Airline Business Plan Feedback
Heracles Airline Company’s idea of entering the market with lower charges is outstanding. The concept of offering minimal airline prices is substantial for it will help the Company receive many customers. Price reduction is a competition technique used by many companies when entering the market to attract customers (Farrell & Shapiro, 126). Heracles Airlines Company will be able to venture into the market and acquire status by using this idea for lowering flight prices and giving quality services to the customers. It will attract high percentages of visitors willing to travel to Greece and help it grow at a fast rate. The Company will offer flights from different parts of Asia, North Africa, and Europe, meaning that it is already differentiated in terms of market share. Various classes of air passengers need quality for money (Farrell & Shapiro, 126). The idea of Heracles airlines to offer subsidized prices for quality services will be like a push button to the industry.
However, lower prices may impact the Company negatively. Profits are what drive numerous businesses, and companies should be keen to make sure they are not operating at a loss (Slywotzky, Morrison & Andelman, 18). Heracles Airlines Company is a new venture focusing on offering cheap flights without considering the consequences. Underpricing is an issue affecting different airlines, leading to significant losses, and Heracles Airlines Company can be a victim if the acquired revenues do not go above the breakeven point. The Company needs to learn from other airlines that have faced losses due to cutting down flight charges. If Heracles airlines Company make losses, it may collapse since it is a new venture and not sufficiently grounded in terms of market share and competition.