Low-Cost Carriers Start up in Australasian Market: Feasibility Study of Supply Chain Management & Business Growth

Low-cost carriers have seen a high penetration rate over the last decade due to the increasing players that are emerged over these years. This segment of the airline industry is very focused on providing services at the lowest possible price. They have remained valued in the market and seen a growth in market share due their cost reduction initiatives and pricing policies models. To have a start-up of a low-cost airline, it will be important to perform a feasibility study on the practicability of this manner of project with the careful consideration of market penetration and the region for which the airline business is to cater for. This paper shows the feasibility study for a start-up low-cost carrier in the Australasian market with emphasis on the client specific requirements. The approach uses in-depth researches and case studies on low-cost airlines and generally accepted methods and techniques in business analysis. The study covers the analysis of three segments of requirements (which are in line with the client fundamental objectives), the project timelines and the recommendations from the final output of the study. Firstly, the requirements been structured into functional; structural and resources requirements. They based on the client request to ascertain if current local supply chain can sustain the business and its capacity and also if the current logistics infrastructure could support the airline growth. Secondly, the feasibility study timelines illustrated with the help of a Gantt chart shows the project duration with critical milestones task and reports due dates. Finally, the contributions and recommendation provided in the final chapters of the study based on the in-depth analysis, methods and approach will provide the client will the appropriate and sufficient information needed to understand the various layers of setting up a low-cost carrier. It will also provide the necessary foundation of strategic decisions on future actions regarding conclusions on utilizing the local supply chain and logistics infrastructures.