Question #3 Compare and contrast the different strategic approaches of the network and budget airlines. What are the strengths and weaknesses of each approach?
Netork airlines direct their flights through significantly larger cities where the hubs are more dominating. This strategic approach is called the "hub and spoke system". High gas prices have resulted in the customers paying alot more money to fly. There are also alot of in flight services that have made flying more costly. Buget airliners are fly out of secondary hubs rather than the more dominating hubs. This is alot cheaper. They also hire nonunion workers who learn and multi task different jobs. They don't have any complementry foods or drinks and this results in cheaper tickets. People might be more comfortable and satisfied if they were able to grab a bite to eat or a drink when they're thursty and not having in house services could turn the customer away. They also only offer one type of plane which i think isn't a bad idea because the workers can develope some sort of consistency as far maintaning these planes.
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Luke Ferreira
questions 4
In order for the major airline companies to make a profit they need to do a few things. First off they need to keep their prices of operation down so they can charge less for thier own tickets, in turn selling more. They could do this by turning to nonunion workers, cross training employees to do multiple jobs, and cutting down on in flight entertainment and food. This would help them compete with the budget airlines.
question 5
In order for the major airline to stay in buisness they will need to cut their prices low enough for people to notice. This will mean that if they do not cut down on the cost of running the airline they will be in big trouble. If they do not want cut prices then they will have to come up with some other way of selling tickets. This could be an advertising sceme or offering the customers something that they would not get flying on a budget airline.
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