Since the world’s first airline company has been established (German Airship Transport Corporation in 1909), especially the new style of low-cost airlines increased the competition on the market for commercial flights. Towards the end of the century low-cost airlines offered first no-frills products at a low price. The concept originated in the U.S., before it spread to Europe in the early 1990’s and subsequently to the rest of the world (Chan 2000). One main reason for the accelerated increase of low-cost flights can be seen in the EU enlargement, where open skies arrangements were extended. As a result low-cost routes were established by existing and new operators. The main characteristic of this new strategic orientation was the lower operating cost structure than this of the traditional market participants. The traditional airline industry had to face an essential change in the market, with an increase of competition and new business models.
Focusing on Europe, there were only a few low-cost airlines before the year of 2000. However, today about 60 low-cost carriers moved mainstream in Europe with a total market share of 24%, whereas in Germany 23 low-cost airlines operate (Berster 2007)...
...To evaluate the specific strategy of Germanwings it is necessary to set limits to the field of study. After introducing the company itself, the strategic position will be evaluated by focusing on Germany. Thus, Germanwings will be compared to the operators acting in this country. Therefore, it is useful to introduce a strategic mapping and the analysis of price practices focusing on Germanwings. Furthermore, important individual measures of the company will be explained which soften the impact of the above mentioned external influencing factors (PEST-analysis). Finally, some up-to-date measures of the company will conclude its strategic orientation.
Inhaltsverzeichnis (Table of Contents)
- Introduction - An overview of the market for low-cost carriers
- Carriers and their relation to low-cost carriers
- Differences between low-cost and full-service carriers
- GERMANWINGS – AN ANALYSIS OF THE GERMAN LOW-COST CARRIER
- CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This coursework assignment examines the low-cost carrier industry, specifically focusing on Germanwings. The paper aims to analyze the strategic positioning of Germanwings within the industry, highlighting its business model and key competitive advantages. It also explores the impact of low-cost carriers on the broader aviation market, examining the differences between low-cost and full-service carriers.
- The rise and development of the low-cost carrier industry
- The strategic positioning of Germanwings within the industry
- The business model and cost-minimisation strategies of low-cost carriers
- The impact of low-cost carriers on the traditional aviation market
- The key differences between low-cost and full-service carriers
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction - An overview of the market for low-cost carriers: This chapter provides a historical overview of the emergence and growth of the low-cost carrier industry. It examines the key factors driving the industry's expansion, including the impact of EU enlargement and open skies arrangements. The chapter also outlines the core characteristics of low-cost carriers and their key differences from traditional full-service airlines.
- Carriers and their relation to low-cost carriers: This section presents a classification of various carrier types within the aviation industry, including full-service carriers, charter airlines, and regional carriers. It explains the relationship between these types of carriers and how they influence the emergence and development of low-cost carriers.
- Differences between low-cost and full-service carriers: This chapter examines the main strategic differences between low-cost and full-service carriers in terms of their pricing, distribution, network, services, and operational activities. The chapter analyzes how low-cost carriers prioritize cost-minimization and cost leadership strategies, while full-service carriers focus on differentiation and service quality.
Schlüsselwörter (Keywords)
The primary focus of this coursework assignment lies on low-cost carrier industry, specifically Germanwings, and its strategic positioning within the industry. The key themes explored include cost-minimisation strategies, business models, strategic differences between low-cost and full-service carriers, and the impact of low-cost carriers on the aviation market.
- Citar trabajo
- Volker Küpper (Autor), 2007, Low-cost carrier industry: A focus on Germanwings strategy, Múnich, GRIN Verlag, https://www.grin.com/document/90380
