At the newsstand, an aviation magazine headline read “Airbus A380 the Future of Aviation.” Although, from a forgotten source, it was a bold statement to which curiosity arose. For several years now the big bird is been soaring the skies. The Airbus Company, which claims to have delivered 144 out of the 318 units ordered, is expecting to gain customers, to which they are offering a 15% discount; a whipping $62 million cut out of a $414 million machine. Not bad for an airline planning to expand, but, aside from the economics and such a good deal being offered, comes an even bolder statement, the reality of how low-fare airlines are bad business for air travelers. And the future of aviation does fall in the new aircraft. Upon the deregulation of airlines, air carriers began transitioning to the low-fare concept; an idea that maximizes profits while minimizing costs (Lawrence, 2008).
The concept breaks operational cost to its minimum expenses and then divides it equally among the number of passengers they will carry aboard. Bravo to the concept, because it allows air travelers to find flights and pay less for an air fare, that in times of harsh economy are hard to find. People doesn’t pay for extra luggage they are not carrying, neither have they to pay for a lousy meal that often times doesn’t arouse their appetite. All in all, the consumer pays for a bare fare and the airline provides a service at a price most can’t refuse. The air traveler pays the bare price. A price so good, it enhances an ogre’s mood. However, consumers don’t really know it is not literal but physical bare cost. This means that everything extra from even before you arrive to the airport will be an extra fee. You will pay a fee if you check in at the airport instead of home. Also, another fee if you forgot your home-printed ticket at home. If you have more luggage than the bare-allowed, you will be overcharged with a last minute fee.
The Term Paper on Industry Analysis: Airline Companies
The airlines industry contains diverse types of players that compete in distinctive niches each with different business models. Airline companies owned by the State characterized the airlines industry into the 1980s. Because of privatization, this model no longer exists in Europe or in the U.S., but it is still present in Asia and Africa. Standard airline companies offer scheduled flights with ...
As well, you will have to pay for everything inside the plane; from a glass of water to a bag of nuts. Like some of you, the water and food is not important as you most certainly got a good air-fare price. But don’t be surprised if the next time aboard, you are charged to use the restroom. Back in 2010 Ryan Air tried to charge an extra fee for restroom usage to cut costs even lower (Mayerowitz, 2010).
Furthermore, the strategy of business is bad for air travelers as the bigger the aircraft the more capacity it has. An A380 has a length span of 2/3 an American football field (about 80 yards).
It has a wingspan longer than its length (87 yards).
And it has a capacity of up to 853 passengers of a same low-fare class. If companies can get a discount for the aircraft and the calculation from Airbus is true, that an A380 can increase profitability by a 50%, the odds are beaten. The old traditional airlines that do provide complementary meals to their clients and still provide customer quality may not last. Hence, the ad was true; an airbus 380 could be the future of aviation. Perhaps, next time your visit to the restroom at 35,000 ft will have an extra fee.
References
Airbus Company. A380 – A380 photos, pictures, A380 videos, A380 3D view | Airbus | Airbus, a leading aircraft manufacturer. (n.d.).
Retrieved November 17, 2014, from http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/ Lawrence, H. (2008).
Aviation and the role of government. Iowa: Kendall/Hunt Publishing Company. Mayerowitz, S. (2010, April 13).
Paying to Pee: Have the Airlines Gone Too Far? Retrieved November 17, 2014, from http://abcnews.go.com/Travel/Green/paying-pee-airlines-critics-call-ryanairs-fee-inhumane/story?id=10355139
The Term Paper on Australian Company Report
Group Oral Presentation: the drivers and conditions for the survival and success of an Australian business enterpriseQantas Airways Limited ABN 16 009 661 901 October 2005Fact FileQANTAS AT A GLANCEHISTORY Qantas is the world's second oldest airline. It was founded in the Queensland outback in 1920 andis Australia's largest domestic and international airline. Qantas is also recognised as one of ...
