The Research Of Low Cost Strategy For Spring Airlines

The Southwest Airline of America firstly introduced the concept of lowcost operation to the civil aviation industry in1978. During the followingmore than30years, the low cost airlines developed rapidly throughout theAmerica and Europe. The competitive price and the simplified servicesattract more and more people choose to travel by air. When the other Chineseairlines are discussing feasibility of low cost operation in China, SpringAirlines a new private airline born in2004, became the first person to trytomato, and announced it would be the first low cost airline in China.Firstly, this thesis introduced the background and operation profile ofSpring Airlines, and its problem need to solve.Then author analyzed the external environment of Spring Airlines as perPEST model, competitive environment based on5competitive force modelof Michael E. Porter, internal environment from resource and capabilityaspect. And author also did a case study of low cost airlines in the world.Based on the above analysis, author did the strategy match in SWOTstructure, and got strategy of Spring Airline should be the overall costleadership based on segment marketing focus.At last, author listed the detail strategy implementation plan compared tothe Spring Airline existing strategy including operation management, brandcognition, customer relationship, procurement optimization and riskmanagement, performance appraisal. It is a valuable reference to the actualmanagement.