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Impact of Low Cost Long-haul Carriers in Middle East- Report

   

Added on  2020-02-03

16 Pages4739 Words27 Views
The successfulness of low-cost long-haulcarriers and how to apply it in the MiddleEast

Table of ContentsCHAPTER – 3 LITERATURE REVIEW.......................................................................................3Overview.....................................................................................................................................3Background.................................................................................................................................33.1 Key success factors in airline industry in Middle east..........................................................33.2 Challenges for the low-cost long haul carriers......................................................................53.3 Successful of Norwegian and AirAsia on low-cost long haul routes....................................73.4 Factors directly attracting low-cost long haul airlines into Middle East Market..................83.5 Low-cost long-haul Market Segment....................................................................................93.6 Potential of low-cost long haul business model in Middle East Region.............................103.7 Impact of low cost long-haul carriers in Middle East.........................................................113.8 CONCLUSION...................................................................................................................12REFERENCES..............................................................................................................................13

CHAPTER – 3 LITERATURE REVIEWOverviewIn this section, the investigator will come to know about the depth study of the researchtopic. In this, the information is published in the way of secondary resources which will help toresearcher in collecting different data. This section is essential in collecting the data through theprevious research. With the help of different viewpoints of authors, it will beneficial to theinvestigator to conduct and analyse the proper research. The purpose of literature review is that ithelps investigator to identify the gap in current knowledge. It also helps to avoid reinventing thewheel by discovering various research on the topic. A low-cost carrier is that kind of airlinewhere there has a lower fares and few comforts. To earn the large amount of revenue thesecompanies are charging high price on food, baggage, priority boarding etc. There are manyauthors who have given the information in books, journals which is related with the field ofstudy. This section helps to researcher in creating the foundation of their topic by analysingdifferent viewpoints of authors. In this section key factors of airline industry have beendiscussed. The challenges which has been faced by them for the low cost long haul carriers isalso discussed and many more. Along with this, various outcome has also been derived from theprevious studies which helps in identifying the literature gap. In long haul, the services areprovided in business class, premium economic class. In present research report, key successfulfactors have been discussed which is based on the different viewpoints of authors. Along withthis there are some challenges which are faced by the low-cost long haul flights. The serviceswhich is provided by the Norwegian in which customer can enjoy the fewer services at lowercost. BackgroundThe services which are at low-cost long haul in Middle East which, include the nation ofArabian Gulf (Iran, Iraq, Qatar and many more). In this region, the airline companies are tryingto provide services at lower cost. Now a day, long Haul is in international aviation today whichhas been constrained within short-haul market. The airline industry is providing the new sourcesto customers in making the large amount of profits. There are many flights which is providingthese services at lower cost. In Middle East, it is essential to provide services at lower cost sothat the people can have good experience.

3.1 Key success factors in airline industry in Middle EastThe environment in which firms are operating their business is challenging for them. Forexample, these aviation industries facing the problem of globalisation, which has triggered toheighten the competition due to different firm’s regions. According to Button (2012), it isexamined that there are many strategies which has been used by the airline company in order tosatisfy the customer needs. For example, historical event of Norwegian air in 2010 the silver awarded and bronze isachioeved in Skytrax survey by providing the fair services. Through this consumer of MiddleEast will enjoy the services at reasonable cost. This was the first airline company who has offerthe services of WIFI broadband on European flights in year 2011. As per view of Chung andWhang (2011), it is reserved that airline industry has been accustomed in the term of low-costcarrier. The experts of this industry use this term in different manner such as low-cost no frillscarrier, less frills carrier and many more. There are many key success factors in which theseorganisations will compete in market for a long period of time. One of the success key factor isthat “Business Strategy”. The success factors have been guided by their vision, “Everyoneshould have right and afford to fly”. In short-term, the primary objective of this company is thatto provide the opportunity to those people who are not very much affordable to travel in flights.Through this, they are providing the high quality of experiences services at lower cost. For this,company is conducting proper market research in which they can identify the needs ofcustomers. First they are targeting those customers who are not able to afford these services.Some of the key success factors are differentiation, strong brand name, the sturdy relation withsupplier and many more. While travelling from place to another which cover long distance, areproviding few services at lower cost. Through this, customer base will also become strong. Asstated by Clewlow, Sussman and Balakrishnan (2014), it is inferred that the following are somepoints in which the airline of Middle East is attaining the success by following basic businessprinciples.The employees of these airline industry need to corporate with their organisation valueon priority basis which will help them to accomplish with their objectives. Second, their aim is to attract the customers by providing the operational excellence andhelpful services which should be at very low cost.

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