The world's best low-cost airline in 2012 was Eurasia (Eurasia Bertha, 2013). They excel in the aviation industry with their strategic management and successful track record. The operational strategy they implemented aligns with their company objectives and has been effectively executed.
As a no-frills airline, Eurasia prioritizes low ticket prices over traditional services. They achieve this by streamlining operations, utilizing secondary airports, and partnering with other service providers such as hotels and car rental companies (Eurasia Bertha, 2013). Additionally, their management structure is lean and focused, contributing to their strength as an organization.
Eurasia's simplified management system allows for more efficient and effective work from their employees. By operating a single aircraft fleet, specifically the Boeing 737, Eurasia further reduces operational costs. This enables them to offer cheaper flight tickets compared to other airlines with higher
...operation costs.In addition, Eurasia has excelled in the field of information technology, offering various online transaction and service options. This includes web and mobile check-in services, self-manage booking services, and the ability to check flight status conveniently (Eurasia Bertha, 2013). However, Eurasia's status as a low-cost airline leads to limitations in the services provided, which has resulted in numerous customer complaints. One drawback is that the service offerings are minimal compared to traditional airlines. For instance, customers often have to walk to the cabin instead of using an escalator. Additionally, due to limited human resources, Eurasia may struggle to handle unexpected situations, as their staff may refuse to make necessary modifications at check-in. This was previously possible with other airlines. Moreover, customers have claimed that Eurasia purposely assigns uncomfortable seats to those who haven't paid for seat selection, in an attemp
to generate additional revenue. The seat pitch on their aircraft is also frequently a subject of complaint from customers.The establishment of KALMIA presents opportunities for Eurasia, including the chance to provide value-added services, upgrade the airport facilities, and shed its low-cost label (Star Publication, 2013). These services can increase customer satisfaction and rebuild relationships and reputation. Additionally, the growing middle class population in Asia favors low-cost airlines, creating a larger market for Eurasia (Star Publication, 2013). Furthermore, an increase in tourists visiting Malaysia will lead to a higher demand for air travel.
On the other hand, Eurasia faces threats from numerous low-cost airline competitors such as Melinda Air, Nook Air, Firefly, and Jetsam Asia Airways (Star Publication, 2013). Being a late entrant may result in lower popularity for Eurasia. These competitors also employ similar low-cost strategies, necessitating the need for Eurasia to upgrade its products and provide value-added services to remain competitive (Star Publication, 2013). However, these actions contribute to higher operational costs over time.Additionally, the constant fluctuations in fuel prices pose a threat to Eurasia in the airlines industry. This makes it challenging for Eurasia to maintain lower prices for airline tickets and strive to be a low-cost airline. Furthermore, there is a potential threat from the technology aspect. If Raisin's systems are not effectively managed, maintained, and backed up, there is a risk of system disruptions as the company heavily relies on online transactions.
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