Conducting Research Study on Low-Cost Airlines and Airports

The assignment content revolves around data analysis, limitations, time scale, and references. The research will adopt a qualitative approach to analyze the data collected from customers through open-ended interview questions. A Gantt chart outlines the duration of all activities related to the research, which includes identifying the problem, systematic analysis, choosing the research topic, conducting literature review, setting objectives, collecting primary data, organizing collected data, applying suitable techniques to analyze data, interpreting the findings, and submitting the report. The references provided include books and journals that discuss topics such as airline industry, low-cost airlines, airport facilities, and market power.

RESEARCH PROPOSAL

TABLE OF CONTENTS
RESEARCH TITLE........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Rationale of the study..................................................................................................................2
Research Aim and Objectives......................................................................................................2
LITERATURE REVIEW................................................................................................................3
Brief History related to Low Cost Carriers..................................................................................3
RESEARCH METHODOLOGY....................................................................................................4
LIMITATIONS................................................................................................................................5
TIME SCALE..................................................................................................................................6
References........................................................................................................................................8

RESEARCH TITLE
The purpose of this research is to analyse the future of the low cost airlines in the aviation
sector-An industry analysis in global perspective.
INTRODUCTION
According to Forgas, Moliner and Palau, (2010), Air transport has always been
considered as a very special sector within the international context. It facilitates growth in
economic and social areas. The domestic as well as international tourism is gaining huge
popularity due to air transport. This sector has played a dominant role in the process of
globalization. In the year 2008, US$ 535 billion was generated as compared to US$ 307 in 2001.
This growth has been further driven by practices like market deregulation and open skies
agreement. Deregulation nurtured the growth of LCC (Low Cost Carriers) in the domestic
markets around the world (Kim and Lee, 2011). This concept was started in the seventies by an
American domestic carrier named southwest. It was done with the purpose of offering cheap
airfares for the consumers. This created a scenario where already established flag ship carriers
starting losing their market share in comparison to these LCCs.
Currently, this mode of transport has become very popular for lower to middle income
families. After the deregulation, these carriers have broken the hold of legacy carries on the
aviation industry (Hares, Dickinson and Wilkes, 2010). When it came to flying, only big size
airlines were given the priority but now people have started liking LCCs. It has become a very
preferred choice for short haul travellers. Today, these carriers are facing the same skies and
issues as faced by the big airlines. A list of setbacks has been created which can scare away any
new entrant in the industry (Clausen, Larsen and Rezanova, 2010). In that context, it is essential
to analyse the industry, to understand its strengths, weaknesses, opportunities and threats so that
it can be identified what the future holds for Low Cost Carriers.
The main objective of this research is to predict the survival of low cost airlines and to
discover the future growth options for LCCs. It will also identify the success, failure and survival
factors in the low cost airline industry.
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Rationale of the study
There are number of issues which could have influence the effectiveness of Low Cost
Carriers in long haul markets in negative manner. There is much debate going on how significant
reduction in prices can be offered considering the high costs of flying between several routes. If
these carriers plan for the expansion, there is an increasing probability that they will be entering
into a very highly competitive market. In this way it could be difficult for them to achieve such
cost effectiveness within their business operations. There can be so many obstacles to face. So
there is a need to investigate the challenges that are to be faced by the Low Cost Carriers. The
purpose of this report is to analyse the current state and the future of these firms in the aviation
sector. An attempt will be made to find out the measures how these carriers can survive their
survival in the coming years.
Research Aim and Objectives
The major aim of this research is to predict the survival of Low Cost Carriers (airlines)
and to identify the future growth options. Following objectives have been laid down:
 To examine the brief history related to the low cost airlines
 To investigate the current state and the future prospectus for LCCs
 To identify the market and environmental factors affecting the survival of LCCs
 To investigate the challenges faced by these carriers in the industry
Research Questions
Following research questions have been developed for the study:
 How Low Cost Carriers can survive their survival and growth in future?
 What are challenges which can put restrictions on their growth in future?
 What are the success, failure and survival factors for LCCs in airline industry?
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LITERATURE REVIEW
Brief History related to Low Cost Carriers
North America
According to Torlak, Sevkli and Zaim, (2011), the transformation of the low cost concept
in U.S can only be described as a series of innovations, consolidations and proliferations. It
began when deregulation started in 1970. Under this period many low cost airlines such as
Pacific Southwest, New York Air, Jet America, etc entered into the market. Among them some
survived the competition and other did not. Due to this, major carriers started their own
subsidiaries under the low cost banner for the purpose of regaining the lost market share.
Europe
According to Yu, (2012), in Europe, the concept of LCCs was initiated in UK and Ireland
in 1995. At that time, companies like easyJet and Ryanair came into the market.Their success
was recognized through economic framework which encouraged the low cost airline industry.
For instance, According to Kim and Lee, (2011), deregulation provides the opportunity to
airlines of member states to operate domestically within the European Union. Further, low
charges at underused airports increased the number of passengers going into those airports
(Ciliberto and Williams, 2010). The direct sales approach on the basis of internet and call centres
also encouraged the growth of Low Cost Carriers.
Challenges faced by Low Cost Airlines
Following are the challenges faced by the Low Cost Airlines:
 Survival – According to Rafatullah, Sulaiman and Ahmad, (2010), it is quite difficult for
Low Cost Airlines to survive in the aviation industry due to presence of bigger brands
and large size airlines. They are required to compete on a large scale but with existing
capacities. It is difficult to establish a presence in front of such big players in the industry.
 Low brand image – According to Ali, Asim and Khan, (2012), another issue faced by
LCCs is lack of brand image among passengers. People prefer to travel with a brand
instead of such airlines. It is because; there is no such high awareness and people are not
familiar with LCCs. Hence, it becomes difficult for them to establish connection with that
brand.
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 High maintenance costs – According to Hares, Dickinson and Wilkes, (2010), one of the
biggest issues faced by LCCs is the high maintenance cost related to airlines. The costs of
operations are very high in the industry. It may be difficult for LCCs to afford such high
costs.
 Infrastructure – According to Kim and Lee (2011), usually, it has been seen that big
players operating in aviation industry are having a very dynamic infrastructure for their
flights. This can be difficult to be afforded by the low cost airlines.
RESEARCH METHODOLOGY
The current report focuses on analysing the survival and future growth options of Low
Cost Carriers in the aviation sector (Goddard and Melville, 2004). This section of dissertation
deals with outlining the research designs and approaches which will helps in attaining the
research aim. It involves the use of theories and concepts which will help in reaching to a strong
conclusion.
Research Design
Research design refers to the overall strategy chosen by the researcher in order to
integrate various components of the study in a logical way. This helps the researcher in analysing
research problems in logical way thus seeking the effective solution (Kuada, 2012). Present
study focuses on exploring the valid reasons and impact of choosing the present topic. Thus,
explorative research design will be adopted in order to gain the objective of the research
efficiently.
Data Collection methods
This is one of the most significant parts of research analysing and methodology where the
researcher seeks effective measures to collect valid and reliable data to gain the proper insight of
the topic and issues concerned with the same. Primary and secondary method of data collection
is the common measures chosen for the study (Saunders and et. al., 2009). Present study will
adopt both primary and secondary source of data collection.
Primary data will be collected from 30 employees of Ryanair airline which is a Low Cost
Carrier in Europe. It will be collected through questionnaire technique. It is a semi-structured
questionnaire consisting of both open ended as well as close ended questions. It is appropriate
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because it helps in collecting authentic and adequate volume of data. While on the other side,
secondary data will be compiled through books, journals, newspapers, internet etc. Moreover,
industry reports and past data of the company will also be collected for analysis.
Sampling
Sampling is a method in which population of the study gets divided into small number so
that data collection can be done in effectual manner. It focuses on selecting a sample from vast
population within the market in order to create an effective impact on the study. The validity and
reliability of data helps in acquiring effective results for the given study (Kuada, 2012). For the
present study non probabilistic sampling will be adopted in order to choose a convenient set of
sample. It is appropriate because it helps in collecting the data on the basis of the subject and
requirement of the research
Data Analysis
Data analysis adopts qualitative and quantitative techniques to attain the set results. This
helps in simplifying the data in the desired format which helps in attaining the aim of the study.
The present study will adopt qualitative technique to analyse the data because open ended
interview questions will provide the data in form of individual perspectives of the respondents
(Saunders and et. al., 2009). This will thus be analysed and represented in thematic form to avail
the set objectives for the research. Different themes or patterns will be constructed to structure
the research in a well-developed way and to gain effective results.
LIMITATIONS
Following are the factors that count in the limitation of this study:
 Limited resource availability may restrict the availability of data
 Research will demand high cost which will result in limiting the research prospects
within preferred cost
 Limited time frame
 Limited data sample data will result in low data availability
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TIME SCALE
The duration of all activities related with the research is presented with the help of
following Gantt chart.
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11 12
 Identifying the problem
 Systematic analysis to choose
the topic for study
 Choosing the research
 Conducting literature review
for secondary data collection
 Setting the objectives
 Primary data collected from
customers
 Identifying research approach
 Designing research
methodology
 Preparation of structured
questionnaire
 Filling up the questionnaire
from customers
 Organizing collected data in
excel sheets
 Applying suitable technique to
analyze data
 Interpretation of the data
 Evaluation and findings of the
research
 Recommendations and
suggestions for further study
 Outlining the findings chapter
 Creating report in a
presentable manner
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 Submission to instructor and
awaiting for the feedback
 Revising the final draft
 Submitting report
 Presenting report to the
audience
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REFERENCES
Books and Journals
Ali, I., Asim, M. and Khan, T.A., 2012. Low cost adsorbents for the removal of organic
pollutants from wastewater. Journal of environmental management, 113, pp.170-183.
Ciliberto, F. and Williams, J. W., 2010. Limited access to airport facilities and market power in
the airline industry. Journal of Law and Economics. 53(3). pp. 467-495.
Clausen, J., Larsen, A. and Rezanova, N. J., 2010. Disruption management in the airline
industry—Concepts, models and methods.Computers & Operations Research. 37(5). pp.
809-821.
Forgas, S., Moliner, M. A. and Palau, R., 2010. Antecedents of airline passenger loyalty: Low-
cost versus traditional airlines. Journal of Air Transport Management. 16(4). pp. 229-233.
Goddard, W. and Melville, S., 2004.Research Methodology: An Introduction. Juta and Company
Ltd.
Hares, A., Dickinson, J. and Wilkes, K., 2010. Climate change and the air travel decisions of
UK tourists. Journal of Transport Geography. 18(3). pp. 466-473.
Hares, A., Dickinson, J. and Wilkes, K., 2010. Climate change and the air travel decisions of UK
tourists. Journal of Transport Geography. 18(3). pp.466-473.
Kim, Y. K. and Lee, H. R., 2011. Customer satisfaction using low cost carriers.Tourism
Management. 32(2). pp. 235-243.
Kuada, J., 2012. Research Methodology: A Project Guide for University Students. Samfunds
literature.
Rafatullah, M., Sulaiman, O. and Ahmad, A., 2010. Adsorption of methylene blue on low-cost
adsorbents: a review. Journal of hazardous materials, 177(1), pp.70-8
Saunders, M. et. al., 2009.Research Methods for Business Students, Harlow: Prentice Hall
Torlak, G., Sevkli, M. and Zaim, S., 2011. Analyzing business competition by using fuzzy
TOPSIS method: An example of Turkish domestic airline industry. Expert Systems with
Applications. 38(4), pp. 3396-3406.
Yu, G., 2012. Operations research in the airline industry. Springer Science & Business Media.
Online
The future of low-cost airlines and airports, 2015. [Online]. Available through: <
file:///C:/Users/user51/Downloads/141-377-1-PB.pdf/>. [Accessed on 29th October 2015].
Airport expansion: What happens next? 2015. [Online]. Available Through:
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<http://www.bbc.com/news/uk-19570653 >. [Accessed on 29th October 2015].
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