Airline Industry

Low Cost Airlines Vs. Well Established Airlines

By

ACKNOWLEDGEMENT

I would like to communicate my sincere gratitude for all those who played vital role in the completion of my research including my supervisor, peers, fellow classmates as well as interview participants. I am thankful to my family whose support has been a source of constant motivation and guidance throughout the completion of this research project.

DECLARATION

I [your full first name and surname], declare that the whole content of this research project as well as research responses is the outcome of my singlehandedly effort, and no part of content of this study has been the part of any study that has been either submitted or published before. This study extricates my individual opinion in terms of the findings of the research regarding the implementation of ERP, and does not necessarily reflect the opinion of my college.

Signature: -----------------------------

Dated: -----------------------------

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: INTRODUCTION1

1.1Background of the Study1

1.2Problem Statement2

1.3Aim and Objectives of the Study2

1.4Research Questions3

1.5Scope of the Study3

1.6Rationale of the Study4

1.7Research Outline4

CHAPTER 2: LITERATURE REVIEW6

2.1Airline industry of UK6

2.2Financial challenges of UK airline industry7

2.3Government Legislation & Market Structure8

2.4Determinants of Demand in Airline Industry9

2.5Low cost air lines in UK airline industry12

2.6Financial performance of low cost airline companies in UK13

CHAPTER 3: METHODOLOGY16

3.1Research Design16

3.2Qualitative Research Method17

3.3Data Analysis Techniques19

3.4Ethical Considerations19

3.5Confidentiality20

3.6Validity20

3.7Reliability21

CHAPTER 4: ANALYSIS22

4.1Analysis of Research Findings22

4.2Integration of Findings in the Research Questions25

4.3Financial performance of low cost and well established during the 2007- 08 recession26

CHAPTER 5: CONLCUSION AND RECOMENDATIONS28

5.1Conclusion28

5.2Recommendations29

REFERENCES30

CHAPTER 1: INTRODUCTION

Background of the Study

Airline market is the most crucial industry of the UK economy. Not only in the UK economy, is the demand for airlines expected to grow throughout the world as the result of increased globalization. However, it should be taken into account that the airline business has to face a variety of challenges due to the changes in internal and external factors. Economic conditions as well as oil prices are the major factors that exert direct impact on the trend of the airline industry. Security and insurance issues as well as currency appreciations are the major external shocks that were faced by the European airline industry. However, it should be taken into account that the recovery phase of 9/11 as well as Iraqi war is the two international incidents that exerted a very negative impact on the airline industry.

It is was time when people were avoiding travelling due to security issues as well as the result of financial hardship (Makinen, 2011). Under such circumstances, the new innovative companies decided to focus on price cutting rather than emphasising on luxuries. However it is crucial to explore the performance difference in between the two totally different marketing strategies of well established companies and low cost airline companies. However, in this particular study, the focus is on the strategies and performance of British Airways (well established airline) and Easy Jest (low cost airline).

Problem Statement

The UK airline market has been facing pressure from internal as well as external factors. On the basis of the pest analysis of UK airline, it is observed that the increased oil ...