Low Cost Carriers

Paper Summary:

This paper discusses the strategic options available to low fare subsidiary airlines for maximizing the overall benefit to their airline. It uses as a reference the successes and failures of previous attempts by other airlines to develop a similar strategic business model. The paper concludes with a brief analysis of the options discussed and by recommending possible solutions and implementations of the proposed business model.

Table of Contents:
Introduction
Boeing
Southwest Airlines
Other Airlines
Bibliography

From the Paper:

"Increased competition, global economic aspects, and terrorist attacks have forced both domestic and international airlines to significantly cut costs, to reduce their scope of operations through outsourcing to subsidiaries, and to improve flexibility and responsiveness through the empowerment of management. These trends are increasingly supported by new developments in information technology and information systems. Technological advances, supported by increased user expertise and familiarity with technology, have allowed information technology to break away from its' traditional constraints. In addition to difficulties in identifying and measuring potential benefits and costs, problems inflicted as a result of growing dependence on information technology have forced many airlines to establish management control mechanisms. These mechanisms are those such as the appraisal of potential investments, the evaluation of their deliverables, and options to offer similar public services at a lower cost to consumers."

Sample of Sources Used:

• Bigelow, B. (2006). Boeing CEO oversees a culture shift. Retrieved August 30, 2006, from the Sign On San Diego Website: http://signonsandiego.printthis.com
• Boeing. (2006). About Us. Retrieved August 30, 2006, from Boeing's website: http://www.boeing.com/companyoffices/aboutus/.
• Thompson, A.A., Strickland, A.J. & Gamble, J.E. (2005). Crafting and executing Strategy: The Quest for Competitive Advantage, Concepts and Cases. 14 Ed.

More papers on Low Cost Carriers:

• Research Paper # 110659 : "The Sustainability of Low Cost Carriers in Europe"
• Dissertation or Thesis # 148055 : "Marketing Strategies of Low Cost Airlines"
• Analytical Essay # 68560 : "Airline Industry Cost Analysis"

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