Low-Cost Versus Luxury - Is There Space for a Middle of the Market - a Case Study of a Business Class Airline in Asia Pacific Region

• Main Authors: PEREZ HUGO AXEL, 雨果
• Other Authors: CHANG, CHIH-HAO
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/55cdq4

碩士 === 南臺科技大學 === 商管專業學院 === 107 === With around ten percent growth each year, the airline industry in Asia-Pacific region will definitely need additional growth drivers. In the past, several attempts to build business class airlines fails, however, things have changed since that time, lessons have been learned. By adapting the business model to the Asia Pacific region instead of the transatlantic market, this study will establish a new airline that will mainly focus on linking the major economic hubs of the region. Thanks to low cultural difference due to the high standardization of the airline industry, plus the possibility to adapt the business model, it is possible to create it with only a few variations. By analyzing the previous business class airlines and the various attempts in the business class service by different airlines, we have been able to find out a business model suitable for our operations in the Asia Pacific region, it emphasis on schedule, price, innovation. One of the consequences is that the airline will propose at least two daily flights on its line, first, between Singapore and Sydney, and then, between Singapore and Melbourne, those lines will be operated with the last generation of narrow-body aircraft. We find out that this business plan was profitable if having an occupation rate lower than seventy percent (depending on the aircraft used and price of fuel). Moreover, several lines can be exploited which provide ways for the start-up to develop. However, many issues can occur, first of all, such an airline will require important initial funding, also, the price of oil can be a threat as it can represent a higher part of the cost and decrease the profit margin and finally, the competitors can directly fight against this airline and force it to exit the market.