Aviation Strategy: Low Cost Carriers vs. Full Service Carriers, Boeing vs. Airbus, Gulf Cooperation Council vs. Asia Pacific & Europe

Running Head: Aviation Strategy
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Aviation Strategy
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Student Name
3/4/2019

Aviation Strategy
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Low Cost Carriers vs. Full Service Carriers
The objective of the study is to analyze the low cost carrier and full service carrier strategy,
finding out their long term effect and choosing the most appropriate strategy for future growth
and gaining the market segment.
Low Cost Carriers
The airlines which provide point to point transportation without including any frills such as
meals and luggage charges are considered as low cost carriers (Papatheodorou, et al., 2010).
There are many benefits in adopting this strategy as it captures the price conscious customers
so market share will increase, low operating cost and more scope of expansion by increasing
number of flights for short routes. Some of the weakness faces by the airline are low quality
services, low cost flight infrastructure and non-targeted business professionals segment in the
market.
In long term, low cost airlines will capture more target market but also face problem like
customer dissatisfaction, safety issues and low profitability. Low cot carriers are in growth
nowadays and attracting large number of middle class people towards air traffic but companies
operating in this strategy will face problems in near future related to profitability and
satisfaction of the customers it only makes air transport cheaper but not comfortable and safer
(Akamavi, et al., 2015).
By operating low cost airlines the key indicators which help in measuring the performance are
Average fuel consumption, Average revenue per passenger, Price of ticket, cost per flight and
staff cost per passengers. All these parameters should be considered while going for low cost
carrier strategy.
Full Service Carriers
When all the services without being charged such as baggage, meals and on time hassle free
flights are provided to passengers in ticket fare is considered as full service carriers. It is a kind
of strategy by which consumer get higher level of services and more features Full services
airlines mainly fly to primary airports in major cities rather than serving secondary airports with
lower cost and accessibility (O'Connell & Williams, 2011).
The comfort level for long haul in full service airlines is the biggest advantage as they offer
proper and bigger plane infrastructure with additional things to the passengers to make them
experience the luxury of the air transportation (Koklic, et al., 2017). High Fuel cost, taxes and

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airport charges are some of the challenges faced by Full Service Carriers as they offer long run
haul and frill benefits to customers which increases their operating cost.
In conclusion, most of the customers preferred to pay extra charges by not compromising with
the facilities provided by full service carriers. The strategy opted by the company for long term
growth should be the full service carriers because it captures the upper market segment and
result to higher satisfaction of the consumers which reduces the chances of any conflicts in
future. Another reason to opt for this strategy is that it gives high profitability to the business in
long run without compromising with the standards that they already delivered. Full service
airline is most suitable for business class people who want to make their trip memorable and
comfortable for long haul. The main advantage of it is that the connectivity to primary and
bigger airports which attract large traffic than secondary airports.
Boeing vs. Airbus
The objective of the study is to know about the product positioning of both the companies and
to choose which will give long term benefits to the customers with durability, reliability, safety,
technology advancement and innovation.
Boeing
Boeing is the leading aerospace manufacturing company, operates and support airlines in more
than 150 countries globally by offering customized products. Boeing offer wide range of
products to its customers for long haul, short haul, domestic routes, international route and
satellite network services which helps the company in taking competitive advantage in the
market. Another strategy followed by the company is its existence in capital services for
keeping and financing the customer purchases as well as leasing option makes the business
model of Boeing sustainable and competitive (Banham, 2015).
The key performance indicators that should be keep in mind while buying a new plane from
Boeing includes two criteria; capacity and distance. The customers who provide full service
carrier mainly choose this company to buy aircrafts because of Boeing 777 families product that
have both advanced fuel loads for a very long distance travel and greater capacity than other
planes in the market (Petrescu, 2017).
Airbus
Airbus is the aircraft maker and designer, supplying to the nations globally with 11 production
sites across the globe and become a leading player in the aviation industry making air
transportation automated and less costly (Simons, 2014).