Question

we were unable to have class because of the scheduling problems with airlines/flights as a result of the storms that rolled through . Think about business concepts like capacity, supply/demand, etc.

Please respond to the following question(s):

1) Given the vast and intricate network of numerous airlines, who are all competing for market share, why is it important to plan for emergencies/storms/"acts of God" when it comes to meeting passenger demands?

2) Pick ONE airline and provide its mission/vision and then explain what competitive differentiators it possesses when compared to other airlines?

Answer 1

(a) Every airline must plan the cases of emergency/acts of God. If they are the market brand, they have to think about this, because their customers are so reliable upon them that they cannot afford to pose any difficulties for them. They have built their market reputation just because of their customers, if they pose any problem in case of emergency their brand value will get affected. As one company is known when they show how they can manage their customers not in good time but in bad time. Lets say one aircraft have 500 seats and it fly from New york to Delhi. The airline leave 5 vacant seats till the end so that if any customer needs the seat in case of any emergency, they can provide that so, because if a customer gets any airline ticket when they dire need it, they almost book the same airline when they fly because it creates some level of trust in it.

(b) I will choose Indigo airline which is operating majorly in India. It is capturing more than 70% share in Indian market as Air India which is a government entity, serving losses. Spice jet the major airline too in the past were forced to not to operate from their stakeholders as they were not able to pay for their expenses. On one side Indian aviation industry is growing, on the other side two major airline are in huge debt, one of them is not operating now. The thing which differentiates Indigo from its peers were the kind of quality they were providing, supportive cabin crew they hired, cheaper tickets and many more.