The importance of leadership to achieve business excellence in low cost airlines

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The Importance of Leadership to Achieve Business Excellence in Low Cost Airlines

Introduction

Recent decades have witnessed the tremendous changes in the management of the airline industry as a result of the introduction of new kinds of airline services (Ehmer et al , 2008 . To incorporate these changes and implement the newer airline services , business models are also increasing such that the best perceived business model is used to generate the highest revenues and market share (Rothwell , 2008 Nevertheless , identification of a

good business model requires the stewardship of an efficient leader . The purpose of this review is to compile information that correlates low cost airlines with effective leadership and the excellence business model

Low Cost Airlines

Previously , prestigious airline services were quite expensive and affordable to a couple of people and businesses . However , the introduction of low cost airlines brought cost effectiveness in the airline industry as the line focuses on cost reduction . Nowadays , many people regard airline travel as a necessity (Rothwell , 2008 . Low cost airlines use a strategy of pricing in order to obtain a considerable market share . Examples of low cost airline companies include EasyJet and Ryanair based in the U .K and Southwest Airlines based in the U .S

Statistics from Statfor (2005 ) show that low cost carriers in Europe increased by 33 percent in the first half of 2005 and that the more 3 ,500 flight movements have been recorded . Pena (1996 ) shows that the American consumers benefit from the...