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Low Cost Long-Haul Airlines in the Middle East

   

Added on  2020-01-16

10 Pages3097 Words385 Views
The successfulness of low-cost long-haul carriers and how to apply it in the Middle East

Table of ContentsProject background................................................................................................................................2Aims......................................................................................................................................................3Objectives..............................................................................................................................................3Project deliverables...............................................................................................................................3Research questions................................................................................................................................3Literature scope.....................................................................................................................................4Methodology.........................................................................................................................................6Data.......................................................................................................................................................7Discussion.............................................................................................................................................8References.............................................................................................................................................9List of figureFigure 1: Top 15 airlines low cost long haul carriers Abeyratne, (2013)...............................................61 | P a g e

Project backgroundThe term low cost long haul is not new for the aviation industry. In the past few decades,various organisation attempted to implement this business model for attaining higherrevenues and profitability. The idea of low cost long haul carriers is to provide attractiveoffers to the customers to enhance the market size of the airline company (Wittmer et al.,2011). In addition, the low cost long haul carriers has provided the cost advantage andcompetitive advantage to the various airline organisations such as Norwegian Air Shuttle andAirAsia X in the Middle East (Morrell, 2016). Along with this, the various organisations inthe United Kingdom such as British Airways and Virgin Atlantic have been including thisnew business model in the firm’s strategy for attaining higher revenues and customer loyaltyaround the world. The notion of low cost long haul carriers has become very popular among the aviationindustry. The Laker Airways of the United Kingdom has stated to implement the low costlong haul carriers for gaining higher revenues. However, due to several reasons such asshortage of seats and no advance booking services, the airline company has to bear a lot ofdecrement in the revenues (Morrell, 2016). Therefore, this case of Laker Airways becomes anexample of unsuccessfulness of low cost long haul carrier services for the aviation industry.Apart from this, the development of technology and increment in the resources has becomesome of the factors, which has provided success to the low cost long haul business model.The effectives of this business model can be observed from the increasing profitability ofRyanair, Spirit, Cebu Pacific and many other firms that has implemented low cost long haulcarrier services for their customers.In addition, various researchers have depicted that the airline organisations could attainonly 20% of cost advantage over the network coverage (Papatheodorou, 2016). However, thelow cost long haul are provided by the organisations to improve their market share and attractmore customers towards the services of the company.On the other hand, various scholars hasclaimed that the business model of low cost long haul carriers failed in the previous years dueto lack of management and necessary financial resources. Therefore, it is analysed that theprevious researches on the successfulness of low cost long haul carriers fails to analyse theeffectiveness of this business model. Hence, this research proposal aims to evaluate thesuccessfulness of low cost long haul carriers (Morrell, 2016). In addition, this researchproposal aims to identify methods, which could aid in implementing this business model inthe Middle East. 2 | P a g e

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