Airline Company | Market Analysis
MARKET ANALYSIS
Global Airline Industry
Major Airlines Characteristics:
Focus on hubs
In order to increase load factors, major airlines have adopted a hub and spoke strategy which consists of centralising flights at an airport therefore benefiting from connecting passengers in addition to origination and destination passengers. As a result of this strategy, many passengers are forced to make stopovers, increasing their travelling time.
SkyTrails will offer point to point services which offer significant time savings for premium passengers.
High fixed costs
Major airlines have large overhead costs and many are tied in to labour contracts which prevent them from reducing these costs significantly.
SkyTrails will maintain a lower cost base and therefore maintain a competitive advantage.
Lack of customer focus
Overall, airlines tend to lack customer focus. By focusing on hubs and...
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