Competitive advantage Flashcards
Fly appears to have tapped into the corporate traveller market, with numerous corporates
now placing staff on low-cost carriers in a bid to cut costs
This provides Ta-ta SA with a source of year-round revenue rather than being reliant on the
tourist market which is more seasonable.
It has entered into strategic partnerships with foreign airlines, enhancing its ability to use
these airlines as feeders of passengers into the Fly network
No significant safety incidents took place at Fly during the period under review, impacting
positively on the reputation of the airline.
The newer aircraft result in a more pleasant flying experience and may also be perceived to
be safer for the passengers resulting in increased customer satisfaction
The following cost reduction strategies and improved cost efficiencies result in an
improvement in Fly’s ability to compete in the market by more aggressive ticket pricing, the ability to
spend more on customer services etc:
As evidenced by the reduction in maintenance hours per aircraft, the newer aircraft enable
cost containment in respect of its maintenance expenses
The reduction in maintenance hours means that the aircraft are on the ground for less
thereby increasing available flying time and potentially revenue
Improvements in the Fly load factors – improved occupancies result in economies of scale and
increased competitive advantage through cost efficiencies, which in turn improve the airline’s
ability to compete in the market that is experiencing reduced load
factors.
The quantity of fuel burned per passenger has been decreasing over the last three years
which ties in with the replacement of older aircraft. The airline has therefore been able to reduce
its fuel consumption and hence its fuel bill
Utilising a single type of aircraft in its fleet reduces complexity and hence cost, particularly
in terms of maintaining the aircraft.
Upgrading the the reservation and on-line check-in systems results in improvements in
operating and cost efficiency (through a reduction in Fly’s dependency on human intervention in
the reservation process as well as check-in process) and customer
satisfaction.
The newer technology aircraft have positively impacted on the amount of fuel burnt by the Fly aircraft,
reducing the airline’s carbon footprint, which is likely to afford the airline more legitimacy [alt:
improve the airline’s reputation] in the market and improving its competitive
positioning.
Faster turnaround time than the industry norm: now 32,86 minutes v industry norm of 39,24
minutes. Faster turnaround times lead to increased capacity (flying time) and increased customer
satisfaction.
