Showing posts with label Overall Market. Show all posts
Showing posts with label Overall Market. Show all posts

Monday, November 23, 2015

How far will the Airlines to reduce their costs?







Less toilets, stewardesses instead of stewards, plastic cutlery instead of steel or taxes for overweight travellers. Airlines compete imagination to lighten their planes and save money on kerosene

Who said light plane said lower jet fuel bill and limited pollution. It is these economies that are striving aircraft designers of tomorrow, which display their new technologies at the Paris Air Show. If reduce the weight of aircraft has always been the concern of manufacturers is also to meet this challenge as airlines stimulate their imagination. From the reduction in the number of toilets to the peanut less in appetizers bags.

Reduce the number of toilet or standing travel


Ryanair is the undisputed world champion of original ideas for saving kerosene. Until recently, Michael O'Leary was talking about his company by announcing a possible reduction in the number of toilets on the plane, " a move to one instead of four would win six seats”, he had advanced. Even before, the CEO of the low cost airline opened a debate on security in the air, thinking a new organization on the plane, that of standing travel. Recently, Boeing announced it was working to reduce the size of the toilet to win 14 additional seats in his 777.

Among manufacturers, the size of the seats is also being studied: Airbus, which designs seat 18-inch economy class, has just found a new parade to the interior of the aircraft to accommodate more seating without sacrificing size: enhance the cabin floor to where the cabin is the widest for the placement of longer rows (4 seats instead of 3) .

Pay according to its weight


"A kilo is a kilo is a kilo! ". Samoa Air 's slogan will be advertised to the small fleet of the Pacific airline. She is now the first in the world to openly display its policy to charge passengers according to their weight. Thus it’s necessary to pay between 0.80 and 3.40 euros per kilo. Some US companies also constrain overweight passengers to buy two seats instead of a book or business class where the seats are wider. Ryanair was also considered but had abandoned the establishment for technical reasons: the prescribed timing to collect the fee before boarding danger of losing too much time.

Recruit hostesses rather than stewards


The economic justification is not obvious, but the Indian company GoAir does not seem to be embarrassed: women are less heavy, it is more interesting to have stewardesses as stewards. According to a report in the Times of India, the company estimates that each additional kilo costs " 0.05-dollar cent per flight hour, which would save $ 500,000 a year." Men are therefore more "pollutants”.

Lighten meal trolleys


Just an olive or less three peanuts in an appetizer bag to save thousands of dollars. Three peanuts against $ 300,000 a year, that the savings made by Southwest Airlines for the past fifteen years.


How far will Airlines to cut the costs?  Tomorrow maybe we will not be able to travel with luggage..

Source:
LeFigaro.fr

Saturday, November 21, 2015

Ranking of the best airlines 2015

What airline company won the votes with passengers from different continent?

As part of the “Le Bourget Airshow”, the independent organization Skytrax published on June 2015 a ranking of the best 100 mondial airlines. To compile its ranking 2015, skytrax polled 18 Million travellers in 160 countries with 41 different indicators such as food quality, helpfulness aircrew or comfort seats.
Qatar Airways won the first prize. This famous company had previously won this award in 2011 and 2012.


They also received two other awards: “Best airline in the middle East” and the “Best business class seat”.
“Our passengers are at the heart of everything we do at Qatar Airways and we are very proud to be recognized by them and receive these three awards skytrax” said the owner, Akbar Al Baker, who has been at the Elysee to receive the official medal of the Honour Legion from French president, François Hollande.
“These awards reflect the satisfaction of our passengers; they choose to fly with an airline five stars and today they have selected Qatar Airways as the best best airline in the world for the third time”.


As for the French Airline Air France, they arrived at the fifteenth position (25th in 2014), They are also the first in the company category that has the most improve. French culture obliged, they won also the first place and for the second consecutive year, the category of the “Best food in the world offered in first class lounge”.
“These distinctions underscore the excitement that drives Air France to offer more and more products and exceptional service to each of our clients. Our efforts are paying off!” Said the CEO of Air France, Alexandre Juniac.

            The Top Ten of Airlines company according to Skytrax:


  1.  Qatar Airways
  2. Singapore Airlines
  3. Cathay Pacific Airways
  4. Turkish Airlines
  5. Emirates
  6. Etihad Airways
  7. ANA All Nippon Airways
  8. Garuda Indonesia
  9. Eva Air
  10. Quantas Airways

Sources:

tempsreel.nouvelobs.com
(credit photo: airline quality.com, qna.org.qa)

Wednesday, November 11, 2015

Overall Market

Global Overview


The airline industry has known several years of profound economic and technological changes, both internationally and nationally. Accidents, changes in oil prices are some factors that massively affected this sector.
Since 1970, air travel has been democratized, especially thanks to growth of “low cost” companies: global air traffic has increased tenfold, from $ 300 million to more than 3 billion passengers per year.

Here are some key figures that well represent this market:

29 200 000
A plane takes off every second around the world, representing 29.2 million flights per year .... around 80,000 commercial flights every day ... 200 million commercial flights are expected per year in 2020.

3,1 billions
This is the number of people who flew in 2014. 160 000 people travel each day by air.

1/4 passenger
is really stressed when it must fly

Despite the recent high profile crashes, such as the Germanwings crash in France and the Malaysia Airline disappearance, air travel is incredibly safe. To give you an example, a fully loaded 727 would have to crash every two days just to equal the same number of fatalities experienced in automobiles every year in the United States alone.



The main actors


Qatar Airways has been named the Best Airline in the World for 2015 by leading aviation consumer website Skytrax. This survey, which covered more than 245 airlines, measured 41 different parameters ranging from boarding procedures to seat comfort to the quality of service; this is obviously a good representation of the quality of the services proposed by these airlines.
Next to Qatar Airways, we can see at the second place Singapore Airlines, the third place is taken by Cathay Pacific Airways followed by Turkish Airlines and Emirates.

The performances of these companies can differ according to the strategy they decide to put in place toward their clients. Therefore, we can differentiate the premium companies (Qatar Airways or Emirates) towards low-cost companies like Ryanair or Southwest Airlines. They also differ regarding the type of segment they are focused on : long or short-haul.
These strategies can be be deployed through the services proposed on board, the hostesses, the different touch points, TV ads…


The market can be segmented this way:


Mains trends and challenges

Airline companies have to face with one main issue: the service they sell is vey complex


  • On one hand, aircraft is considered as hard product, the upgrade of which is an expensive way of differentiation with a long pay-back.
  • On the other hand, a soft product – intangible services entailed in on-board staff through a welcoming and seamless customer experience across all aspects of air travel, from reservation to touchdown.
People have grown accustomed to seeing significant improvements in their experiences with things they buy. Hence, airlines should be diversified to catch up with fast-growing consumers’ expectations as well as competition on the market. In response to these factors, we believe that airlines must take several specific measures to enhance competitiveness and increase consumer expectations which dictate the trends in current market
Nevertheless, the pressure on prices will remain rather intense: the airlines will have no other choice but to keep prices low by trying to improve their performance through higher fill rates. The positive aspect is that it forces companies to grow, as air transport is a volume activity which requires significant operating leverage.
This will inevitably lead to combinations, mergers, larger alliances, or even to international mergers as that of Air France and KLM in the last few years.

According to Olivier P. Müller, in charge of Consumer Goods & Research at Credit Suisse, there is three key success:


  •  The tarification, with companies that will continue to charge supplementsSecond, they must keep costs down. 
  • Their flexibility in this area is limited because the charges of fuel and personnel represent more than 50% of their costs.
  • Finally, efficiency which is the biggest lever.

In our blog we will talk about the Singapore and Emirates airlines. With these both companies, the journey itself becomes an amazing experience: you will interact with attentive personnel, gourmet food treating all your senses, and comfortable seats, in-flight entertainment, and even flat-bed guarantees total relaxation. We invite you to enjoy the experience with Singapore and Emirates airlines and to discover the fascinating insights about these brands on our blog.