Research on low-cost operation strategy of Juneyao Airlines

Abstract

Juneyao Airlines is China's famous low-cost airline based in Shanghai. This paper aims to explore how Juneyao Airlines balances the relationship between low cost and customer service quality while pursuing low cost.

Firstly, this paper analyzes the pattern and challenges of the global air transport industry, points out the case and theoretical framework of the low-cost strategic model of airlines, and clarifies the research question of this paper. The analysis of Juneyao Airlines' low-cost operation strategy will be carried out from five parts: competition strategy, differentiated service strategy, dual-brand strategy, cost and profit strategy. In terms of competitive strategy, this paper uses SWOT analysis matrix, Porter's five forces analysis and Southwest Airlines' strategic map as theoretical basis to obtain Junewoo Airlines' market positioning and target customer groups in the competi-tive environment of the aviation industry. Moreover, this paper also finds that Juneyao Airlines mainly uses the geographical advantage of Shanghai base to attract customers with more cost-effective services, and also expands its international routes (such as cooperation with Finnair). At the same time, Juneyao Airlines also strictly controls ticket prices to consolidate its competitive advantage in the low-cost airline market. In terms of differentiated service strategy, Juneyao Airlines is committed to serving middle and high-end business, business and business passengers. This paper finds that while pursuing differentiated service for customers, Juneyao Airlines also focuses on the problem of delays in China's aviation market. The chairman of Juneyao Air-lines directly manages the on-time rate of flights. Won the customer's love and recognition. In terms of enhancing the customer experience, Juneyao Airlines has invested heavily in a comprehensive upgrade of the interior of the aircraft. For example, in business class and first class, the addition of adjustable foot supports and treadles makes passengers more comfortable during the flight journey, as well as advanced personal entertainment systems, the quality and variety of catering services, and so on. In terms of dual-brand strategy, this paper introduces the concept of dual-brand strategy, and answers how Juneyao Airlines uses dual-brand strategy to improve its competitive advantage. In terms of cost and profit strategy, this paper analyzes the financial data in the annual reports of Junewoo Airlines in recent years, and finds that Junewoo Airlines adopts a cost-leading strategy in cost, so as to take some innovative measures in cost control. By comparing the main financial data of Spring Airlines, this paper finds the gap be-tween Juneyao Airlines and Spring Airlines, and finds the profit model strategy of Juneyao Air-lines.

This paper analyzes the key elements of Juneyao Airlines low-cost operation strategy and its implementation effect, including cost control, operation efficiency improvement, market positioning and so on. Based on these analyses, this paper puts forward several specific recommenda-tions to help Juneyao Airlines further optimize its low-cost operating model and maintain a competitive edge in the highly competitive aviation market.