THE POSITIONING OF LOW COST CARRIER (LCC) AIRLINES TO CATER TO THE BUSINESS TRAVELER

摘要

Change is the fuel for any community, no matter if it is industrial, cultural or academic. Especially in an industry, it is these innovative ideas and plans that keep it alive and credible. In this paper, we introduce a model of a low cost airline which can be positioned to the business travelers in order to achieve business cost cutting. It is an effective measure to overcome the financial crisis of the international airline industry in times of recession. The different business disciplines of the industry is carefully monitored and analyzed to model the airline. One the basis of studies and analysis, a business system with a new frame work is developed in order to realize the new airline business strategy. Current system of Low Cost Carriers (LCCs) is studied and required changes in each area of the business are pointed out. The business class passengers always give importance to the facilities and services they receive during travel. Changes are to be made in different areas such as code sharing deals, ticket reservation, technical facilities inside the aircrafts, and services of the attendant during the time of flight etc. Feasibility of the plan is analyzed using different tools such as PEST, SWOT analysis and new industry equations are formulated and standardized using methods such as Potters five forces. An interactive survey is conducted with the business class travelers to understand their requirements and suggestions of improvement for the new plan. From the studies and analysis conducted, we found that the recession - hit business world is the best basis for setting up a Low Cost Business Carrier (LCBC) as majority of the business travelers are forced to limit their expenses for the sake of there parent company. That is the possibility that an LCBC can enhance economic growth of the airline industry in times of recession is unusually high.