Recommended alternative and execution for Cathay Pacific Airways essay
The development of the low cost subsidiary is the most efficient alternative to the current strategy implemented by Cathay Pacific Airways. The low cost marketing strategy will diversify operations of the company and attract more customers. In the time of the uncertain economic development and unstable situation in international markets, many customers are looking for affordable prices offered by airlines and low cost companies are in an advantageous position today. At the moment, Cathay Pacific Airways has a well-developed network of regional airline subsidiaries. Therefore, the company can turn them into the low cost subsidiary uniting their efforts and assets to offer customers low cost flights.
Low cost regional airlines may complement long haul flights offered by the company. Low cost regional flights may deliver customers to the major hubs, from which they may be delivered to virtually any part of the world. At the moment, the company offers similar services but the costs of regional flights are relatively high that discourages some customers from purchasing services from Cathay Pacific Airways. Instead, the introduction of the low cost branch of the company will attract more customers and make regional flights more affordable for them.
The implementation of the low cost airlines’ strategy should start with planning. The company should identify accurately, which airlines can become low cost ones. In this regard, the company can use either available region airlines and a part of their fleet or acquire a new regional airline, which already operates in the low cost market. In this regard, the former is more preferable and the company should use a part of the available regional airlines’ fleet to offer customers low cost services. The next step of the implementation of this strategy is the implementation of the plan proper. Finally, the company should maintain the control and monitor the implementation of the strategy. If the performance of the company starts deteriorating, the company should introduce changes in the plan or change the strategy.
