This by these LCCs to reduce the ticket prices

This research
project is focused on analyzing factors that influences a passenger’s airline
selection for travelling by a Low-Cost Carrier (LCC). An LCC is best
differentiated in the aviation market for cost reduction to achieve the price
leadership strategy. The principal aim of this research is to determine the
factors that influence passengers to travel in an LCC in UAE. In the country,
which have the most reputed airlines in the world, the Full-service carriers
Etihad and Emirates airlines, along with two low-cost carriers Air Arabia and
Fly Dubai operating a huge network. The key strategies used by these LCCs to
reduce the ticket prices is the use of homogenous and young fleet of aircrafts
(Boeing 737- 700/800 or Airbus 320), requiring less maintenance; standard class
seating with limited no. of galleys and toilets; variable in-flight service (no
free meals-on purchase); zero ground time and point-to-point flights enable to
maximize daily block hours leading to aircraft utilization. The mentioned
factors however guide to the part how airlines reduce the ticket prices. In
this study, the passengers buying behavior factors are analyzed. Generally,
there is a notion that travellers in LCC airlines have booked the tickets
because of the reduced price. These reduced-price tickets are subject to
availability and highly priced during the seasonal holidays. Besides the
cheaper tickets, there are factors that influence the air passengers to travel
using an LCC.

The first
chapter introduces the topic of the research study and provides a study on the
LCC airline industry in the UAE. The chapter then progresses on the next part;
the main cause for the research issue is extracted. The last section of this
chapter presents the research’s purpose statements, explains the supporting
research questions, the limitations and delimitations, and the
assumptions. 

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1.1.    Background to the Project

 

The idea of this research project was raised from the growing popularity
of low-cost carriers in the GCC region over the last decade. The common belief
build-up is that LCC’s have been able to attract large share of price sensitive
passengers from the legacy airlines in the country, while they are also able to
benefit new travelers with their reliable services and low fares. Main consideration
is given to leisure and business travelers, as well offering festival seasonal
discounted tickets attracted by low-income expatriates. Always, the price
factor is analyzed as the main determinant for the LCC travelers, while more
factors influence a passenger’s airline selection towards LLC. These
influencing factors might involve many other supporting reasons for a passenger
to travel by LCC airlines. Fundamentally this is going to be a study on the
consumers buying behaviors and their interests. The passengers travelling by LCC’s
in UAE will be surveyed to attain their feedbacks. This study will provide
recommendations for the airlines; a deeper knowledge of passenger’s influences
will be calculated.                                             

1.2.    Research Objectives

 

In this
research project, five research questions are drafted to perceive how the consumers
buying behavior, influences their airline selection for an LLC in the region,
which have grown successfully in the last decade comparing with the
Full-service models. 

1. To examine
five or more factors influencing the passenger’s airline selection towards LCC
in the UAE airports.

– Investigating the influencing
factors of passenger’s selection of traveling by an LLC. It will include many
supporting factors according to the desires of the travelers, while many will
produce similar approvals.

2. To
reflect on how those influencing factors, affect the air traveler’s airline
selection.

– Reflecting those analyzed
influencing factors, on how they affect the passenger’s airline selection. This
will be a differentiation upon both the LCCs, which affects the traveller’s
selection.

3. To
synthesize the above-mentioned factors and affecting influence for better
development plan.

– After
combining the influencing and affecting factors of traveller’s airline
selection, these can lead to recommendations. This research question is
considered as recommendation in the conclusion part of the study.   

4. To
compare the competition between Low-Cost carriers and Full-Service carrier’s
services in the UAE.

– In the
country, which is dominated by FSCs- Emirates airlines and Etihad airways;
LCCs- Fly Dubai and Air Arabia have many comparisons. Initially, presenting a
comparison between FSC and LCCs, and then differentiating with the growth.  

 

5. To develop growth analysis of
the listed LCC’s in the region.

-Air Arabia and Fly
Dubai are the listed LCC’s of UAE; both the airlines have had a tremendous
growth during the past years. This growth analysis will produce a detailed
success chart from the introduction till date and produce the future plan for the
airlines.  

1.3.   
Overview of This Report

 

The study is structured
into five main parts, starting from research idea origin to ending with
conclusions and recommendations for passenger’s airline selection regarding
LLC’s. The report is divided into sections starting from Introduction- the
unveiling of the research topic, its objectives and aim, discussing the
research methodology going to be used in finding the required knowledge,
presenting the secondary data available according to the topic and research
objectives, submitting results from the primary research conducted- questionnaire
survey, analyzing the results and discussion of public feedback, providing
valid conclusions for the topic and recommendations for the future growth of
LLC airlines. The main sections of the report end, while afterwards the
references/bibliography and appendix are attached with the supporting
materials.