The objective of this investigation project is to show, analyse and discuss about the way that Air France would fight against low-cost carriers in the same market. In our contemporary world, the airline industry is one of the most important tools in globalization, making possible travels and communications. After the 11th September 2001 the airline industry had several changes. It needs to reinforce its place in the market because of this event the global image of the market had been injured. Business generally travellers are influenced by airport commodities, service on board, and convenience of timing whereas leisure travellers are influenced by price and airport convenience. A third sector exists: charter travels, it can be assimilated in leisure segment. This segment is working linked to travel industry, and according to the official report from DGAC (2005) (French civil aviation authority) the traffic involved is less and less important, and it can be easily assimilated in leisure segment. Thanks to Porter's forces (1980), we can consider that charter travels are not real substitutes of Air transport (because of their product itself).
[...] In addition to that Porter (1995) said that essence of strategy is choosing to perform activities differently than rivals It could be a good way of retaining customer for Air France to keep its strategy as product and service differentiation by offering more of one to one service. Airlines have to drive their revenue management well to avoid their profit falling. Ever according to Nason (2006) there are four important drivers in managing revenue management: - Make the price transparency (explain fees, fares, etc . [...]
[...] Porter (1991) takes to consideration the supplier power, in this case, for Air France the supplier power is relative because some things in the value chain are done by Air France (for example Servair company (In Flight meal supplier) is a part of Air France group) but air transport needs also lot of supplier (which are most of the times the same for all airlines). Thus supplier power could be a threat only if fuel is not delivered well or airports get closed. [...]
[...] Every service which is not included in the core service could be outsourced. By investigating on the Value chain of airlines it`s possible to differentiate core services and secondary services. Some functions are easily outsourced, like luggage management, and catering. The official website of Aeroport de Paris shows different services which are proposed to customers. Checking and selling for example are not included in the core service, the main plane doesn`t need to include checking and selling, so we can outsource it in order to concentrate in flight operations. [...]
[...] Harvard Business review, November/December, pp61-78 Porter M.E Towards a dynamic theory of strategy Strategic management journal, Vol 12, pp95-117 Hannu Seristo, The executive view on the cost problem of European airlines European Business Review, MCB University Press, Volume 96, Number P 14. Schmenner, R.W Production/Operations from the Inside Out 5th Edition, MacMillan, New York Silvestro, R., Fitzgerald, L., Johnston, R. and Voss, C Towards a classification of service processes International Journal of Service Industry Management, Vol No pp. 62- 75. Thierry Vigoureux, 7th march 2008, Le success du TGV vac outer 1000 emplois a Air France Le [...]
[...] This difference with traditional airlines could be the added value of them which provide To conclude we can see that in differentiation and customers orientated services there is a big opportunity for traditional airlines like Air France to retain customer by keeping the service to a high quality with one to one interaction during the boarding and checking for example. This assignment have been done with reliable sources, including books, website and press reviews. It's hard to go in depth because of the word limit which doesn't permit to explain more airlines production concept and more theories. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
