When the low price airlines invade ...

In recent years, http://www.aliyun.com/zixun/aggregation/79320.html "> The world's established airlines increasingly feel that Low-cost airlines have invaded their sphere of influence!"

The latter is the leader of the "low price strategy to the end". For example, the more famous are the United States Southwest Airlines (southwest) and the Irish Ruian Air (Ryanair), their common feature is that the cabin is not graded, simplifying the package, to provide passengers with the option of the flight related services (and change the standard services of unification). For the UK airport in 2012 alone, more than half of all passengers opt for Low-cost airlines-including holidaymakers and even some business travellers.

However, if placed in global coordinates, Britain's data can only be ranked seventh. According to the latest report by Amadeus, the Global Tourism Distribution Research Institute, the Philippine Air Services market has the largest share of Low-cost airlines, with more than 65% of passengers opting for Low-cost Airlines in 2012 years, and a company called Cebu Pacific (Cebu Pacific Airways) boasts 46% 's own market share. The Philippines is a country of more than 7,000 islands, and, without a doubt, air travel, if affordable, has become the most practical and viable form of intercity transport in the country so far. Countries with the smallest share of low-cost Airlines include Russia (which has a share of only 5% per cent of all departing flights), Japan (4%) and China (1%).

In the face of the financial crisis, as well as rising fuel prices and other costs, coupled with the "invasion territory" of Low-cost Airlines, many veteran airline operators are focusing on "the simplest way to change the downturn", which is to enable "thin operation" strategy. An aviation market Trend report, released by KPMG in April this year, says veteran airlines are becoming more and more alike to their rivals, both in terms of fees and service offerings. The cost gap between the two companies has shrunk by 30% over the past 6 years, in part because older airlines are increasingly abandoning traditional ways of doing business, such as cancelling free baggage services, changing cabin meals to snacks and beverages. In addition, European airlines, such as Irish Airlines and Iberia, have begun to charge a predetermined seating fee (higher than the window); In order to reduce the cabin weight, the cabin stopped supplying all free magazines.

A typical veteran airline spends 2.5 cents more than a low-cost airline, according to the KPMG report, which flies 1 kilometres (0.6 miles) per flight. In 2006 years or so, the figure is 3.6 cents. On the face of it, the cost-cutting strategy has been successful, but KPMG reported that, in line with the bid and imitation of Low-cost Airlines, it was in fact putting established airlines in a dangerous position-

First, the inherent mechanisms of traditional airlines (such as long routes, high structural cost, low occupancy rate, crew staff working hours of the effective utilization of low, fuel hedging weak performance and so on, decided that it does not have the cost advantage, if in low-cost Aviation competition only in the cost of the article, then will only be stretched.

Second, backyard is not without precedent. In unionized airlines, if the cost-cutting measures are inadvertently used, they are likely to cause a surge of strikes by hurting employees. Spanish Airways (Iberia) is the latest airline to break service on strike.

More importantly, the problem becomes even more acute when the incumbent airlines "lean" while low-cost carriers offer additional services to passengers. For example, Yi-Jie Airlines now introduces free seating reservation service, a flexible booking system; Virgin (Australia), also a low-cost airline, has added "before boarding the business class experience" in its domestic route last year to provide a range of exclusive services to key customers.

Of course, if the "long route" "economic fares" "quality service" combined to operate without a short board, it will be very popular with the market-because generally speaking, Low-cost airlines are still flying in the short distance of the route. For example, some of the Gulf's established airlines (Emirates, Etihad, Qatar, etc.) have been profitable, and the long route version of AirAsia X has recently sought a Malaysian IPO and plans to raise $300 million trillion. Similarly, Singapore Airlines is also testing the long Route Low-cost aviation market, starting last year with the Scoot brand to start a pilot operation.

For ordinary passengers, low prices are good, but a long fight in price is not necessarily a good thing. In the competition with Low-cost Airlines, some of the old European companies have been defeated and have to raise prices or move towards mergers and acquisitions. In the United States, Continental, Northwestern, Midwest and Trans-airlines have merged with other operators, with average ticket fares up by 13% per cent since 2009. I remember one time in Beijing saw more than 20 Hungarian pilots come to China's airlines to find jobs, they worked for the national airline Malev, can be in 66 after the operation, Malev closed.

Speaking of China's aviation market, as far as I know, is a very high regulatory market. Several large state-owned companies have also not been hit by Low-cost Airlines, which have less than 1% per cent market share. The flip side of the coin, however, is that state-owned airlines may be immune from challenges in their home markets, and once they have ambitions to compete for cakes in overseas markets, they may find that their opponents are already struggling in a highly competitive market environment. "This article is published in" IT Manager World "June 5, 2013, signed by China International writer. 】