Upload
muhammad
View
233
Download
0
Embed Size (px)
Citation preview
7/30/2019 LCCs of Australia
1/59
7/30/2019 LCCs of Australia
2/59
Mohsin Azhar Shah BAM-9205
(Group Leader)
Saqib Mehmood BAM-9207
Saad Shoaib BAM-9210
Arslan Aslam BAM-9234
Ibrahim Tariq BAM-9239
7/30/2019 LCCs of Australia
3/59
Low Cost Carriers of Australia
7/30/2019 LCCs of Australia
4/59
Australia is a country, an island, and acontinent
It is the 6th largest country in the world
Australia is considered a developed nation
It has the world's thirteenth largest economy
It is known for a high life expectancy, itseducation, quality of life, biodiversity and
tourism
7/30/2019 LCCs of Australia
5/59
It is located in Southern Hemisphere between theIndian Ocean and the South Pacific Ocean
Its major cities are Brisbane, Sydney, Perth,
Melbourne, and Adelaide
Its Capital city is Canberra.
Population: 17.5 million
Australia is home to many animals like kangaroosand koalas, sharks and thousands of differenttypes of tropical fish
7/30/2019 LCCs of Australia
6/59
Compass Airlines (1990)
Impulse Airlines (1992) (Acquired by Qantas and rebranded as Jet Star)
Virgin Blue Airlines (2000) (Transitioned into a full-service airline, now known
as Virgin Australia)
Jet Star Airways (2003)
Tiger Airways Australia (2007)
7/30/2019 LCCs of Australia
7/59
LCC is a relatively new phenomenon firstemerged internationally in the 1980's as aconsequence of Airline Deregulation
Australia's first low cost airline, CompassAirlines, began operations in 1990, and
collapsed around a year later
7/30/2019 LCCs of Australia
8/59
Compass I was Australia's first low costairline. It was established afterderegulation of Australian Aviation industryin 1990
7/30/2019 LCCs of Australia
9/59
Compass Airlines, later referred toas Compass Mk Iwas founded and startedoperations in 1990 in Australia
Compass Mk I was established by BryanGrey, who had previously run regional
airline named East-West Airlines
7/30/2019 LCCs of Australia
10/59
At its peak Compass Mark I operated fiveleased Airbuses. Two of them were leased from Britishcharter carrier Monarch Airlines
Compass Mk I collapsed little more than a year after itsfirst flight, Due to:
1. Undercapitalization
2. Sustained fare discounting by the competitors andfailing to make use of its potential to also carry freight
3. Not provision of suitable facilities by government (adispute with the Govt.)
7/30/2019 LCCs of Australia
11/59
Compass Airlines initial operations werealso significantly disrupted by whatappeared to be a computer attack on theirreservation system
On 20 December 1991, Compass Airlines
was grounded
7/30/2019 LCCs of Australia
12/59
Compass Mk IAirbus A300B4-605R..4
Airbus A310-304.1
7/30/2019 LCCs of Australia
13/59
Compass Mk II was conceived as Southern CrossAirlines but chose to trade under the Compassbrand, which seemed to have popular support
It commenced operations in 1992 withfive McDonnell Douglas aircraft
It collapsed less than a year later in 1993
Southern Cross chairman Douglas Reid wasconvicted in 1997 of theft and false accountingamounting to $10 million in relation to the collapse.He received a record 10 year jail sentence
7/30/2019 LCCs of Australia
14/59
Compass Mk IIMcDonnellDouglas MD-82.3
McDonnell
Douglas MD-83.2
7/30/2019 LCCs of Australia
15/59
7/30/2019 LCCs of Australia
16/59
Tiger Airways AustraliaPty Ltd is a whollyowned subsidiaryof Tiger AirwaysHoldings Limited,
which is publicly listedon the SingaporeExchange
It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by SingaporeAirlines
7/30/2019 LCCs of Australia
17/59
It commenced services in the Australian
domestic airline market on 23 November2007
The airline is based in Melbourne, Victoria,
with its main base at Melbourne Airport
7/30/2019 LCCs of Australia
18/59
On 16 March 2007 Tiger Airways Australia Pty. Ltd.was incorporated in the Northern Territory,although the company is based in Melbourne,with Melbourne Airport being the airline's major
hub Five aircraft and A$10 million were committed to
start the subsidiary
Tiger Airways Australia's first scheduled flight wasTT 7402, which departed from Melbourne for theGold Coast on 23 November 2007
7/30/2019 LCCs of Australia
19/59
Australian government policy andlegislation currently permits airlines thatare 100% foreign-owned to operatedomestic airline services within the country
Australian international airlines are still
subject to ownership rules that limit foreignownership to 49%
7/30/2019 LCCs of Australia
20/59
Tiger undertook the final stage ofAustralian regulatory procedures on 20November 2007
Tiger received its Air Operator's Certificateon 22 November
7/30/2019 LCCs of Australia
21/59
The airline's business model is based onthat of sister airline Tiger Airways, whichattempts to increase the total market size(number of passengers), control operatingcosts, and maximize the number of sectorsserved
One way it planned to keep costs low wasby avoiding expensive airports
7/30/2019 LCCs of Australia
22/59
As of October 2012, the Tiger AirwaysAustralia fleet consists of the followingaircraft with an average age of 4.3 years
7/30/2019 LCCs of Australia
23/59
Tiger announced on 3 April 2009 theirintention to launch in the MelbourneSydney market, the fifth busiest passenger
route in the world, signaling an end to itsoperational policy of avoiding expensiveairports
7/30/2019 LCCs of Australia
24/59
The airlineprovides thefree Tiger
Tales in-flightmagazine anda buy onboard program
serving snacks,soft drinks, beerand wine forpurchase
7/30/2019 LCCs of Australia
25/59
The airline provides the free Tiger Talesin-flight magazine and a buy onboard program serving snacks, soft drinks,
beer and wine for purchase
In June 2010, Tiger implemented a"cashless cabin" environment, in that it
only accepted Visa or MasterCard foronboard purchases. This new method waslater dropped
7/30/2019 LCCs of Australia
26/59
The arrival of Tiger Airways Australia in themarket resulted in varied responses fromits primary competitors,
mainly Qantas (and its subsidiary Jet StarAirways) and Virgin Australia
Air fares began to drop as special offersand other promotions were launched
7/30/2019 LCCs of Australia
27/59
When Tiger released its first routeMelbourne to Darwinat a price of A$79.99,Jet Star immediately undercut the price,offering fares of A$79 on the same route over
the same period
When Tiger released its second route
Melbourne to Gold Coastat a price ofA$49.95, Jet Star again undercut the price,offering A$39 fares on the route over thesame period
7/30/2019 LCCs of Australia
28/59
Tiger Airways Australia celebrated its firstanniversary on 19 November 2008 with a"Free Seats" campaign, which resulted in
100,000 seats on sale, of which half soldout within the first few hours
The airline celebrated its second birthdayon 23 November 2009 with thousands ofseats on sale for A$2
7/30/2019 LCCs of Australia
29/59
On 7 March 2012, Tiger Airways announcedthat it will reopen a second base at SydneyAirport
On 4 September 2012 Tiger Announced theywere resuming flights from Melbourne toAdelaide, beginning from 1 November 2012
On 18 December 2012 Tiger will begin directreturn flights from Mackay to Melbourne andMackay to Sydney
7/30/2019 LCCs of Australia
30/59
7/30/2019 LCCs of Australia
31/59
Impulse Airlines was anindependent airline in Australia which operated
regional and low cost services between 1994and 2001.
It was acquired by Qantas in 2001 and laterbecame Qantas' low-cost airline named asJetstar.
7/30/2019 LCCs of Australia
32/59
Impulse Airlines was established andstarted operations in 1992. Impulse
Airlines was based in Newcastle.
The Airline's Managing Director was GerryMcGowan until the McGowan family sold
the airline to Qantas in 2001.
7/30/2019 LCCs of Australia
33/59
In June 2000 the airlineacquired Boeing717 jet aircraft andcommenced operationsas a low-cost airline on
Australia's easternroutes in directcompetitionwith Qantas and Ansett
7/30/2019 LCCs of Australia
34/59
In April 2001 Impulse and Qantas came toan agreement where Impulse would wetlease all their services to Qantas
Qantas would market the routes and giveImpulse a cash injection
Qantas would have a further option to buyout the Impulse Airline
7/30/2019 LCCs of Australia
35/59
Impulse Airlines ceased operations on 24May 2004
It was used as a vehicle upon which Qantas'low-cost airline Jetstar was launched
Jetstar started operations on 25 May 2004.
Consequently, the Impulse brand wasreplaced with Jetstar
7/30/2019 LCCs of Australia
36/59
7/30/2019 LCCs of Australia
37/59
7/30/2019 LCCs of Australia
38/59
Jetstar Airways is an Australian low-costairline headquartered in Melbourne, Australia
It is a subsidiary of Qantas, created in response to thethreat posed by low-cost airline Virgin Blue (nowknown as Virgin Australia)
The airline operates an extensive domestic network as
well as regional and international services from itsmain base at Melbourne
The airline was established by Qantas in 2003 as a
low-cost domestic subsidiary
http://en.wikipedia.org/wiki/Melbourne_Airporthttp://en.wikipedia.org/wiki/Melbourne_Airport7/30/2019 LCCs of Australia
39/59
Parent company Qantas also has stakes in sistercompanies Jetstar Asia Airways1. Valuair in Singapore
2. Jetstar Pacific Airlines in Vietnam
3. New upcoming carriers in Asia Jetstar Japan and Jetstar Hong Kong
7/30/2019 LCCs of Australia
40/59
Jetstar commenced international long haul flying in
November 2006
Jetstar is currently the third largest domestic Australianairline (by market share) and fifth largest internationalairline (by capacity share) serving international routes to-and-from Australia.
In the first half of the 2012 financial year (July toDecember 2011) Jetstars Australian domestic operationscarried 5.4 million people
7/30/2019 LCCs of Australia
41/59
Both Tiger Airways Singapore and TigerAirways Australia are also major competitorsto Jetstar in the low-cost market
Jetstar shares its parent's strong competitionwith Australia's biggest low-cost carrier VirginAustralia
Jetstar provides employment to around 3,000people in Australia.
7/30/2019 LCCs of Australia
42/59
7/30/2019 LCCs of Australia
43/59
7/30/2019 LCCs of Australia
44/59
7/30/2019 LCCs of Australia
45/59
On 4 October 2006, Jetstar became the firstAustralian airline to allow customers to select theirseat upon booking
In November 2011, Jetstar became the first airlineto offer passengers iPads which are pre-loadedwith movies, games and magazines, on flights overtwo hours duration
Aircraft have seat back entertainment screens
On all domestic routes Jetstar has a buy onboard single class service offering food and drinksfor purchase
7/30/2019 LCCs of Australia
46/59
On international routes, Jetstar offers atwo-class service
For Business class Passengers, service isinclusive of all meals and beverages, in-flight entertainment, and includes anincreased baggage allowance of 30 kg
Economy Class Jetstar offers either pre-purchased meals on board or buy onboard service with food and beverages
7/30/2019 LCCs of Australia
47/59
Jetstar has been the undisputed low cost leader in recent times.
7/30/2019 LCCs of Australia
48/59
7/30/2019 LCCs of Australia
49/59
Virgin Blue Airlines, now known as VirginAustralia Airlines, is Australia's second-largestairline
Virgin Australia was launched as Virgin Blue inAugust 2000, with two aircraft, one leased fromthen-sister airline with single route
After one year the airline has grown to directly
serve 29 cities in Australia from hubsin Brisbane, Sydney and Melbourne, using a fleetof narrow-body Boeing and Embraer jets; and
Airbus and Boeing wide-body jets.
7/30/2019 LCCs of Australia
50/59
After several years operating as a low-cost carrier it improvedits services to become a so-called (self-described) "new worldcarrier" essentially a business model with aspects of the "nofrills" approach of low-cost carriers but offering services morein line with full-service airlines
Virgin Blue previously used a familiar formula pioneered byairlines such as Southwest Airlines and Ryanair eliminatingcosts such as included in-flight meals and printed tickets infavour of selling food on-board and using telephone andinternet booking systems
It also cut costs in the past by limiting the number of airportsserviced and by operating one type of aircraft, the Boeing 737
7/30/2019 LCCs of Australia
51/59
Virgin Blue gained extrarevenue (and publicity)by painting two aircraftas "flying billboards".
One promoted a brandof men's razor, theother a QueenslandGovernment campaign
to attract businessesto the state
7/30/2019 LCCs of Australia
52/59
In February 2007, Virgin Blue signed atwo-year sponsorship deal with NRL teamthe South Sydney Rabbitohs
Virgin Australia is also the official sponsorof the National Basketball League (NBL)
7/30/2019 LCCs of Australia
53/59
In 2008, Premium Economy Class wasintroduced throughout its entire fleet
The premium product offered priority check-
in, larger baggage allowance, lounge access,priority boarding, increased legroom and all-inclusive in flight entertainment and meals orbeverages on board
The product was aimed at business andcorporate customers
7/30/2019 LCCs of Australia
54/59
To capture a share of the business travellermarket, Virgin decided to provide a members'lounge facility for travellers. Originally this wascalled The Blue Room and provided facilities to
members and guests on a pay-as-you-go basis In 2006, Virgin revamped the lounge facilities and
re-launched the product as The Lounge, whichoffered all-inclusive facilities on a membership fee
or casual fee basis. Upgraded facilities providedincluded buffet food and refreshments,newspapers, showers, computers,and WiFi internet access for travellers.
7/30/2019 LCCs of Australia
55/59
In December 2006, VirginAustralia announced apartnership between
Australian cable televisionproviders Foxtel and Austa
r, to introduce a "Live2Air"service on most flights bymid 2007. The Live2Airsystem is only available onselected Boeing 737aircraft, and is in theprocess of being phasedout
7/30/2019 LCCs of Australia
56/59
Fleet of Virgin Blue Airlines compromisedof
Airbus A330-200.. 5 Boeing 737-700 4
Boeing 737-800 59
Boeing 777-300ER.. 5 Embrear E-190AR... 18
7/30/2019 LCCs of Australia
57/59
7/30/2019 LCCs of Australia
58/59
Most of the practices that are being implemented in the AustralianLCCs, can be practiced in the Pakistans environment
The LCCs in Australia preferred to use airports with less servicecharges, the same should be practiced in Pakistan, i.e. using
secondary airports
Differentiation strategies that should be adopted include introducingthe concept of more than single class, like introducing PremiumEconomy class
Another strategy that should be adopted is providing in-flight mealsand lounge services on demand with additional charges
7/30/2019 LCCs of Australia
59/59