GSLOC,
You are looking to intelligently apply something like QSI - Quality Service Index. Let me share one example of how it can be used, and you can of course adapt QSI to your needs.
EXAM QUESTION
The market share of an airline can be estimated using the QSI method. The current timetables for the Sydney-Auckland route (both direct and indierct) are shown in the following table. The total passenger traffic (all routings) for the route is 21000 per week in each direction.
AIRLINE Outbound flights/week. Via Aircraft
Air New Zealand 28 Direct Boeing 767
Qantas 35 Direct Boeing 767/747
Qantas 7 Melbourne Boeing 747
Lan Chile 7 Direct Airbus A340
Virgin 10 Brisbane Boeing 737
Emirates 7 Direct Boeing 777
- What is the expected market share of each airline? (marks = 50%)
- What should the market and fares strategy of Emirates be in the face of this competition? (marks = 10%)
Other revenue sources, low fares
- What are the competitive advantages and disadvantages of Virgin on this route, and how important is this route to them? (marks = 10%)
ADV = low fares, pick up traffic in Brisbane. DISADV = indirect route, narrowbody aircraft. Unimportant.
- What low cost carrier strategies can/cannot Virgin use on this route? (Marks = 30%)
CAN = Standard fleet, maximise utilisation, cheaper product design, lower travel agent fees, outsourcing
CANNOT = Secondary airports, point-point service