Yes / Low cost carriers (budget airlines) have a significant share of the air travel market, but little research has been done to understand the distributional effect of their operation on key tourism indicators such as length of stay and expenditure. Using data on European visitors to the United Kingdom we demonstrate how counterfactual decompositions can inform us of the true impact of mode of travel. Passengers on low cost carriers tend to spend less, particularly at the upper end of the distribution. Budget airline users typically stay longer, though differences in characteristics of observed groups are important to this result. Counterfactual techniques provide additional valuable insights not obtained from conventional econometric models used in the literature. Illustrating an application of the methodology to policy we demonstrate that enabling respondents to extend their stay generates the greatest additional expenditure at the lower end of the distribution. We also show nationality is a significant characteristic, with important impacts across the expenditure distribution.

The Southwest Airlines created the low-cost airline business model in 1970s, after aviation liberalization and opening up policies in the U.S. and European, the booming of low-cost airlines. This makes the people who didn¡¦t use aircraft in the past began to take air travel. Many secondary airports in the area caused the travelers a lot of growth by low-cost airlines flight, and promote the region¡¦s tourism, economy and employment opportunities. In view of this, started the study idea of the influence of low-cost carriers on air travel related industry in Taiwan. The Asia¡¦s largest low-cost airline ¡V AirAsia is the subject of this study. Historical data on the low-cost carriers business were collected. Questions for conducting in-depth interviews with experts in air travel industries were devised from the study of these historical data. In addition, a survey of government¡¦s air, tourism data, the influence of low-cost carriers on air travel related industry was developed finally. The results show, the AirAsia to open Taipei route, on the Taoyuan International Airport, retail, hotels and other travel related industries have brought real benefits. The home base of AirAsia is Malaysia, which people came to Taiwan to engage in substantial growth in tourist numbers and to create a substantial growth in tourism foreign exchange earnings. Finally, the results of this study were compared with historical data. It is hope that the results would be able to provide any other countries planning to develop low-cost carriers, some practical reference in planning their air and tourism industries strategies.

Since the 1980s, companies have taken a larger interest in quality and it´s economic impact within the company. Having the knowledge that it´s not quality that costs money, but it´s rather the lack of quality. The work immerses itself in the field of cost of poor quality and the development of key performance indicators. The thesis is performed at Bufab Holding in Värnamo. Bufab Holding is a trading company which mainly buys and sells C-parts. C-parts include fasteners, other small metal-, rubber- or plastic parts such as wires, springs and electronic fasteners. The aim of this thesis was to make a survey of the cost of poor quality and to find key performance indicators (KPI) for cost of poor quality that can be continuously monitored. This work can serve as a basis for other companies within the Bufab group if the company believes that the content of the report can be used. With this aim two issues was created. What is the cost of poor quality that are linked to Bufabs complaints today, and where do they occur? Which key performance indicators can be created, which continuously can be monitored? The work began with a literature study to gain a deeper understanding of the cost of poor quality and the creation of KPI´s. The literature led the writers of this thesis into the methods that were used. Through the data collection, document gathering and given interviews an understanding of the company´s current economic situation. On this basis the company´s claims and processes where analysed with the help of "Seven quality tools". With the help of the piece cost model cost barriers was prepared and the cost of poor quality was calculated. Furthermore KPI´s was created through Lars Sörqvists description of ratio. The cost carriers differed depending on whether it was Bufab who caused the error, if it was a wrong product quality claim or if it was the supplier who caused the error. The cost of poor quality totaled of 4,7 Mkr. The pareto chart shows that the cause wrong product quality caused the highest costs. The costs of poor quality that where calculated mostly consisted of different labor costs. One of the KPI´s was based on labor cost and the other was based on total costs. Furthermore KPI´s where made of the number of complaints with the base of total number of order lines that have been sent. The company can then use this result to show how good quality the company have when new contracts are negotiated. If the methodology and results are promising, this thesis can be a working model for more companies within the Bufab group. Not all visible costs of poor quality was calculated in this thesis due a lack of time. The thesis also lacks entirely an assessment of the hidden costs of poor quality.

While 3.3 billion people flew worldwide in 2014 a large number of these were from developed countries. It is emerging countries which offer the greatest potential for future air traffic growth, with forecasts suggesting that 7.3 billion people will fly by 2034. The greatest proportion of this traffic will be in the Asia-Pacific region where there is already high low-cost carrier penetration. Given increasing price-based competition within short-haul markets, there are many significant challenges in terms of how Asian network airlines respond to LCC competition, and a popular response is the use of low-cost subsidiaries. Thus, the aims of this research are to establish the sources of competitive advantage of Asian airlines generally, and to examine the competitive responses of Asian network airlines and the strategic capabilities of them in competing with low-cost carriers, with a particular focus upon the use of low-cost subsidiaries. This research is underpinned with competitive advantage theory, particularly the resource-based view which concerns the internal environment of firms where each firm possesses a collection of unique resources and capabilities that provide the foundation for competitive strategy. For this research, data were collected from 49 senior airline management personnel using questionnaire surveys, resource surveys, and semi-structured interviews. The data were then analysed using VRIN analysis, the importance and difficulty of 37 competitive responses, strategic capability analysis, and the product and organisational architecture model. The results found that both a strong strategy and stable leadership are crucial. The strategies of Asian network airlines must be flexible to respond appropriately to competitive threats as they materialise, with this responsiveness contributing to the attainment of competitive advantage. Out of an analysed 36 intangible resources, the top resources for competitive advantage and responding to competitive threats for Asian airlines generally are slots, brand, and product and service reputation, with the importance of these based more on being hard to copy than valuable. Each analysed airline business model has a relatively distinct core bundle of intangible resources which explains the internal sources of their competitive advantage. The need for Asian network airlines to strengthen their competitive advantage and their ability to compete is because low-cost carriers impact them in many ways, most notably through a reduction in market share and reduced yields given the key motivation of customers within short-haul markets and economy class is now price and value-for-money. Asian network airlines are most likely to respond to low-cost carriers if they focus upon their core markets, grow their market share, and target the core higher-yielding passengers on which network airlines rely. In such instances, Asian network airlines should respond by focusing more on their brands and meeting the needs of their core targeted market segments. There is a strong positive correlation between profit margin and the strategic capability to compete with low-cost carriers. Yet, Asian network airlines have relatively weak capabilities overall. While Vietnam Airlines, Malaysia Airlines, and Garuda Indonesia are reasonably well placed to compete, network airlines from Northeast Asia, in particular, must strengthen their capabilities especially as Japan, China, and Taiwan are witnessing fast low-cost carrier growth. However, the possession of a strong capability does not mean it is fully or properly leveraged. To compete more effectively with low-cost carriers, the most important competitive responses, based upon analysis of 37 responses, are the ability of management to quickly introduce changes, leveraging brand strength, and increasing aircraft utilisation. Based on the relationship between the importance and difficulty of responses, the most crucial responses for competitive advantage of Asian network airlines are reducing costs to within 30% of LCCs and increasing aircraft utilisation. If achieved, these should lead to meaningful sustained advantage. Low-cost subsidiaries are easier to implement than for network airlines to significantly reduce costs, change to one fleet, or reduce the use of direct distribution, which may explain their popularity within Asia and them being a borderline very essential competitive response. For network airlines, low-cost subsidiaries are a more effective way to compete with low-cost carriers, to participate in the growth of the budget segment, a means of operating uneconomic routes, and to remove unprofitable customers. Network airlines can then focus upon their core market segments and their core competencies. However, their creation is reactive and not proactive which undermines their effectiveness, likewise that low-cost subsidiaries suffer from poor profitability, higher costs, and much smaller size and scale than their key low-cost competitors. This research recommends that Asian network airlines strengthen their existing and primary sources of competitive advantage while pursuing new sources of advantage. While the strategic capabilities of Asian network airlines have strengthened over time, it is essential that they are further strengthened and fully acted upon given increasing competitiveness. The use of low-cost subsidiaries will continue, but it is crucial for themselves and their parent network airlines that they improve their ability to compete and thereby their performance.

Background: Since the airline deregulation was completed in 1997, a new business model has emerged in the European civil aviation industry. It has caused a shift in the way people travel within Europe. The airlines operating under this new business model known as point-to-point, have created a new outlet for commercial passenger travel and raised concerns for established flag carriers. Problem: This study is of great importance due to the fact that people are traveling more frequently and wish to do so quicker and more efficiently. With so many options to choose from and cost being an important decision maker for both companies and consumers, a study of this industry in terms of competition, price and service quality is of great impor-tance. Purpose: The purpose of this thesis is to investigate and describe whether or not changes in the competitive landscape of the European civil aviation industry are related to the movement of economy class prices. The thesis also looks at whether or not changes in the competitive landscape are related to changes in service quality in the same industry. Both flag-carriers and low-cost carriers in terms of their business models will be investigated. Method: The method chosen for this study was of an integrated approach based solely on secondary data due to the sheer size and scope of this industry. This study investigated the two major business models of this industry through routes to the major cities and capitals of Western Europe from Stockholm Arlanda airport and Stockholm Skavsta airport. A literature study coupled with a comparative analysis has also been done. Conclusions: Dramatic change is occurring in the industry. Competition is increasing not only between companies but between two competing business models. Increased competition is leading to better on-time performance but lower in-flight and ground service quality. Aggregate price level has risen for flag carries with the opposite happening for low-cost carriers. The increased competition is threatening the ill-performing flag carriers and will most likely transform the industry.

<p>Background: Since the airline deregulation was completed in 1997, a new business model has emerged in the European civil aviation industry. It has caused a shift in the way people travel within Europe. The airlines operating under this new business model known as point-to-point, have created a new outlet for commercial passenger travel and raised concerns for established flag carriers.</p><p>Problem: This study is of great importance due to the fact that people are traveling more frequently and wish to do so quicker and more efficiently. With so many options to choose from and cost being an important decision maker for both companies and consumers, a study of this industry in terms of competition, price and service quality is of great impor-tance.</p><p>Purpose: The purpose of this thesis is to investigate and describe whether or not changes in the competitive landscape of the European civil aviation industry are related to the movement of economy class prices. The thesis also looks at whether or not changes in the competitive landscape are related to changes in service quality in the same industry. Both flag-carriers and low-cost carriers in terms of their business models will be investigated.</p><p>Method: The method chosen for this study was of an integrated approach based solely on secondary data due to the sheer size and scope of this industry. This study investigated the two major business models of this industry through routes to the major cities and capitals of Western Europe from Stockholm Arlanda airport and Stockholm Skavsta airport. A literature study coupled with a comparative analysis has also been done.</p><p>Conclusions: Dramatic change is occurring in the industry. Competition is increasing not only between companies but between two competing business models. Increased competition is leading to better on-time performance but lower in-flight and ground service quality. Aggregate price level has risen for flag carries with the opposite happening for low-cost carriers. The increased competition is threatening the ill-performing flag carriers and will most likely transform the industry.</p>

abstract: In 2004 the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia joined the European Union (EU) as part of the EU's greatest enlargement to date. These countries were followed by Bulgaria and Romania in 2007. One benefit of joining the EU was the freedom for residents in the new EU member states to migrate to western European nations, notably the United Kingdom (UK). A result of this new freedom was an increased need for air travel. The intersection of the expansion of the EU with the introduction of low-cost airline service was the topic addressed in this study. Yearly traffic statistics obtained from the UK Civil Aviation Authority were used to formulate a trend line of passenger volume growth from 1990 to 2003. Through a time series regression analysis, a confidence interval was calculated that established that, beginning with the year 2004, passenger volumes exceeded the probable margin of error, despite flat population growth. Low-cost carriers responded to these market conditions through the introduction of new flights across the region. These carriers modeled themselves after Southwest Airlines, a strategy that appeared to be more effective at meeting the needs of the post-accession travel boom. The result was a dramatic rise in both passenger volumes and low-cost airline routes in an east-west direction across the continent. / Dissertation/Thesis / M.S.Tech Technology 2012

No description available.

This thesis is divided into 5 chapters. In the fist chapter is generally described marketing of services and contemporary situation of air transport on the Czech market. Next chapters discuss the history, SWOT analysis and marketing strategies of low cost carriers, Lufthansa and ČSA. In the last, fifth chapter, is accomplished the comparison of the above-mentioned airlines according to their marketing strategies and Skytrax Research and is forshown the future development.

Over the past 20 years, there were several low-cost airlines identified as the most successful airlines in Europe according to the number of transported passengers. Theoretical part of the thesis has several objectives. It is an analysis of the airlines success it selves as well as an analysis of their gradual development in low cost air travel within Europe and description of the low-cost aviation market in Europe in terms of the history and competitiveness. The practical part which is the main objective of the thesis is an overall analysis of the differences in business models of low-cost carriers and the impact of these differences on the development of their economic and operational performance.