Business strategy in transport Essay Example | Topics and Well Written Essays - 2250 words

Business strategy in transport - Essay Example In this context, it can be observed that the economic recession alike many other industries had affected airline industry as well. It can also be observed that apart from a number of benefits prevalent in the EU for starting a new airline service provider, there are certain difficulties that requires to be considered such as uncertain economic scenario, credit crunch, fluctuating fuel price and unpredictable environmental and climatic conditions. Due to these uncertainties, a few full-service airlines in the EU had suffered losses. Despite these certain hindrances the growth prospects which have been observed in the EU region has opened up opportunities for low cost service providers such as Ryan Air and EasyJet. In the EU there is a tremendous prospect of improvement in travel and tourism sector which will provide added growth prospect for a new airline service provider. Low cost operators can make the most of the existing and prospective scenario to leverage benefit out of it (Case Study, n.d.). Therefore, it can be observed that in the existing scenario in the EU, the low-cost operators are being able to earn profits for the shareholders. In this context, the research paper intends to critically examine the prospects of an entrepreneur who endeavours to set up a low cost scheduled airline within the EU. The route that has been selected is between London and Amsterdam. It is identified to be one of the most popular routes on a worldwide basis (Patrikarakos, 2009). The research paper will subsequently attempt to analyse the existing business environment to identify potential barriers to the intended business venture. Critical Analysis of the Business Prospect The intended business venture of the optimistic entrepreneur is towards starting a new low-cost scheduled airline service. From the provided case study, it can be observed that in the present economic context (post-recessionary period), there is a substantial growth prospect for establishing business in t he new venture. It can also be identified that in the present context, in the EU region, there are certain obstacles and losses faced by full service carrier due to few prevailing conditions. Therefore, the most promising growth prospect that can be identified is for the low-cost service carriers. The intended business venture can be started in not only the EU but also throughout the world i.e. Amsterdam to London route, which can be one of the most growth prospect oriented routes According to the intention of the entrepreneur, the new scheduled service will provide low-cost airline service in this particular route only at the inception. It can also be stated that the demand for service is at the optimum level in this route. Thus, a new service has tremendous opportunity to acquire benefits out of the growth prospect which can be from business travellers as well as leisure travellers who are likely to use the services provided by the new low-cost scheduled airline service (Patrikara kos, 2009). The two airports that can be selected for the scheduled airline service are Amsterdam Airport Schiphol, which is the prime international airport of the Netherlands, and Heathrow Airport of London, which is one of the busiest airports in not only the UK but also in the world (ACI World, 2011). In this context, it can be identified that the Amsterdam Airport Schiphol is situated mere 14 km outside the city of Amsterdam. The