In order to retain the base of customers and to

This preview shows page 43 - 45 out of 82 pages.

In order to retain the base of customers and to increase profits, the airline industry must increase ways of improving commodities. Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers. These amenities in the long will allow the customers to feel more comfortable with spending the higher air fare rates, in order to compensate for the rise of fares. The airline industries have to most importantly find more effective ways to use fuel. As the world moves towards a customer experience based market, Airlines are forced to make changes in their operations. The idea of feeling comfortable is if you’re within your home carries into the airplane. While Wi-Fi has been available on many domestic flights for a while, the difference in 2013 will be seeing more airlines offering connectivity on trans-Atlantic flights, which require Internet access via satellites rather than ground towers. Another trend for 2013 will be wireless inflight entertainment — offering on-demand movies, TV shows and other entertainment that passengers can view and listen to on their own devices, such as a laptops and tablet computers. Virgin America and even ultralow-cost carrier Allegiant Air are examples of airlines that will offer wireless entertainment in 2013. The price for fuel has risen to a high price as it did in 2008, as companies seek out another alternative ways to reduce fuel cost. Significant differences exist in fuel volume consumption by airlines, reflecting fleet ages, average seating densities, weight-saving strategies and other efficiency measures. Long haul low cost Air Asia X’s CEO, Azran Osman-Rani, believes there are considerable competitive advantages to be gained by focusing on fuel volume “where we can get to 40%-50% lower than other airlines in the amount of seat 100km, or miles per gallon”. If yields do soften, this cost reduction approach will have to dominate. Fuel surcharges will not gain traction. Implications
Image of page 43

Subscribe to view the full document.

As a group, we came up with a few alternative solutions to the issue of rising fuel cost and other ways to compensate and improve customer experience within airline industries. Expound on new fuel innovations; create a cost structure that remains competitive and beneficial to the industry in areas of growth. Hire employees capable of doing the job better or train existing employees to do assigned task better to improve consumer in-flight experiences. Although the economy is in the recovery stage, we are still experiencing some rough economic conditions. The Airline industry faces issues including the current economic condition, the changes in the IFRS standards, and customer service quality which indirectly effects corporate social responsibility. Based on 2012 and previous reports, airlines have reported decreased passenger mileage, which negatively reflects revenues. In result of the economic downturn many airlines have considered merged to maintain. The global issue with going green is a tough one that every industry seems to have trouble doing.
Image of page 44
Image of page 45
You've reached the end of this preview.
  • Spring '13
  • Ashley
  • Accounting Industry

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern