Differences in Ground Handling in the Global Market

Autor: Yik Lun Tan



In this project, the business model of Low Cost Airlines (LCA) in Asia, North America and Europe has been discussed. In Asia, LCA are lacking behind LCA in Europe and North America in many aspects. Different ways have been introduced by LCA in Asia to attract more passengers such as alternative booking and payment methods. Since internet is not as widely used in Asia as in Europe and North America, other distribution channels such as telephone and travel agents have been used by LCA in Asia. The market potential of LCA in Asia is very high and is blooming. Reason for it is Asia has the world's largest population. China and India especially, which have the world's first and second highest population, have high potential for LCA market. On the other hand, economy in Asia generally is undergoing a growth. Therefore more and more people afford to fly. In contrast, LCA in North America and Europe are doing well. The market is dominated by LCA which are already long established such as Ryanair, Easyjet and Southwest. Besides emphasizing on the fare, LCA try to improve their flight quality by providing snacks, entertainment etc. For example, JetBlue always keeps a good relationship with the passengers and provides more services on board in order to compete with their biggest competitor, Southwest Airline. Ground handling has been optimized by LCA in terms of cost and time. Usage of secondary airports enables LCA to economize their airport charges. The emergence of secondary airports is either by constructing new terminals or converting unused airports to secondary airports. The former method is more common in Europe and North America. In this project, ground handling has been further discussed and differences have been compared in the results. Ground handling is usually done by 3 parties, which are airline, airport and independent ground handling companies.