Mohsin Azhar Shah

(Group Leader)

BAM-9205 BAM-9207
BAM-9210

Saqib Mehmood
Saad Shoaib

Arslan Aslam
Ibrahim Tariq

BAM-9234
BAM-9239

Low Cost Carriers of Australia

 Australia

is a country, an

island, and a

continent
It

is the 6th largest country in the world is considered a developed nation

Australia It It

has the world's thirteenth largest economy

is known for a high life expectancy, its education, quality of life, biodiversity and tourism

It is located in Southern Hemisphere between the Indian Ocean and the South Pacific Ocean Its major cities are Brisbane, Sydney, Perth, Melbourne, and Adelaide Its Capital city is Canberra. Population: 17.5 million Australia is home to many animals like kangaroos and koalas, sharks and thousands of different types of tropical fish

 Compass

Airlines (1990)

Impulse Airlines (1992) (Acquired by Qantas and rebranded as Jet Star)

Virgin Blue Airlines (2000) (Transitioned into a full-service airline, now known

as Virgin Australia)
Jet

Star Airways (2003)

Airways Australia (2007)

Tiger

 LCC

is a relatively new phenomenon first emerged internationally in the 1980's as a consequence of Airline Deregulation first low cost airline, Compass Airlines, began operations in 1990, and collapsed around a year later

Australia's

 Compass

I was Australia's first low cost airline. It was established after deregulation of Australian Aviation industry in 1990

 Compass

Airlines, later referred to as Compass Mk I was founded and started operations in 1990 in Australia Mk I was established by Bryan Grey, who had previously run regional airline named East-West Airlines

Compass

At its peak Compass Mark I operated five leased Airbuses. Two of them were leased from British charter carrier Monarch Airlines Compass Mk I collapsed little more than a year after its first flight, Due to: Undercapitalization Sustained fare discounting by the competitors and failing to make use of its potential to also carry freight Not provision of suitable facilities by government (a dispute with the Govt.)

1. 2.

3.

 Compass

Airlines initial operations were also significantly disrupted by what appeared to be a computer attack on their reservation system 20 December 1991, Compass Airlines was grounded

On

Compass Mk I Airbus A300B4-605R..4

Airbus A310-304.1

Compass Mk II was conceived as Southern Cross Airlines but chose to trade under the Compass brand, which seemed to have popular support It commenced operations five McDonnell Douglas aircraft in 1992 with

It collapsed less than a year later in 1993 Southern Cross chairman Douglas Reid was convicted in 1997 of theft and false accounting amounting to $10 million in relation to the collapse. He received a record 10 year jail sentence

Compass Mk II McDonnell Douglas MD-82.3

McDonnell Douglas MD-83.2

Tiger Airways Australia Pty Ltd is a wholly owned subsidiary of Tiger Airways Holdings Limited, which is publicly listed on the Singapore Exchange

It is a subsidiary of Tiger Airways Holdings, a Singaporebased company, which is owned partially by Singapore Airlines

 It

commenced services in the Australian domestic airline market on 23 November 2007 airline is based in Melbourne, Victoria, with its main base at Melbourne Airport

The

On 16 March 2007 Tiger Airways Australia Pty. Ltd. was incorporated in the Northern Territory, although the company is based in Melbourne, with Melbourne Airport being the airline's major hub Five aircraft and A$10 million were committed to start the subsidiary Tiger Airways Australia's first scheduled flight was TT 7402, which departed from Melbourne for the Gold Coast on 23 November 2007

 Australian

government policy and legislation currently permits airlines that are 100% foreign-owned to operate domestic airline services within the country international airlines are still subject to ownership rules that limit foreign ownership to 49%

Australian

 Tiger

undertook the final stage of Australian regulatory procedures on 20 November 2007 received its Air Operator's Certificate on 22 November

Tiger

 The

airline's business model is based on that of sister airline Tiger Airways, which attempts to increase the total market size (number of passengers), control operating costs, and maximize the number of sectors served way it planned to keep costs low was by avoiding expensive airports

One

 As

of October 2012, the Tiger Airways Australia fleet consists of the following aircraft with an average age of 4.3 years

 Tiger

announced on 3 April 2009 their intention to launch in the Melbourne Sydney market, the fifth busiest passenger route in the world, signaling an end to its operational policy of avoiding expensive airports

 The

airline provides the free Tiger Tales in-flight magazine and a buy on board program serving snacks, soft drinks, beer and wine for purchase

 The

airline provides the free Tiger Tales inflight magazine and a buy on board program serving snacks, soft drinks, beer and wine for purchase June 2010, Tiger implemented a "cashless cabin" environment, in that it only accepted Visa or MasterCard for onboard purchases. This new method was later dropped

In

 The

arrival of Tiger Airways Australia in the market resulted in varied responses from its primary competitors, mainly Qantas (and its subsidiary Jet Star Airways) and Virgin Australia fares began to drop as special offers and other promotions were launched

Air

 When

Tiger released its first route Melbourne to Darwinat a price of A$79.99, Jet Star immediately undercut the price, offering fares of A$79 on the same route over the same period Tiger released its second route Melbourne to Gold Coastat a price of A$49.95, Jet Star again undercut the price, offering A$39 fares on the route over the same period

When

 Tiger

Airways Australia celebrated its first anniversary on 19 November 2008 with a "Free Seats" campaign, which resulted in 100,000 seats on sale, of which half sold out within the first few hours airline celebrated its second birthday on 23 November 2009 with thousands of seats on sale for A$2

The

 On

7 March 2012, Tiger Airways announced that it will reopen a second base at Sydney Airport 4 September 2012 Tiger Announced they were resuming flights from Melbourne to Adelaide, beginning from 1 November 2012 18 December 2012 Tiger will begin direct return flights from Mackay to Melbourne and Mackay to Sydney

On

On

Impulse Airlines was an independent airline in Australia which operated regional and low cost services between 1994 and 2001.
It was acquired by Qantas in 2001 and later became Qantas' low-cost airline named as Jetstar.

 Impulse

Airlines was established and started operations in 1992. Impulse Airlines was based in Newcastle.
Airline's Managing Director was Gerry McGowan until the McGowan family sold the airline to Qantas in 2001.

The

In June 2000 the airline acquired Boeing 717 jet aircraft and commenced operations as a low-cost airline on Australia's eastern routes in direct competition with Qantas and Ansett

 In

April 2001 Impulse and Qantas came to an agreement where Impulse would wet lease all their services to Qantas would market the routes and give Impulse a cash injection would have a further option to buy out the Impulse Airline

Qantas

Qantas

 Impulse

Airlines ceased operations on 24 May 2004 was used as a vehicle upon which Qantas' low-cost airline Jetstar was launched started operations on 25 May 2004. brand was

It

Jetstar

Consequently,

the Impulse replaced with Jetstar

Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue (now known as Virgin Australia) The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne The airline was established by Qantas in 2003 as a low-cost domestic subsidiary

Parent company Qantas also has stakes in sister companies Jetstar Asia Airways
1. 2. 3.

Valuair in Singapore Jetstar Pacific Airlines in Vietnam New upcoming carriers in Asia Jetstar Japan and Jetstar Hong Kong

Jetstar commenced international long haul flying in November 2006

Jetstar is currently the third largest domestic Australian airline (by market share) and fifth largest international airline (by capacity share) serving international routes toand-from Australia. In the first half of the 2012 financial year (July to December 2011) Jetstars Australian domestic operations carried 5.4 million people

 Both

Tiger Airways Singapore and Tiger Airways Australia are also major competitors to Jetstar in the low-cost market shares its parent's strong competition with Australia's biggest low-cost carrier Virgin Australia
provides employment to around 3,000 people in Australia.

Jetstar

Jetstar

On 4 October 2006, Jetstar became the first Australian airline to allow customers to select their seat upon booking In November 2011, Jetstar became the first airline to offer passengers iPads which are pre-loaded with movies, games and magazines, on flights over two hours duration

Aircraft have seat back entertainment screens

On all domestic routes Jetstar has a buy on board single class service offering food and drinks for purchase

 On

international routes, Jetstar offers a two-class service Business class Passengers, service is inclusive of all meals and beverages, inflight entertainment, and includes an increased baggage allowance of 30 kg Class Jetstar offers either prepurchased meals on board or buy on board service with food and beverages

For

Economy

Jetstar has been the undisputed low cost leader in recent times.

Virgin Blue Airlines, now known as Virgin Australia Airlines, is Australia's second-largest airline Virgin Australia was launched as Virgin Blue in August 2000, with two aircraft, one leased from then-sister airline with single route After one year the airline has grown to directly serve 29 cities in Australia from hubs in Brisbane, Sydney and Melbourne, using a fleet of narrow-body Boeing and Embraer jets; and Airbus and Boeing wide-body jets.

After several years operating as a low-cost carrier it improved its services to become a so-called (self-described) "new world carrier" essentially a business model with aspects of the "no frills" approach of low-cost carriers but offering services more in line with full-service airlines

Virgin Blue previously used a familiar formula pioneered by airlines such as Southwest Airlines and Ryanair eliminating costs such as included in-flight meals and printed tickets in favour of selling food on-board and using telephone and internet booking systems It also cut costs in the past by limiting the number of airports serviced and by operating one type of aircraft, the Boeing 737

Virgin Blue gained extra revenue (and publicity) by painting two aircraft as "flying billboards". One promoted a brand of men's razor, the other a Queensland Government campaign to attract businesses to the state

 In

February 2007, Virgin Blue signed a two-year sponsorship deal with NRL team the South Sydney Rabbitohs Australia is also the official sponsor of the National Basketball League (NBL)

Virgin

 In

2008, Premium Economy Class was introduced throughout its entire fleet premium product offered priority checkin, larger baggage allowance, lounge access, priority boarding, increased legroom and allinclusive in flight entertainment and meals or beverages on board product was aimed at business and corporate customers

The

The

To capture a share of the business traveller market, Virgin decided to provide a members' lounge facility for travellers. Originally this was called The Blue Room and provided facilities to members and guests on a pay-as-you-go basis In 2006, Virgin revamped the lounge facilities and re-launched the product as The Lounge, which offered all-inclusive facilities on a membership fee or casual fee basis. Upgraded facilities provided included buffet food and refreshments, newspapers, showers, computers, and WiFi internet access for travellers.

In December 2006, Virgin Australia announced a partnership between Australian cable television providers Foxtel and Austa r, to introduce a "Live2Air" service on most flights by mid 2007. The Live2Air system is only available on selected Boeing 737 aircraft, and is in the process of being phased out

 Fleet

of Virgin Blue Airlines compromised

of
Airbus A330-200.. 5 Boeing 737-700 4 Boeing 737-800 59 Boeing 777-300ER.. 5

Embrear E-190AR... 18

Most of the practices that are being implemented in the Australian LCCs, can be practiced in the Pakistans environment The LCCs in Australia preferred to use airports with less service charges, the same should be practiced in Pakistan, i.e. using secondary airports Differentiation strategies that should be adopted include introducing the concept of more than single class, like introducing Premium Economy class Another strategy that should be adopted is providing in-flight meals and lounge services on demand with additional charges