Research Korner: British Airways Case Studies

Everyday Spoken English is ‘Formless and Unstructured’

Everyday Spoken English is ‘Formless and Unstructured’     Language has been a part of each nation enabling people to communicate systematically through sounds and conventional symbols. It embodies our cultural identity and heritage and makes it possible for us to reach out to others, express our diverse ideas, build interpersonal relations, shape our thoughts, explore our customs and construct laws. In giving light to the claim that everyday spoken English is ‘formless and unstructured’ the relationship between and among language, culture, and past and shared experiences and activities were analyzed using the informal conversation between Pip and Phyllis to illustrate the characteristics and function of everyday spoken English by highlighting the evident structures of informal talk along with the excerpts from the transcribed conversation between the couple to present examples of why everyday spoken English appear ‘formless and unstructured’.     Dimensions, Systems and Functions of Language According to  (1978) communicative competence includes both knowledge for and ability for language use.  (1980), and  (1986) state that there are four dimensions of communicative competency: grammatical competence, sociolinguistic competence, discourse competence, and strategic competence. One of the most important aspects of the communicative approach of language is that it pays systematic attention to functional as well as structural aspects of language (1981). However, some old customs have to be transformed and people adapt to these changes and learn other practices, including the language they speak. Thus, a linguistic repertoire is created wherein a set of language varieties is demonstrated in the speaking and writing patterns of a certain speech community.    (1999) claimed that “language takes meanings from the context in which it is used and in spoken language, the distinctions between language and context, and language and culture begin to blur” (p. 5). Linguists normally describe informal conversation as disorderly due to the inexplicit use of language, randomness of the topics discussed, lack of structure  and ‘errors’ compared to formal language. These make everyday talk appear hesitant, ambiguous, and full of half-finished sentences and interruptions (1999). The framework developed by  (1973, 1975) explains the seemingly formless and unstructured language by identifying the functions and purposes of language use relative to the social context and cultural environment.   Halliday’s framework highlights the social and cultural use of language as it adapts to the demands of the society making it multi-functional. He presented seven functions of language as the following: (1) instrumental, (2) regulatory, (3) interactional, (4) personal, (5) imaginative, (6) heuristic, and (7) informative. The instrumental use of language is evident when it is used to get things done and satisfy needs, its regulatory use is evident when language functions as a means of control or authority over other’s behaviors, the interactional function is used to form or maintain social relationships, language’s personal use could be a way to express emotions and thoughts, its imaginative function is relevant when creative expressions are illustrated while its heuristic function highlights knowledge-seeking use of language and its informative function can be illustrated when informing others (1996).     Pip and Phyllis who have been married for 46 years were asked to fill out an evaluation form for the tour company they traveled with during their holiday break in Rome. Examples of Halliday’s functions of language can be illustrated using the conversation between Pip and Phyllis.   ·   instrumental Phyllis: [mm] [Yes…] Well if you read the letter / I think the girl that greeted us at the airport / We should / She should have mentioned it / If you look at the letter again / But she was chattering with somebody. Most likely / She had the leaflet because it was company / I saw the coaches (…) Pip: mm… A leaflet like the one… Phyllis: Yes. Her company and she didn’t. I think that was a mistake.   ·   regulatory Phyllis: Let’s start our self with, uhmm … Pip: Let’s start our self with the resort / I don’t call Rome a resort. But still that’s what it says, resort.   ·   interactional Pip: Uhmm… One thing that bothered me a bit / The question of putting towels. Phyllis: Yes, it was a bit dirty, wasn’t it? Pip: [Yes.] Phyllis: It was awful in a way.   ·   personal             Phyllis: [Well the flight was excellent.] Pip: What d’ you say on the flights? The flight was excellent. I mean British Airways is not your favorite flight / compared with what we have recounted.   ·   imaginative             Phyllis: The room was nice. Pip: It wasn’t a very big room.   ·   heuristic Pip: You either have to book early on without knowing a great deal about ‘em. Or else when you get there you couldn’t book. That is practical to us. Well … Phyllis: it’s a different company. I think the one we went with was a much bigger company and it was more chaotic. We were in Paris that time. We have to struggle ourselves. No. I think that was great.   ·   informative Phyllis: ‘Cause it seems quite small. Pip: [Yes.] Phyllis: A bit noisy. But ... Phyllis: ‘Cause I have my earplugs. So that was okay.   Using the transcribed conversation between the couple it would seem that their everyday conversation appears chaotic and unstructured. But  this only goes to show that their shared experiences and cultural orientation enabled them to come up with conversational skills and techniques that they alone understand as a couple which may seem vague to other people who might participate in their talk.  The long years that they have been together enabled them engaged in collaborative conversations which illustrate their great deal of shared background knowledge. As such, the incoherent aspect of informal talk, of everyday spoken English in particular illustrates the cultural and social connectiveness between people along with the different uses of language as a social and cultural tool.             Structure of Informal Language Sacks, Schegloff and Jefferson (1974) explained that instances of interruption characterize collaborative activity between individuals during conversations. These are evident in everyday spoken language because informal conversations arise spontaneously out of fluid and changing everyday activities and relationships (1999). Informal conversation includes (a) any unfinished phrases or clauses; (b) one speaker cutting on the other jut before a transition relevance point; (c) duetting or both speaking together or collaborating to complete a phrase; (d) back-channel support or short agreements like ‘yes’ and ‘mm’; and (e) imprecise or implicit references which rely on their shared experience for understanding ().   (1983) identified five types of interruptions which include (1) smooth speaker-speech, (2) simple interruption, (3) overlap, (4) butting-in interruption, and (5) silent interruption. Meanwhile,(1975) classified interruption instances of simultaneous speech that began before the word immediately preceding a transition-relevance place in the speaker’s utterance while overlaps began at a transition-relevance place or immediately preceding the word highlighting their claims on indicators of conversational dominance. Nonetheless, the couple has been very effective in illustrating the features of collaborative conversation as characterized by several unfinished phrases and clauses, one speaker cutting the other, duetting as well as back-channel support and imprecise or inexplicit references while filling out the assessment form. Examples include the following excerpts:   ·         unfinished phrases and clauses 1.    Phyllis: Let’s start our self with, uhmm … Pip: Let’s start our self with the resort / I don’t call Rome a resort. But still that’s what it says, resort.   ·         one speaker cutting on the other 1.    Pip: mm… A leaflet like the one… Phyllis: Yes. Her company and she didn’t. I think that was a mistake. Pip: [Yes.] [mm…] [Yes.]   ·         duetting 1.    Phyllis: It’s the 27th of April / number of nights / four. Pip: [Right. April / number of nights / four.] Departure (…) Right. These are the categories: excellent, very good, good, fair, poor. Phyllis: [Well the flight was excellent.]   ·         back-channel support 1.    Phyllis: Well, it was very good. The receptionist was terribly helpful. Pip: [Yes, they were.]   2.    Pip: Uhmm… One thing that bothered me a bit / The question of putting towels. Phyllis: Yes, it was a bit dirty, wasn’t it? Pip: [Yes.] Phyllis: It was awful in a way.   ·         Imprecise or inexplicit reference which rely on shared experience 1.    Phyllis: it’s a different company. I think the one we went with was a much bigger company and it was more chaotic. We were in Paris that time. We have to struggle ourselves. No. I think that was great.   2.    Phyllis: [mm] [Yes…] Well if you read the letter / I think the girl that greeted us at the airport / We should / She should have mentioned it / If you look at the letter again / But she was chattering with somebody. Most likely / She had the leaflet because it was company / I saw the coaches (…)   From these excerpts, it is evident that the couple who engage in informal everyday talk illustrate the ‘formless and unstructured’ everyday spoken English; ‘formless and unstructured’ in the sense that their shared knowledge and cultural orientation as well as shared activities in the past were able to supply them information that necessitated relatively comprehensive exchange of words.           Gender Differences in Language             Researches on gender and discourse argue that males and females grow up in different cultural environments and develop different habits for signaling their intentions and understandings since they learn their styles of talking in sex-separate peer groups (1990;  1982). Hence, men and women develop different norms for establishing and displaying conversational involvement which account for the differing conversational patterns and mutual negative evaluations as a result of cross-gender interactions ( 1996).   The first chapter of the Audiovisual Notes also claimed that men most often than not control conversations that involve male and female participants by introducing topics for discussion as well as through minimal conversational support.   In the recorded conversation, Pip was the one filling out the evaluation form initiating questions that directed the discussion and formed the structure of the conversation. However, analyzing the transcript and flow of conversation between Pip and Phyllis, it was evident that Phyllis was able to portray more in control of the discussion by taking the lead and elaborating the topics introduced by Pip. During the conversation, it can be observed that Phyllis was able to share more information and was also able to air interruptions to insist her assessment on things being discussed.     English in Hong Kong English, being the universal language has been the focus of a lot of researches in the field of linguistics. They are particularly interested on how English is being transformed as well as used in other social settings particularly in communities that use other languages as the primary mode of speech. Taking the perspective of Hong Kong conversational language,  (1999) highlighted the importance of understanding social and cultural norms in the region for a foreign person to adapt easily to the lifestyle and social environment of the locales. They pointed out the role of newspapers and its circulation in the community which defines and distinguishes literate individuals and common characterization of the Hong Kong people. They argued the relevant connection and interrelatedness between and among the concepts of writing, reading, comprehension, literacy that facilitate the effective and efficient function of language.       Moreover,  (1995) investigated the changing use of the English language during job interviews in Hong Kong. They explained why and how job interviews in Hong Kong at present do not necessarily require facilitating the interviews purely in English which was the norm before the 1970’s. They identified the different levels of English language comprehension between interview panel members who are composed of English-speaking foreigners as well as Hong Kong local associates. They were able to show how on certain localities, the practical use of language is valued more than the formal aspects of conversing and structure of English as a language. This study highly illustrated the relative conceptualization of formal English language use and supports the paper’s argument that a everyday spoken English only appear formless and unstructured because of the shared knowledge between individuals that supply for the language gaps that characterize informal conversation.          Conclusion             As was evident in the discussion, the claim that everyday spoken English language is ‘formless and unstructured’ only applies to the informal talk if the evaluation of such common language use is based on the rigid rules of syntax and grammar of formal English speech. The ‘formless and unstructured’ structure of informal conversation is only a result of the confounding and overlapping interplay of social relationships and shared cultural background and orientation of the individuals involved. The universality of the English language resulted to different and differing use of the said language relative to the context of the people using it. Whatever the case maybe, informal talk or conversational English has form and structure that serves the effective and efficient communication to its users in each and respective of the socio-environmental context and setting they are in.           Transcript of the Conversation   Pip: Well, it’s so often that one has to complain. Phyllis: [That’s right.] Pip: ‘Bout a holiday that (…) makes a change / that we can say / well / with how we enjoyed it (…) Phyllis: Let’s start our self with, uhmm … Pip: Let’s start our self with the resort / I don’t call Rome a resort. But still that’s what it says, resort. Phyllis: [Well, it can / yes.] Pip: (…) visiting until that and the language (…) I can’t remember that. You’ll have to remember that. Phyllis: It’s the 27th of April / number of nights / four. Pip: [Right. April / number of nights / four.] Departure (…) Right. These are the categories: excellent, very good, good, fair, poor. Phyllis: [Well the flight was excellent.] Pip: What d’ you say on the flights? The flight was excellent. I mean British Airways is not your favorite flight / compared with what we have recounted. Phyllis: [British Airways.] [Yeah, it wasn’t.] Pip: Yeah, it was very good. Excellent. Phyllis: [Yeah, it was good. We give them extra.] Pip: Ferry or rail / we didn’t have (…) Phyllis: Hotel. Pip: Hotel Solis. Phyllis: Well, it was very good. The receptionist was terribly helpful. Pip: [Yes, they were.] Phyllis: The room was nice. Pip: It wasn’t a very big room. Phyllis: No. I put excellent for services and room, good. Pip: Very good? Good? Phyllis: [Good.} Good. Pip: [Yeah.] Phyllis: ‘Cause it seems quite small. Pip: [Yes.] Phyllis: A bit noisy. But ... Pip: mm Phyllis: ‘Cause I have my earplugs. So that was okay. The departure airport… Pip: Uhmm… One thing that bothered me a bit / The question of putting towels. Phyllis: Yes, it was a bit dirty, wasn’t it? Pip: [Yes.] Phyllis: It was awful in a way. Pip: You either have to book early on without knowing a great deal about ‘em. Or else when you get there you couldn’t book. That is practical to us. Well … Phyllis: it’s a different company. I think the one we went with was a much bigger company and it was more chaotic. We were in Paris that time. We have to struggle ourselves. No. I think that was great. Pip: Well, that’s right. Phyllis: Yeah. I think that was. It was very, very successful. Pip: mm… So in the past you said something ‘bout the towels and we / (…) would have like more information about… Phyllis: [mm] [Yes…] Well if you read the letter / I think the girl that greeted us at the airport / We should / She should have mentioned it / If you look at the letter again / But she was chattering with somebody. Most likely / She had the leaflet because it was company / I saw the coaches (…) Pip: mm… A leaflet like the one… Phyllis: Yes. Her company and she didn’t. I think that was a mistake. Pip: [Yes.] [mm…] [Yes.] Phyllis: But otherwise, I thought she was great.

Everyday Spoken English is ‘Formless and Unstructured’

Everyday Spoken English is ‘Formless and Unstructured’ Language has been a part of each nation enabling people to communicate s...

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in the world. Marketing executives should also be competitive to cope with the challenges of this kind of business. Cathay Pacific is one of the market leaders in the airlines business in Asia. The company has it great opportunities. The airline is committed to quality service. In addition, it has its competitive advantage. Cathay Pacific has great opportunities of expanding and improving its services. This paper is a business plan for Cathay Pacific Airways to exploit the business opportunities that are open to the company.   Business Background Cathay Pacific Airways Limited is an Asian commercial airline founded in 1946 which is based in Hong Kong and offering passenger services and cargo services to 102 destinations world-wide. It is a flag carrier of Hong Kong with its main base at Hong Kong International Airport. Cathay Pacific is the major shareholder in AHK Air Hong Kong Limited, an all cargo carrier that offers scheduled services in the Asia region, and is a shareholder in Hong Kong Dragon Airlines Limited.  “The airline business is a challenging operation. Operational information can be very dynamic and keeping customers well informed is a daunting task. Information, fares and schedules have to be accurate; sales promotions and marketing activities are constantly changing and typhoons cause last minute schedule changes or cancellations.” ()   The opportunity and strategy Despite the various challenges in which airlines faces, there is an opportunity for e-business. It has been known today that travel and the Internet have a natural association. Cathay Pacific Airways has the potential of this partnership and be successful in consumer e-commerce. In 2000, Cathay Pacific Airways forged ahead with an ambitious goal to become Asia’s leading e-business airline and promptly set up a new cross-functional department staffed by experienced airline people and newly recruited e-business professionals. Cathay Pacific Airways is committed to invest in services that enhance value to their customers while improving productivity and reducing information technology costs. With this, the company has leveraged to e-business. Cathay Pacific Airways is known to be Hong Kong’s leading airlines gives them the opportunity to acquire more customers and generate more revenues. People would have more confidence on airlines that are recognized by the award winning bodies because it would make the people have more confidence on flying with the said airlines. In addition, with Cathay Pacific Airlways’ online booking, they give more convenience to their customer giving them the chance to attract more customers especially with people that have no time to go to airlines branches for bookings.  The airline has also an opportunity of technology advancement for easier transaction and operations and for more convenience for customers and employees. Moreover, with its recognition, the airline attracts more opportunities of expansion.             Furthermore, the company has design learning experiences for the employees to deliver consistent good services to customers. The company has encouraged a culture of self responsibility, courage to innovate and openness to collaborate within the organization. Additionally, e-learning strategy cut the time required for certain training courses. ()             The online brand building technique has also been a good strategy for the company. “The airline's approach towards reaching its audience by building online partnerships with leading brands such as Universal McCann, CNN, Yahoo! and ZUJI.com has made it one of the major online marketers in Hong Kong and across the Asia Pacific region.”() Source of competitive advantage The source of Cathay Pacific Airways competitive advantage is from the continuous dedication to high-quality service which has elevated the company to new heights of success in the highly-competitive airline industry. In addition, Cathay Pacific has always relied on Information Technology (IT) to meet their infrastructure demands while gearing up its internal operations for efficiency. IT provides the airlines with two distinct advantages—an efficient reservation system and an engineering system that keep the airlines' planes constantly fit for air travel. “Cathay Pacific is renowned for its award winning “Service Straight From The Heart” both on the ground and in the air. As the airline of Hong Kong, Cathay Pacific is committed to enhancing Hong Kong as a leading global aviation and logistics hub.” (www.citrix.com) Management Background, Qualities and Experience Name Position Background and Experience Senior Management   Chairman CBE, joined John Swire & Sons Limited in 1978 and has worked with the group in Hong Kong, Australia and Papua New Guinea. He is also Chairman of Swire Pacific Limited and John Swire & Sons (H.K.) Limited, and a director of Swire Properties Limited. He served as Executive Director of Swire Pacific’s Trading and Industrial Division from 2000 to 2005.   Chief Executive He joined Swire in 1977 and has worked with the group in Hong Kong, Mainland China and the Asia Pacific region. He has been a director of Cathay Pacific since 1997 and was appointed Chief Operating Officer in 1998. He served as Chief Executive of Hong Kong Dragon Airlines Limited from 1994 to 1997.   Chief Operating Officer He joined Swire in 1977 and has worked with the group in Hong Kong, Australia, the Philippines, Canada, Japan, Italy and the United Kingdom. He served as Director Corporate Development from 1996 to 2004 and is a Director of Hong Kong Aircraft Engineering Company Limited, Dragonair and Air Hong Kong.   Finance Director He joined the Swire group in 1979 and in addition to Hong Kong, he has worked for the group in Japan, the United Kingdom and the United States.   Director Flight Operations He oversees all aspects of the airline's global flight operations. He has worked with the Group for more than 22 years, including the past five years in the Flight Operations Department as General Manager Aircrew. Derek Cridland Engineering Director He joined Cathay Pacific in 1982 and was previously employed by the International Civil Aviation Organisation (ICAO) and British Airways. He is also a Director of Hong Kong Aircraft Engineering Company Limited, Hong Kong Aero Engine Services Limited, and Associated Engineers Limited.   Director Sales and Marketing He joined Cathay Pacific in 1983 and has since held a variety of posts in the company. These include Country Manager for Malaysia and Brunei, Staff Manager for Outports, Manager for Passenger Product, Vice-President for Canada, and General Manager Cargo.   Director Personnel He first joined Cathay Pacific in October 1973 as a Cargo Officer, and has held a number of positions within the airline in the areas of cargo, airport services, and personnel. Augustus Tang Director Corporate Development joined Cathay Pacific in 1982 as a management trainee and has held several positions with the airline, including postings to Malaysia and Japan. He was previously Director Corporate Planning since 2000 and is also a Director of Cathay Pacific Catering Services Hong Kong Limited and Air Hong Kong.   Director Information Management His responsibilities include overseeing the strategic positioning and delivery of the airline's information management and technology needs.He has previously held positions as CEO of Tenzing Communications,providers of airline inflight email and SMS services,and CEO of Cathay Pacific's Catering Division.He has worked with Cathay Pacific since 1975.   Director and General Manager Cargo joined Cathay Pacific in 1984. He has held a number of managerial positions overseas as well as in marketing and sales and revenue management. He has been involved in loyalty marketing since January 1995, and launched the Asia Miles Travel Reward Programme in 1999.     Director Service Delivery joined Cathay Pacific in 1998 as Manager Corporate Communication, was appointed General Manager Inflight Services in August 2000. She has been a Director of Cathay Pacific Catering Services Hong Kong Ltd since September 2000. Non-Executive Directors Martin CUBBON Director of the Company He is also Finance Director of Swire Pacific Limited and a Director of John Swire & Sons (H.K.) Limited and Swire Properties Limited. He joined the Swire group in 1986.   Director of the Company He was appointed Deputy Chairman in January 1997. He is Managing Director of CITIC Pacific Limited.   Alternate Director to He is an executive director of CITIC Pacific Limited   Director of the Company He is also a Director of Swire Pacific Limited, Hong Kong Aircraft Engineering Company Limited and John Swire & Sons (H.K.) Limited. He joined the Swire group in 1970. HUGHES-HALLETT, James Wyndham John Director of the Company He is also Chairman of John Swire & Sons Limited and a Director of Swire Pacific Limited and Swire Properties Limited. He joined the Swire group in 1976 and in addition to Hong Kong has worked for the group in Japan, Taiwan and Australia.   Director and Deputy Chairman of the Company He is the Chairman of the Board and a Non-Executive Director of Air China Limited. He is also President of China National Aviation Holding Company.   Director of the Company He is Deputy Managing Director of CITIC Pacific Limited.   Director of the Company He was appointed Director of John Swire & Sons Limited in May 2002. He is also Chairman of P&O Ferries and Southampton Container Terminal ZHANG, Lan Director of the Company She is the Vice President and Chairman of the Commercial Committee of Air China. Independent Non-Executive Directors   Director of the Company He is Chairman of Hysan Development Company Limited and is also a Director of Hang Seng Bank Limited and SCMP Group Limited.   Director of the Company He is an Executive Director of The Hong Kong and Shanghai Banking Corporation Limited. He is a Director of Hang Seng Bank Limited and has been a Vice-Chairman and Chief Executive since May 2005.He is Chairman of HSBC Insurance (Asia-Pacific)Holdings Limited, and a Director of Bank of Communications Limited, Esprit Holdings Limited, Hong Kong Interbank Clearing Limited and Hutchison Whampoa Limited.   Director of the Company He is Deputy Chairman and Group Managing Director of PCCW Limited. He is also a Director of The Hong Kong and Shanghai Banking Corporation Limited.   Director of the Company He is Chairman of Orient Overseas (International) Limited.   Operational Plan Company mission and objective The company’s vision is to be the most admired airline in the world. To achieve that hallmark as a service leader, the company is committed to service enhancements that reflect its unique motto, “Service Straight from the Heart.” <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ensuring safety comes first </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing Service Straight From the Heart </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Encouraging product leadership </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Delivering superior financial returns </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing rewarding career opportunities</li> </ul> Distribution             Cathay Pacific weekly aircraft departures are estimated to be approximately 1,250 of 102 destinations in 35 countries. The reported passengers carried in 2005 reached to a total of 15,438,243 and cargo carried in 2005 reached to a total of 1,118,047 tonnes. Products Cathay Pacific Cargo operates scheduled long-haul freighter services to world-wide destinations that include Paris, Milan, Manchester, Brussels, Dubai, Dehli, Bombay, Sydney, Melbourne, Chicago, Los Angels and New York. Cathay Pacific Cargo also operate freighter services to Hong Kong-Tokyo-Taipei-Hong Kong six times a week, a direct freighter service to Tokyo and Seoul once a week. A freighter service to Sydney and Melbourne. Cathay Pacific Cargo arranges extensive trucking services within Europe, North America, Hong Kong, North-east Asia, Africa, Middle East and New Zealand. The services enable your cargo to reach destinations where Cathay Pacific does not fly directly. The Group's principal activity is the operation of an international airline. The Group offers scheduled cargo and passenger services to 102 destinations around the world. Other activities include airline catering, aircraft handling and engineering, provision of computerised reservation systems, ground and ramp handling, aircrew and financial services and property investment. Operations of the Group are carried out in Hong Kong, Isle of Man, Canada, the People's Republic of China and Bermuda.   Market Research and Analysis Target Customer             Cathay Pacific key target customers includes the multi-sector, premium, frequent international traveler.   Competitor and Competitive Edges Top competitors of Cathay Pacific include British Airways China Airlines, China Southern Airlines and Singapore Airlines. The main competitive advantage of Cathay Pacific is on their brand strength which is consistently good service and sophistication congruent with the world's greatest city. It has also ties in with Hong Kong image faultlessly. Cathay Pacific also offers superb services in ground to air. In addition, Cathay Pacific is dedicated to technological excellence for its products and services. It was one of the first airlines to provide inflight email. It also offers online ticketing and check-in, a downloadable timetable, and the notiFLY flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The iPermit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon arrival at Hong Kong International Airport. Its inflight entertainment system offers more than 20 video channels and an audio/video on demand system for First and Business class passengers. It was voted "World's Leading Use of Inflight Technology" in the World Travel Awards 2003 poll of 80,000 travel industry professionals.   Economic of the Business “Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the Boeing 747 made it convenient and affordable for people to travel further to new and exotic destinations. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists from the prosperous countries in Western Europe and North America. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. Business travel has also grown as companies become increasingly international in terms of their investments, their supply and production chains and their customers. The rapid growth of world trade in goods and services and international direct investment have also contributed to growth in business travel. Airlines' profitability is closely tied to economic growth and trade. Since then, airlines have had to recognize the need for radical change to ensure their survival and prosperity. Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability. To meet the requirements of their increasingly discerning customers, some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticketless travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. A number of factors are forcing airlines to become more efficient. The airline industry has proceeded along the path towards globalization and consolidation, characteristics associated with the normal development of many other industries. It has done this through the establishment of alliances and partnerships between airlines, linking their networks to expand access to their customers. Hundreds of airlines have entered into alliances, ranging from marketing agreements and code-shares to franchises and equity transfers. The outlook for the air travel industry is one of strong growth. Forecasts suggest that the number of passengers will double by 2010. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation markets.” (adg.stanford.edu) Marketing Plan Overall Marketing Strategy Cathay Pacific Airways marketing strategy is focused in terms of market achievements, marketing strategy and positioning, advertising and promotion campaigns, product development, design and package as well as after-sales service, according to a press release from the Cathay Pacific Airways.   Market Segments             Cathay Pacific Airways key target market is the multi-sector, premium, frequent international traveler.   Business Expansion – set up plan The foremost expansion plan of the company is to make the company a wholly owned subsidiary which will create significant value. PArt of their expansion plan is to increase existing stake in Air China. There is also a plan to further order a number of aircraft for delivery. In addition, additional services will be offered. A freighter service to Chennai and increased our frequency to Atlanta, Dallas, Delhi, Mumbai, Penang and Singapore will be commenced. Strategic thinking explores the big picture, delves into long term, broad and significant implications of a company and the industry or industries it operates in. Through this process it enables a company to respond to change swiftly, which is most critical factor for survival in this digital age. Microsoft for example was thinking strategically four years ago when it discarded its definition of its company as a PC company at a time when the Internet is beginning to make "personal computing" a losing bet. The day will come when people would not use PCs but just a Net connection, A Web application and Web-based application. It was not the financial resources that saved Microsoft. It was the ability to respond to changes in the industry. In fact, Microsoft's success today is attributed to its ability to respond to changes faster than its competitors. In a matter of few years, Microsoft has transformed itself from a proprietary content service, Microsoft Network (MSN) to development of separate Internet services which include its CarPoint car-buying service and Expedia services. It has further reinvented itself by creating a multimedia website or portal called MSN.com that also acts as a homepage for Microsoft's Internet Explorer. In anticipation of more free offerings by competitors, Microsoft has purchased Hotmail to add free services to its e-commerce offerings. Strategic planning and Analysis In facing an environment of increasing competition and abundance of opportunities, organizations have to think strategically of how best to tap into resources to capitalize on these opportunities. Strategic thinking enables organizations to determine the viable and more attractive opportunities to pursue. It enables organization to scan the environment for opportunities which they can capitalize on based on their strengths.   Counter threats Strategic thinking explores not only opportunities in the market place but also threats and potential threats in the industry. For example, for a long time, piracy in terms of cassettes, videos and CDs have plagued the music industry. And music companies have been undertaking their own strategies to combat this. Today, the music industry is facing yet another threat from the internet. Any Internet user can get into the Web and download music as digital signals into a computer. The battle field has now changed, there is no recorded CDs, cassettes or tapes. Sustain competitive advantage In this digital age companies need to find new ways to sustain competitive edge in their business. Prior to the advent of the internet, portals and homepages, established companies in various industries from automobile manufacturers to banking, insurance, telecommunications, travel agencies and supermarkets can rely on entry barriers such as high cost of entry, brand recognition, scarcity of distribution channels and limited resources as ways to sustain their competitive edge in the businesses that they have developed over the years. Today with unprecedented information exchange, we have digital sellers and buyers who can transact with one another over the Net through a click of the mouse. New Internet start-ups such as PCCW as mentioned earlier has taken over brick and mortar company like HKT. Strategic thinking is needed to find new ways to create competitive advantages in business. In fact, strategic thinking is needed to ensure the long-term survival of an organization. The real intellectual capital of organizations of this digital age, is the strategic thinking capability of its management.   Reinvent the industry Strategic thinking allows an organization to go beyond reengineering its processes. Restructuring and reengineering is not enough to sustain the competitive edge of an organization. To become industry leaders, organizations often have to reinvent the industry. Apple for example created an entirely new industry - the personal computers industry. And Time Warner, Electronic Arts and other companies are reinventing the education and entertainment industries and redefining them into the field of "edutainment". Restructuring and reengineering is about organization transformation. But organization transformation needs to be preceded by industry transformation. And to undertake industry transformation, leaders in organization need strategic thinking.   Future Plan Position for the future Strategic thinking allows the management to create the desired future of an organization. Through a process of strategic analysis and assessment of the opportunities in the environment, the management team can develop a common and a shared vision and strategy for the future of the company. It can help position the company to enable the company to grow. In fact, strategic thinking is needed to ensure that organisations survive in the future. In the future, the company is planning to build and operate on their own cargo terminal at Hong Kong International Airport with an eventual planned annual capacity of five million tonnes. This will enable the company to pursue aggressive cargo growth plans, make significant cost savings, introduce product innovation and strengthen Hong Kong’s position as a global logistics hub.

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in ...

Budget airline model

Introduction   Budget airline model is profitably used by low-cost carrier, also known as no-frills/discount carrier, that generally offers low fares but with the exemption of offering the traditional passenger services such as free meals and complementary drinks.  The concept of budget airline was coined in 1971 by  and  who introduces the concept of ticketless airlines. However, the credit is said to have been incorrectly given to Southwest Airlines since it was in 1949, emerges the first ever successful low-cost carrier, the Pacific Southwest Airlines.  Further, with the deregulation of aviation, the budget airline model spread to Europe in which, the most notable was that of the Ireland’s Ryanair that started its operations back in 1991 and the EasyJet four years after.             The budget airline model is entirely different compare with that of the traditional airline model.  To account one difference, for instance, is the difference in the pricing model they employ.  Airlines like the British Airways profited those early bird booking through reduction on the prices as the date of travel approaches, whereas in the budget airline model, profited those who booked early by raising the prices as the date of travel approaches.  Moreover, other diffrentiating characteristics of a budget airline model are that they have a single, one class passenger class, a single type of airplane used (the Air A320 or Boeing 737 models are commonly used),  the non-issuance of tickets that denotes the concept of “ticketless” airlines, a simple fare scheme, unreserved seating that describes the short check-in time, utilizes less congested secondary airports, offers simplified routes with emphasis on point-to-point transit instead of the hubs, the employing of direct selling via the internet, ergo, avoiding add-on fees and payment of commissions to travel agents or the computer reservations systems, employees and crews doing multitasking and lastly, budget airlines do not have the benefits of having free meals or entertainment on board, although, the budget airline offers an optional paid-for-in-flight food and beverages.             This paper, seeks to answer six questions in relevance to the implementation of a budget airline model and its applicability to the Asia-Pacific region following to the success of this model in the Europe and American market.  Specifically, it would answer questions that pertains to the implementation of the budget airline model in AirAsia.  Prior to answering the questions in this paper, it would be appropriate to give a snap-shot overview of AirAsia.   The AirAsia The emergence of AirAsia started as a full-service regional airline and has been considered as Malaysia’s second national airline, was re-launched in 2001, after the Tune Air Sdn Bhd, the holding company of AirAsia, officially accrued majority of the shares in AirAsia from DRB-Hicom and became the first Asia’s low-fare ticketless airline. AirAsia operations are reflected in its key strategies such that it embodies the endearing philosophy of “now everyone can fly”.  There are five key strategies being employed by AirAsia.  First, is the low fare, no frills concept in which it targets the customers who can live without the frills of free meals, frequent flyer miles or the luxury of an airport lounge but with an attractive low 80 percent price reduction offerings in the ticket price.  Second, is the flight guest convenience where guest are provided a variety of convenient means to book their flights either via the nationwide call centre, ticketless service, easy payment channels launched last 2002, the internet booking, reservations and sales offices, authorized travel agents and through customer service.  Third, is the frequent flights to assure that guest convenience are met, in which, AirAsia practices a turnaround of only 25 minutes.  Fourth is the safety first wherein AirAsia does not sacrifice the integrity of their airlines safety as part of cost optimization philosophy.  Fifth is the efficient cost optimization operations where they strives to maximize profit, just like any business, but with the provision of offering low fares at high quality service. In 2003, not only AirAsia became the first airline in Asia to introduce the use of SMS booking, but the first airline in the world.  The success of AirAsia is indicative of the recognitions and awards it had gained in the business world.  Among the awards that are given to AirAsia is the 2005 Market Leadership Award in Airline Achievement, Asia Pacific Low Cost Airline of the year, Best Managed Company in the Airlines and Aviation Sector, and so on.  Currently, AirAsia operates over 100 point-to-point both domestic and international flights from its hubs in Malaysia, Thailand and Indonesia.       Main Part Q1. What opportunities exist in the Asia-Pacific region for the entrance of new low-fare airlines? How might demand for low-fare service differ in the Asia-Pacific region and in North America and Europe? Some of the analyst had undermined the potential of low-carrier airlines in Asia saying that demographics do not support the low-carrier airlines because of the low levels of purchasing power, the existence of only few bilateral agreements that allows low-carrier airlines to operate between countries and too few satellite airports. However, despite of the negativities of some analyst, others believe that the offering of affordable international travel fosters the integration of Asia-Pacific region in general.  Contrary to the non-support of the opportunities of demographics, Axess Asia revealed that low fares are often the deciding factors for budget-conscious travelers in Southeast Asia.  Moreover, Mr. Ross form UBS says, that the region’s low average incomes should boost rather than constrain cheap fares demands.  With the emergence of low-cost carrier, it provides the less affluent Asians, an alternative means of traveling inexpensively.  The market of Pacific Asia region, specifically in terms of population, is vast such that the penetration of low-carrier airlines alone in China may generate promising great amount of profitability for any low-cost carrier airlines.   From the survey of 1999 with 19,000 British leisure passengers, it is evidently recommendable to choose the low-cost no frills airline compare with the other traditional European airlines.  The results for low-cost carriers yielded that when it comes to individual factors, such as the comfort, catering, cleanliness, and the like, they are surveyed the worst.  However, when in terms of the value for money, they are ranked the best.  Simply stated, the British passengers, no matter how unsatisfied they are in the individual factors, the low-cost that is being offered to them compromises to those unsatisfactory individual factors.  Similarly, the 'no-frills' scheduled carriers were also much more highly recommended than European charter airlines which like those, offer low fares but with frills ( 1999).  The difference in the demand for low-fare service between Asia-Pacific and Europe or that of the North America may not be too different.  In terms of the population, it would be evident to presume that population of the Asia-Pacific combined with the resurgence of Asian market can suffice the bright prospect for low-carrier airlines.  If however, there is a difference that can be accounted in the low-fare demand, it would be the regulation of the government and the slow dissemination of information regarding the low-cost airlines being recently offered to the Asians, especially to the Asian developing countries that perceived the air travel as expensive.  In fact, in support of Mr.  claims that low-cost airlines in Asia is highly advantageous since the only few interregional highways exists and no-high speed rail makes the low-cost airlines a promising and enticing business. Q2. Do governments pose a significant obstacle to the expansion of low-fare airlines in Asia?             Yes.  The regulation of airline in some parts of Asia inhibits competition to take place which results to the government being manipulative and restrictive to its growth leading to limited alternatives for Asian people to only have few choices in air travel.  Considering the success of AirAsia in the Malaysian borders, the urge for expansion to venture into intra-regional market is less welcomed by the Malaysian government as Malaysia’s regulatory authorities is confronted by the predicament of accommodating the growth prospect of the low-fare airlines at the expense of reducing the market value of the Malaysian Airlines as it is government owned.  The government in this instance may hamper the expansion of AirAsia, therefore, government on this regard; obviously act as a big obstacle for AirAsia.   Q3. Compare AirAsia's strategy with the strategies of Southwest and Ryanair. How is it similar to and different from the strategies of those carries? Southwest Airlines as being one of the pioneer in adopting the budget airline model, named in 1993 as the dominant airline in ninety-three of its top 100 markets ( 1999).  The Southwest incorporates to the core of their strategy, the operations in short sectors where they offer low and unrestricted fairs, high point-to-point frequencies and excellent on-time departures, thereby engulfing a brand image of ‘flying is fun’.  The summation of these strategies taken from the excerpts of Southwest CEO’s Mr. statement states that, 'We are not competing with other airlines; we're competing with ground transportation' ( 1996).  In fact, in recent years, Southwest has tended to top the Department of Transportation surveys of on-time performance, baggage handling and customer satisfaction (1998). Table1: The Southwest airlines' low-cost, no-frills model PRODUCT FEATURES OPERATING FEATURES Fares Low Simple, unrestricted Point-to-point No interlining Distribution Travel agents and direct sales, Ticketless In-flight Single-class, high-density, no seat assignment, optional meals, snacks and light beverages only Frequency High Punctuality Very good Aircraft Single type (Boeing 737), four variants, high utilization (over 11 hours/day) Sectors Short to average below 800 km (500 miles) Airports Secondary 15-20 minute turnarounds Growth Target 10 percent per annum with 15 percent as maximum Staff Competitive wages, profit-sharing since 1973, high productivity Source: Table 6.2 of Doganis, R. (2001) The Airline Business in the Twenty-First Century. The Ryanair strategy is not different from that of the Southwest since their strategy encompasses with that of the Southwest.  As what the CEO of Ryanair explicitly stated after a primacy of setback in the adoption of the budget airline model, 'We went to look at Southwest. It was like the road to Damascus. This was the way to make Ryanair work' (1998).  Just like any other low-carrier strategy, their key strategy does not differ much.  AirAsia, shares the similarities being offered by the Southwest and Ryanair, specifically in the in-flight, frequency, punctuality, aircraft, airports with a very slight difference in terms of the fare since they are relatively a bit lower, the distribution wherein the AirAsia adds the SMS booking feature that is aimed to cater to the Asian people such that they are fond of using the SMS and is being rated as mobile phones savvy.  Overall, AirAsia values the proposition describes as “a Ryanair operational strategy, a Southwest people strategy, and an EasyJet branding strategy.” Q4. Did Tony Fernandes weigh the range of political, economic, and operational risks when he took over AirAsia? What risks might he have overlooked?               Any top caliber entrepreneur would not venture into something too risky, even though entrepreneurs are highly characterized as risk takers, provided that he or she has not explored fully the consequences of venturing into a new risky business.  With Tony Fernandes being able to have the nerve guts to gave up his prominent position in Asia’s leading music industry being the vice president and head of Warner Music’s Southeast Asia operations in exchange of moving into a struggling AirAsia in which he became the vice-president of Southeast Asian operations, is indeed indicative of the heavy weigh he considered prior to his bold move wherein uncertainty may have placed his career in doom.  However, Tony Fernandes’s move cannot be considered a no-brainer at all.  Perhaps, it was envisioned by Tony Fernandes that something more bright was coming up for him in which, he has to act on to make that envision of his a reality.  It is hard to pinpoint if the decision of Tony Fernandes has some flaws or he has overlooked something from an audience perspective because with the tremendous success of AirAsia, it really is hard to tell.  From being a top executive of Warner Music from running an airline company in which he owns 35 percent of AirAsia’s stake, the harder it is to tell.     Q5. How would you describe Tony Fernandes's entrepreneurial strategy?               First and foremost, Tony Fernandes’s, a British man, is described as having a superb entrepreneurial attitude and skills that unquestionably falls into the context of being an entrepreneur, a risk-taker, innovator, initiative-taker and the like.  Equipped with marketing and entrepreneurial ability, it is no wonder that Tony Fernandes excels into envisioning and be driven by childhood dream of owning his own airline someday, he was able to make it a reality, just like that of a Bill Gates when he envisioned that household PC’s in the future would have Microsoft in their PC’s system.             Q6. How should AirAsia respond to the challenges:   (a)  new low-fare carriers entering the Asian marketplace   The low-fare airlines (LFA) entering in the Asian marketplace combined with the deregulation of government in the airline business permits competition to occur. AirAsia as one of the first LFA in Asia having have had established itself in the Pacific-Asia region can respond by protecting its competitive positioning in the market and focusing more on the intangibles that is resistant to competitor’s imitation.  With the advantage of being the first in Asian market, the competitors would surely try to find ways to imitate and emulate the strategies of AirAsia and it is imperative that the management would seek to protect that aspect.  Moreover, AirAsia can stress on the capabilities approach which serves as a locator of the sources of defensible competitive position in the distinctive, hard-to-duplicate resources that encompasses the integrations of assets and capabilities the firm has gradually developed (1987; 1991).  (b) low-fare strategies pursued by incumbent carriers?             It is inevitable that the LFA’s would offer the lowest possible fare to the consumers at the very bottom price they can.  Incumbent carriers would always find ways to strike back, offering customers lower prices, lower than that of AirAsia.  However, given the low fare already given by AirAsia, the battle would be on the aspect of giving add-on services at no extra cost in which incumbent carriers might fail to level on.  For example, in adherence to AirAsia’s cost-optimization philosophy, the assurance of safety first is primary to them.   Q7. How do you think the Asian passenger air transport marketplace will shake out? What lessons can be drawn from the North American and European experience?             Asian passenger air transport marketplace will shake out when Asian governments would impose stiff and strict regulations in the airline industry inhibiting competition to flourish.  Further, it will experience a shake out when Asian economy would have another financial crisis as people would not have relatively high purchasing power even though the prices being offered is already low, Asians may not be able to afford it since not all the Pacific-Asia region are financially well to do.  But with the Asians being able to hold up, like the booming economy of China and the consistency of Japan’s economy, seemingly the shake out mayhap is just temporary.  The lesson that can be drawn from Europe and North America experiences is that venturing into an alternative route can still be enjoying and inexpensive and the linkage of one country to another fosters unity and promotes interconnectivity between regions.

Budget airline model

Introduction Budget airline model is profitably used by low-cost carrier, also known as no-frills/discount carrier, that generally ...