Airline Cost Control Strategy

Author : Johnny Ch LOK
Publisher :
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4.6/5 (669 download)

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Download or read book Airline Gas Cost Control Strategy written by Johnny Ch LOK and published by . This book was released on 2020-07-17 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: HOW TO AVOID GAS COST RAISING IN AIRLINE INDUSTRY ?Airlines fuel manufacturing supply strategyHowever, there are some airlines which are the characteristic of self organization . It means that they are present in that both of oil fuel production and providing flights service in airline industry. So, these self organization airlines can control the oil fuel price by themselves. However, any self supply airline organization is also evident in efforts by businesses acts of terrorism against economic targets by adopting proactive steps, such as airline and airport security. So, it seems any self suply airline organization can reduce the risk to avoid oil price raising and terrorism attacks in airline industry risk management sector because oil shortage won't influence their air ticket prices need to be raised. Beside, these self supply airline organizations which have high technology of fuel efficient aircrafts, the use of one aircraft model, the adoption of direct routes versus customer loyalty programs and other operational cost reductions are strategies for increased profitability. To solve oil price, terrorism etc. external risk to airline industry. Instead of high technology of fuel efficient aircrafts and self supply airline organization methods can solve terrorism attacks and oil price rising risks. However, I believe that there are other risks will threaten to airline industry. This risks concern traveller individual psychological factors influence, so it means that any airlines can apply psychological methods to predict which airline passengers' travel consumption desires. The risks include such as (1) user factor, such as : the travel country culture and tradition difference will influence the traveler chooses to prefer to go to the country to travel , the traveler's education level is high , who will choose to go to developed countries to travel, e.g. USA, UK. Otherwise, if the traveler's education level is low, who will choose to go to developing countries to travel, e.g. China, India etc. (2) economic factor, such as air tickets and airline fuel costs, (3) human resources and macro economic factor, such as political stability, economic development, educational policy, health policy, environmental policy. However, these risks occurrences are resulting in the relationship of cause and effect events. These events are not directly observable. Such as, the complexity of relationship between terrorism and airline profitability. Hence, if global airline industry can predict when those risks occur to do protective strategic behavior. It is possible that which can understand why these risk events will occur and their protective strategic behaviors also influence their outcomes to be positive to avoid any external risk threats on the long term. However, I think hierarchy, self supply airline organization efficiency methods which are as possible predictors of user preferences to avoid risk threat events to cause whose airline businesses failure occurrences in airline industry because it can reduce oil shortage factor which causes their air ticket prices need to be rised to keep their planes can have enough fuel supply.