Low Cost Carriers

Task One:

Identify the factors that have facilitated the growth and development of low cost carriers in UK. (Debonair, Ryanair, easyJet) 750 words Possible applied models for task 1. no need to use both.

• Mckinsey’s 7-S Framework Model

• TOWS Matrix Structure and Points to consider:

Heading 1 – Introduction (50-75 words)

Heading 2 – Private-sector companies / A simple management and overhead structure, with a lean strategic decision-making process. (175 words)

Heading 3- Primarily point-to-point operations and Serving short-haul routes (175 words)

Heading 4 – Focus on price sensitive traffic / Low average fares, with a strong focus on price competition. (175 words)

Heading 5 – A very high proportion of bookings made through the Internet. (chart + explication of the chart) (100 words)

Heading 6 – conclusion (75 words)

Harvard Referencing system must be used, charts and graphs can be included but must be explained and referenced. You must write this task as a briefing document, following the appropriate structure.

Task Two:

Critically assess the challenges that low-cost carriers have placed on traditional global airlines. Possible applied models (one of them must be used to perform the critical analysis)

• M.E. Porter’s Generic Strategy

• Strategic Map

• PESTLE

• Benchmarking exercise

• Lean Management Model

Structure and areas to consider:

Heading 1- Introduction (75 words)

Heading 2- Price sensitivity /Profit sustainability (200 words)

Heading 3- Traditional airlines cloning LCC, applying pressure on LCC’s (200 words)

Heading 4- Possibility that airlines need to consolidate as global pressure forces airlines to merge (200 words)

Heading 5- Conclusion (75 words)