How Air France could be differentiated from low-cost carriers?
Summary :
Table of Contents
- Introduction.
- Review of airline business.
- Types of airlines.
- Understanding the business.
- The core and the secondary expectations.
- Different ways of development.
- Conclusion.
- References.
Abstract
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).
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