Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

for a product's bundle cost of assessing buying, utilizing, and abandoning proffered by a firm. In more simple terms, it implies that consumers prefer to

image text in transcribed
image text in transcribed
for a product's bundle cost of assessing buying, utilizing, and abandoning proffered by a firm. In more simple terms, it implies that consumers prefer to purchase products with the bundle of costs that meet their own requirements and necessities (Forsyth, 2002). 1.3. Fees It is evident that low cost carrier's airline fares are cheap, and they deliver minimal amenities to their customers; therefore, they add fees for everything extra on the plane (Pundey et al, 2018). For example, charging checked bags is a common practice from these airlines and their price depends on their weight. Moreover, to reduce operational time and costs, these airlines charge more for purchasing baggage at the airport (De Neufville, 2008). Although these airlines tend to charge everything it is important that they offer a great in-flight experience in order to complement the incurred costs of the passenger. 1.4. Use Smaller Airports Most low-cost carriers tend to use secondary or smaller airports in order to reduce costs. It is not cost efficient for the airline to use major international airports. By flying into smaller airports and not major international ones denote less airport fees and lower waiting times on runways and tarmacs (Dhingra & Yadav, 2018). In airports, the more time a plane spends on a tarmac or runway, the more it pays. Therefore, it is essential that they operate in smaller airports in order to reduce costs and offer more lucrative prices to their consumers (De Neufville, 2009). 1.5. Introduce New Routes to Secondary Cities and Short-Houl Routes An important driver for an LCC in the Asian context is to introduce new routes to cities that are not previously served by other carriers. Moreover, short haul routes are increasingly important for these types of airlines as high demand and short distances best suit the business strategy and model of LCC (Mandic et al., 2017). Emphasizing on these short-haul flight denotes low-cost carriers can maximize their daily usage of their flight crews and smaller planes (Dhingra & Yadav, 2018). Focusing on longer haul flights denote larger planes, heavier cargo, and most importantly, more fuel, a factor that LCC's cannot accommodate (Pundey et al, 2018). 1.6. Maximize Flight Times and Reduce Time on Tarmac It is important that LLC's exploit their airplanes and generate as much revenue as possible daily. This can also be accomplished through a previously mentioned factor, that is to choose short haul

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Hospitality Human Resources

Authors: Robert H Woods, Educational Institute Staff American Hotel & Lodging Association

4th Edition

0866122877, 9780866122870

More Books

Students also viewed these General Management questions

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago