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Low Fares Airlines

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I would appreciate your assistance with the attached project.

Activity
Think of yourself as the marketing director for Fair Skies Airlines, which provides consumers with a product and service that is well accepted and used by millions of people each year in the United States. Several innovations are about to be incorporated into the product that will change some of its features and modify the benefits customers enjoy. These have already been decided; in fact, they are almost fait accompli.
In essence, this full-service airline is about to undergo a complete transition into a new low-fare carrier with meager accommodations and no advance seat-selection. It will charge passengers for everything extra, from coffee and soft drinks to sandwiches and even temporary use of pillows and blankets. Passengers will have to check their own baggage, but ticketing and check-in will be more automated. Fares will be exceptionally low, and there should be less wait time at check-in counters. Belatedly, upper management has asked you to obtain some feedback on this new orientation.
Part A
1. Research at least three (3) discount airlines describing the different services they provide as options for their customers.
2. Consult at least two (2) airline industry journals and/or publications from specific airlines and provide a brief summary describing what a "discount" fare really means.

Part B Your boss has asked you to validate the claim that the new concept will be a success. In order to do so, you need to conduct a SWOT analysis. Your boss has asked you to include a competitive component in the analysis. Your SWOT analysis must include at least three (3) internal strengths and three (3) internal weaknesses, as well as three (3) external opportunities and three (3) external threats. The competitive component must include mention of at least two (2) competitors in relationship to the opportunities and at least two (2) competitors in relationship to the threats you have identified.

Part C Your boss has asked that you interview people about the upcoming changes. Create a list stating the type of subjects you should interview. Upper management favors sampling loyal Fair Skies passengers who have flown at least three round-trips, but feel free to propose others you think should be interviewed. Name at least three (3) subjects to interview.

After creating the list above, you decide to use a focus group format.
1. List and discuss two (2) considerations that you think will be important in leading the focus group.
2. Compose at least 10 questions you think would be necessary for adequate input and which address the two (2) or more considerations you have identified.

Part D Write a memo to your boss and associates explaining the following. Remember that most people rarely read memos more than two pages long, so keep it short and to the point. Don't forget to cite your sources, however. Your list of sources and any pertinent charts, tables, and reference materials can be added to the memo as appendices. The results will provide guidance for marketing planning that may insure the survival of Fair Skies while other airlines are floundering during these difficult times.
1. Explain the method and rationale you used for conducting this type of research.
2. Explain how you would use input from the SWOT analysis.
3. Explain how you would use the proposed questions.
4. Make at least two (2) recommendations for management based on what you have learned.

A 4-page respond is required for the combination A, B, C, and D in an APA format.

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Solution Summary

The answer to this problem explains feedback for an airlines changing over to a low fares model. The references related to the answer are also included.

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In compliance with BrainMass rules this is not a hand in ready assignment but is only guidance.
Part A
Discount fare means offering of low cost tickets with discounts and tickets in promotion. The advertised price does not include charges and taxes. Usually, ten percent of the seats are offered at the lowest prices and are the first to sell. The prices rise to a point where they are comparable with tickets of other airlines and even match the prices of full service airlines. Discount fare means that the airlines has lower fares and fewer comforts to make up for revenue lost in lower ticket prices (1). The airlines usually charges extras such as food, priority boarding, seat allocation, and baggage. Discount fare also means operating at lower cost structure than competitor airlines. In short discount fare means a carrier with low ticket prices and limited services (2).

Part B SWOT Analysis of Fair Skies Airlines
The three internal strengths are the staff of Fair Skies Airlines is friendly, is recognized for excellent services, and has a strong brand image. The three internal weaknesses are high overhead costs, relatively high aircraft turnover time, and has flights to limited number of cities where operations are located at high cost terminals. The three opportunities are there is recovery in the economy, there can be international expansion, and Fair Skies Airlines can introduce longer flights. The competitive component is that Jet-Blue airlines have introduced longer flights such as coast to coast flights. The second competitive component is that AirAsia has introduced international flights. Three threats are three is intense competition, there is fluctuation in the oil markets, and the economy has not started growing ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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