Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 11 pages
Data source: Published sources
Topics:
Low cost carriers (LCCs); Skybus; Ultra-low cost model; Ryanair business model; Second mover advantage; SWOT analysis (strengths, weaknesses, opportunities, threats); e-Ticketing; Boeing aircrafts; Subcontracting strategies; America's Ryanair; Skybus' business model; Productivity-based incentive payment schemes; Tertiary airports
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Abstract
Skybus, a newly launched US budget carrier, grabbed attention as the Ryanair of the US. Following Ryanair's successful business model and backed by the local investors, Skybus enjoyed a strong financial position. However, it started facing severe challenges due to poor service quality, the charges levied for each and every add-on service and poor customer service. Critics were sceptical about the future of Skybus. They felt that Skybus might not be able to sustain with its business model in the over-saturated US aviation market by following a European LCC (low cost carrier) business model, which was successful in a less competitive market.
About
Abstract
Skybus, a newly launched US budget carrier, grabbed attention as the Ryanair of the US. Following Ryanair's successful business model and backed by the local investors, Skybus enjoyed a strong financial position. However, it started facing severe challenges due to poor service quality, the charges levied for each and every add-on service and poor customer service. Critics were sceptical about the future of Skybus. They felt that Skybus might not be able to sustain with its business model in the over-saturated US aviation market by following a European LCC (low cost carrier) business model, which was successful in a less competitive market.