommenced operationsas a low-cost airline on

Australia's easternroutes in directcompetitionwith Qantas and Ansett


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In April 2001 Impulse and Qantas came toan agreement where Impulse would wetlease all their services to Qantas

Qantas would market the routes and giveImpulse a cash injection

Qantas would have a further option to buyout the Impulse Airline


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Impulse Airlines ceased operations on 24May 2004

It was used as a vehicle upon which Qantas'low-cost airline Jetstar was launched

Jetstar started operations on 25 May 2004.

Consequently, the Impulse brand wasreplaced with Jetstar


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Jetstar Airways is an Australian low-costairline headquartered in Melbourne, Australia

It is a subsidiary of Qantas, created in response to thethreat posed by low-cost airline Virgin Blue (nowknown as Virgin Australia)

The airline operates an extensive domestic network as

well as regional and international services from itsmain base at Melbourne

The airline was established by Qantas in 2003 as a

low-cost domestic subsidiary
http://en.wikipedia.org/wiki/Melbourne_Airporthttp://en.wikipedia.org/wiki/Melbourne_Airport


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Parent company Qantas also has stakes in sistercompanies Jetstar Asia Airways1. Valuair in Singapore

2. Jetstar Pacific Airlines in Vietnam

3. New upcoming carriers in Asia Jetstar Japan and Jetstar Hong Kong


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Jetstar commenced international long haul flying in

November 2006

Jetstar is currently the third largest domestic Australianairline (by market share) and fifth largest internationalairline (by capacity share) serving international routes to-and-from Australia.

In the first half of the 2012 financial year (July toDecember 2011) Jetstars Australian domestic operationscarried 5.4 million people


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Both Tiger Airways Singapore and TigerAirways Australia are also major competitorsto Jetstar in the low-cost market

Jetstar shares its parent's strong competitionwith Australia's biggest low-cost carrier VirginAustralia

Jetstar provides employment to around 3,000people in Australia.


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On 4 October 2006, Jetstar became the firstAustralian airline to allow customers to select theirseat upon booking

In November 2011, Jetstar became the first airlineto offer passengers iPads which are pre-loadedwith movies, games and magazines, on flights overtwo hours duration

Aircraft have seat back entertainment screens

On all domestic routes Jetstar has a buy onboard single class service offering food and drinksfor purchase


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On international routes, Jetstar offers atwo-class service

For Business class Passengers, service isinclusive of all meals and beverages, in-flight entertainment, and includes anincreased baggage allowance of 30 kg

Economy Class Jetstar offers either pre-purchased meals on board or buy onboard service with food and beverages


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Jetstar has been the undisputed low cost leader in recent times.


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Virgin Blue Airlines, now known as VirginAustralia Airlines, is Australia's second-largestairline

Virgin Australia was launched as Virgin Blue inAugust 2000, with two aircraft, one leased fromthen-sister airline with single route

After one year the airline has grown to directly

serve 29 cities in Australia from hubsin Brisbane, Sydney and Melbourne, using a fleetof narrow-body Boeing and Embraer jets; and

Airbus and Boeing wide-body jets.


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After several years operating as a low-cost carrier it improvedits services to become a so-called (self-described) "new worldcarrier" essentially a business model with aspects of the "nofrills" approach of low-cost carriers but offering services morein line with full-service airlines

Virgin Blue previously used a familiar formula pioneered byairlines such as Southwest Airlines and Ryanair eliminatingcosts such as included in-flight meals and printed tickets infavour of selling food on-board and using telephone andinternet booking systems

It also cut costs in the past by limiting the number of airportsserviced and by operating one type of aircraft, the Boeing 737


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Virgin Blue gained extrarevenue (and publicity)by painting two aircraftas "flying billboards".

One promoted a brandof men's razor, theother a QueenslandGovernment campaign

to attract businessesto the state


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In February 2007, Virgin Blue signed atwo-year sponsorship deal with NRL teamthe South Sydney Rabbitohs

Virgin Australia is also the official sponsorof the National Basketball League (NBL)


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In 2008, Premium Economy Class wasintroduced throughout its entire fleet

The premium product offered priority check-

in, larger baggage allowance, lounge access,priority boarding, increased legroom and all-inclusive in flight entertainment and meals orbeverages on board

The product was aimed at business andcorporate customers


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To capture a share of the business travellermarket, Virgin decided to provide a members'lounge facility for travellers. Originally this wascalled The Blue Room and provided facilities to

members and guests on a pay-as-you-go basis In 2006, Virgin revamped the lounge facilities and

re-launched the product as The Lounge, whichoffered all-inclusive facilities on a membership fee

or casual fee basis. Upgraded facilities providedincluded buffet food and refreshments,newspapers, showers, computers,and WiFi internet access for travellers.


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In December 2006, VirginAustralia announced apartnership between

Australian cable televisionproviders Foxtel and Austa

r, to introduce a "Live2Air"service on most flights bymid 2007. The Live2Airsystem is only available onselected Boeing 737aircraft, and is in theprocess of being phasedout


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Fleet of Virgin Blue Airlines compromisedof

Airbus A330-200.. 5 Boeing 737-700 4

Boeing 737-800 59

Boeing 777-300ER.. 5 Embrear E-190AR... 18


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Most of the practices that are being implemented in the AustralianLCCs, can be practiced in the Pakistans environment

The LCCs in Australia preferred to use airports with less servicecharges, the same should be practiced in Pakistan, i.e. using

secondary airports

Differentiation strategies that should be adopted include introducingthe concept of more than single class, like introducing PremiumEconomy class

Another strategy that should be adopted is providing in-flight mealsand lounge services on demand with additional charges


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lccs of australia

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