Spring Airlines: China's Low-cost Airline
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Spring adopted most of the operational
policies which had made Southwest so successful, but also tried
to innovate further to keep costs down. As of mid-2009, Spring
was struggling to meet the increase in passenger demand. In June
2009, the airline planned to offer standing-only tickets to
passengers on its flights. The move was expected to cut down
costs for the airline further while increasing the seating
capacity. Moreover, it would lower the airfares for passengers
who opted to stand during flights. The idea received mixed
reactions from industry analysts, experts, and consumers. Some
aviation experts dismissed the idea in view of safety concerns.
Some experts pointed out that while major carriers were making
efforts to recoup their losses by offering luxury services to
the passengers, Spring was planning to make flying even less
» Analyze the business model and operating strategies adopted by Spring to
emerge as a successful LLC in China.
Operational strategies, Cost leadership, Operational model, Business model, Low Cost Carrier, Pricing, Distribution, Competitive advantage, Standing-only tickets, Chinese aviation industry, Regulatory environment, Spring Airlines, Okay Airways
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