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  • Essay / Porter Airlines Case Analysis

    Porter Airlines aims to provide “convenience, speed and service” to frequent, time-pressured business travelers on short-haul flights, competing on brand, location and its level of service. Thanks to its low-cost structure, Porter can offer a quality journey to its customers. As the only airline at the Toronto City Center Airport (TCCA) island airport, it can offer a shorter travel time to the airport, faster check-in and security lines. short, as well as faster turnaround time, a free shuttle between Union Station and the ferry to TCCA. , online registration.Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get an original essayPlus, Porter offers premium terminal amenities and customer service: a free baggage allowance of two checked bags, one hand baggage and one personal item; Free wireless internet, conference room, computer room, free refreshments and drinks, business center and licensed restaurant on site in the terminal building. They also offer complimentary in-flight drinks and snacks, hotel and car rental arrangements, and limousine and taxi service. To keep their costs low, Porter has implemented the following methods: They operate a fleet of one aircraft (Bombardier Q400S) with Pratt and Whitney PW150A. engine like their plane, which is ideal for short-haul flights. It has smaller airfields, lower cruise altitudes, lower maintenance costs with high utilization, a maximum cruise speed of 414 miles per hour, lower pilot and flight attendant pay rates, fees lower airport costs and, more importantly, its fuel consumption and emissions level are 30%. Approximately 40% less than a comparable regional jet. Additionally, with its low cost and high efficiency, this aircraft also provides an excellent customer experience. The Q400S is the quietest turboprop, its ANVS system has significantly reduced its cabin vibrations and noise, increasing passenger comfort. In addition, it also adopts paperless tickets, employs non-union workers with lower pay rates, lower costs in pilot training, maintenance and spare parts. inventory; it also requires secondary airports, which represents a massive reduction in landing costs. Porter Airlines targets professionals with time-sensitive work, primarily origin-destination business travelers who have traveled to or from Toronto for short business trips of 1-5 days. These travelers tend to book more at the last minute and are willing to pay more for time flexibility. Thus, Porter offers frequent flights, three fare classes that offer a range of free change and cancellation options, attractive to their targeted consumer segment. Additionally, the number of leisure travelers is also increasing; for them, flying with Porter Airlines gradually became a mark of social status. Rather than focusing on low prices, Porter uses its efforts to build its brand. He wants to create a “high-end” image, from the design of the lounge to the staff uniforms and glassware on the plane. Porter Airlines has many competitive advantages. Its prime location, TCCA, is conveniently located adjacent to downtown Toronto, with a value proposition that is very much in line with its targeted consumer segment (serviceconvenient, free shuttle, lounge). Currently, it is also the only airline operating at TCCA. Its low-cost structure, short turnaround times, free change and cancellation policies, and frequent flights are also part of its competitive advantage. The aircraft fleet used (Bombardier Q400S) also corresponds to its cost structure and level of utilization. As I mentioned above, Porter's premium amenities are really important to its target customer base. First of all, as I mentioned above, its location greatly reduces travel time for business travelers and offers free and convenient shuttles to TCCA, which is their main advantage. Secondly, frequent flights and three fare classes with a range of free changes and cancellations offer their customers more flexibility in their choices.time, in case of conferences, meetings and prolonged traffic, etc. Third, free wireless Internet and conference room provide convenience for business travelers while they wait for boarding; the plane is less noisy, snacks and drinks in the lounge and in flight also increase the level of satisfaction of their customers. Their partnerships with hotels and car rental companies, as well as taxi and limousine services, have also improved convenience. Their value proposition of providing convenience, speed and service has successfully met the needs of their customers. Internal competitive rivalry in this market is intense. There are many small, low-cost competitors, but as Porter focuses on a highly segmented market, the threat from these small competitors is comparatively lower. But Air Canada is present on the market and can wage a long period of price war; For now, Air Canada is focusing its service and competition at Pearson Airport, but it did not expect new entrants into the TCCA space. The threat of new entrants to this market is low; barriers to entry are high: high capital requirements, licenses and numerous government regulations; but once the company entered this market, the threat of new entries became low. The threat of substitutes is low: for domestic travel, travelers can choose to drive or take the train; For long distance travel, options other than flight would be sea transport, but these alternatives are extremely time consuming and therefore the threat is low. Bargaining power of buyers is low to moderate, and despite the number of low-cost airlines, Porter offers a unique value proposition to its targeted customer segment with quality service. There are also customer switching costs in the frequent flyer points and membership system. Since Porter uses the Bombardier Q400S as its fleet of single aircraft, they do not have a choice of aircraft, and Bombardier can offer Porter a fixed price to purchase 10 additional aircraft with no discounts. The bargaining power of suppliers is therefore high. The external problem and constraints that Porter is facing could be analyzed through PEST analysis. To begin with, TPA (Toronto Port Authority) limited TCCA's service to short-haul flights only 500 nautical miles from Toronto, which limited Porter's service area and expansion opportunities. To deal with service region restrictions, Porter only uses the Bombardier Q400S as its aircraft, which is ideal for short-haul flights. Additionally, the Air Canada Jazz lawsuit is ongoing. Therefore, Porter must be aware of the..