Informing a Competitive Strategy on considering establishment of a New Airline – A case of the African Market -

4.3 If you enter into a strategic partnership, how does an airline achieve sustainability and not perpetual dependancy?

4.4 If all current airlines, especially international operating national airlines are making loses, including AEPX and ASAX, what is the payback period for the investment into the new entrant? Are there significant cash inflows to guarantee the going concern of the new entrant? What back-up is available as a source of revenue to subsidize the new national airline’s operations?

4.5 What are the complementing businesses and services to support the new airline revenue base?

This force studies how easy it is for consumers to switch from a business's product or service to that of a competitor. It looks at how many competitors there are, how their prices and quality compare to the business being examined and how much of a profit those competitors are earning, which would determine if they can lower their costs even more. The threat of substitutes is informed by switching costs, both immediate and long-term, as well as a buyer's inclination to change.

5.1 AEPX and ASAX are the number 1 substitutes they will play to retain their market share.

5.2 Domestic airlines ambition is to grow to be a national airline operating both regional and international routes. Are they being encouraged or will their domestic market to be shared with the new airline?

5.3 How vibrant is the domestic market to include a national airline as a competitor?

5.4 Reciprocity of aviation industry agreements. Can these be strategically upheld to ensure thrive of the new airline as a substitute airline in the African market?

5.5 Being mindful and protecting the new airline from being supplied with poor quality, counterfeit products, competencies and services.

The five by five – 5x5 - analysis of informing a competitive strategy of a new entrant into the aviation industry offers a preliminary scope of the aviation market situation analysis. Asking the questions informs the gaps to give confidence to investors and market stakeholders. Entry into a predominantly loss making business environment calls for prudent and holistic informed planning lest the investment plan fails.

“Ryanair does not have any ‘hidden charges,’” according to an airline statement in response to the government initiative. “All of Ryanair’s optional charges and fees are clearly outlined on the Ryanair.com website and displayed transparently throughout the entire booking process. We welcome any measures which combat unauthorized screen-scraper websites mis-selling airfares and including their own inflated, hidden fees.”

Tim Alderslade, chief executive officer of industry group Airlines UK, said in a statement that the association will respond to the government’s strategy on charges later this year.

In the U.S., President Donald Trump’s Transportation Department in December scrapped two efforts to make fare information easier for customers to understand, including requirements to disclose fees for seat assignments or checked bags. The decision was taken to reduce regulatory costs on businesses. The Times reported the U.K. government’s plan earlier Saturday.

Bloomberg.