Market Structure of Low-Cost Airlines

This assignment analyzes the market structure of various low-cost airlines, including EasyJet, Ryanair, Wizz Air, Thomas Cook, and JET2. It examines their cost structures, pricing strategies, competitive advantages, and market positioning within the industry. The report highlights the impact of factors like fuel costs, customer demand, and online booking on these airlines' operations.

MARKET
STRUCTURE: FOR
LOW COST AIRLINE

Table of Contents
INTRODUCTION...........................................................................................................................1
Market structure of various airlines companies..........................................................................1
CONCLUSION................................................................................................................................2
REFERENCES ..............................................................................................................................3

INTRODUCTION
This report is formed to elaborate the Market structure for low cost airline. There is a
market structure of easy Jet, WIZZ air, ryanair, Thomas Cook and JET2. How different market
strategies and pricing strategies helps to get competitive advantages (Cost structure of low cost
airline industries, 2018). This report is divided in two parts, first part defines market structure of
low cost airline and second part is a contains conclusive overview of report.
Market structure of various airlines companies
Easy Jet
Easy Jet is containing a strong market position and capital share in Europe airline
industry. Legacy airports, charter carriers are the main competitor of easy Jet company. Its cost
structure is made around affordable charges and fares to customers. Pricing strategies are made
around middle class and average income group customers. It is confident enough to bear the
competitive advantage. It recorded 9% annual growth in respect of increasing number of
customer and airline network. due to its enchanting customer proposal. It increased the amount
of air fare and charges in the year 2016 by 2.0% due to increase in fuel. It effected approx £112
million impact of foreign exchange and cost per unit get increased by 1.1%.
Ryanair
This is one of the airline industry which is emerging every year. It focused upon the
amount of scrapped exhausted by daily consumption. After the low cost airline it had to cancel
more than two thousand flights and passengers had to face problems due to cost cutting and low
budget facilities. It changed its cost structure and adapted liberal operator to run the operations
smoothly. After the change company get positive results in the form of increased amount of sales
Wizz air
This airline company gives largest discounts on air tick booking. It has a string market
reputation and share in Eastern Europe. At first condition it controlled the market strategy in
respect of efficiency size. Company is flexible with its marketing strategies to keep prices at their
cheapest cost, options of seats, food and drinks, travel without printed tickets.
Thomas cook
Company is brand name in the UK. Company is focused upon low price leadership.
Company is operating £28 million media pitch to build brand image and brand positioning in
airline industry.
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JET 2
This airline industry uses the internet marketing to operate its operations. It gives
discounts to its customers if the book tickets though internet or online booking sites. At present
company is eligible to sell 90% of air ticket though online bookings. Its aircraft are considered as
environment friendly (Carvalho, Marques and Berg, 2012). It has B757-200s structure with
provides wide range of 3500nm to divert the cost in effective manner.
CONCLUSION
As per the above report is focus on market size on the lower cost is to be airlines are
continuous increase in market. In this context dialogue power of customers are higher as they are
having many options available from where they can purchase ticket such as internet sources and
on the other hand the bargaining power of suppliers are low. In this report is organisation is to be
focus on the income group of the customer.
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REFERENCES
Books and Journals:
Baldwin, W. and Scott, J., 2013.Market structure and technological change (Vol. 18). Taylor &
Francis.
Carvalho, P., Marques, R.C. and Berg, S., 2012. A meta-regression analysis of benchmarking
studies on water utilities market structure. Utilities Policy.21. pp.40-49.
Online
Cost structure of low cost airline industries, 2018. [Online]. Available through:
<http://www.eurocontrol.int/news/rapid-rise-low-cost-carriers>.
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