Should Coastal Flight Airlines expand into Europe by forming an international airline alliance with major low-cost and ultra-low-cost carriers in the region? Original Answers Only

Management short response

A low-cost carrier (LCC) is an airline that often foregoes traditional airline services—such as few or no food and beverages—in an effort to keep flights low cost. Many times an LCC also relies on a single aircraft type to keep costs low. Classified as an LCC, Coastal Flight Airlines has been incredibly successful in carving out a segment of the US airline market for price-sensitive consumers belonging to both the business and leisure travel segments. Despite being among the largest US domestic airlines by passenger count, Coastal Flight Airlines currently has no international flights. Coastal Flight’s three predominant competitors—American Airlines, Delta Airlines, and United Airlines—each belong to one of the three major international airline alliances (American Airlines—OneWorld, Delta Airlines—SkyTeam, and United Airlines—Star Alliance).

In short, an airline alliance is a partnership among airlines where resources may be shared.1 These alliances have enabled Coastal Flight’s competitors to partner with some of the largest worldwide carriers operating predominantly outside of the United States. In Europe, this includes Lufthansa through Star Alliance, Air France through SkyTeam, British Airways through OneWorld, and KLM through SkyTeam. For the most part, the phenomenon of airline alliances in both the United States and Europe has not expanded to include the major low-cost carriers and ultra-low-cost-carriers (ULCCs) present in the region. In Europe, this includes companies such as Ryanair and EasyJet, who are the top two largest airlines based on number of passengers.2 In the United States, LCCs/ULCCs have also been excluded from the major alliances. In addition to Coastal Flight Airlines, neither Spirit Airlines (3 percent market share) nor Frontier Airlines (2 percent market share) belong to a major alliance.3 The rationale for this decision is multifaceted but could be due in part to differing quality standards between LCCs, ULCCs, and traditional carriers.

Unlike its peers in the LCC/ULCC space, Coastal Flight Airlines has consistently recognized unions and prioritized relationships with its employees. Coastal Flight has managed to maintain a company culture centralized on the concept of putting employees first. This is exhibited by the fact that Coastal Flight has never resorted to layoffs or furloughs to manage its budget. Approximately 50 percent of Coastal’s operating budget is related to salaries and wages, and benefits are Coastal Flight’s largest expense. Furthermore, Coastal Flight’s leadership is very pro-union, with the major unions including the Coastal Flight Airlines Pilots’ Association, Transportation Workers of America, and the International Association of Machinists and Aerospace Workers. In contrast to Coastal Flight, Ryanair’s leadership has consistently shunned unions and has created strife between itself and its employees based on this stance.4 It may be worth considering whether these corporate culture differences are reconcilable or not, and what degree of effort and financial cost may be required to mediate the differences.

One of Coastal Flight’s strategies has been to rely on a single aircraft supplier—Boeing. Advantages of this method include discounts on bulk purchases of aircraft, operational efficiency on maintenance and part replacement, and pilot training, among others. Coastal Flight has historically elected not to diversify its fleet with Airbus models. In the context of an airline alliance, this is a factor that should be considered as it may complicate or further contribute to economies of scale depending on the composition of alliance partner fleets. For example, while Ryanair has historically been heavily reliant on Boeing, EasyJet procures their aircraft predominantly from Airbus. While other suppliers do exist for aircraft, Boeing and Airbus account for a vast majority of market share. This duopoly is only somewhat challenged in the regional airliner space by the Brazilian firm Embraer and Canadian firm Bombardier.

See also  Communications Plan

Coastal Flight is well-known for their utilization of point-to-point routes to minimize turnaround time at the gate. A point-to-point system is characterized as flying into and out of two cities directly and stands in contrast to the “hub-and-spoke” model, which implies an airline has a central hub with connecting flights (spokes) going into and out of the hub.5 The point-to-point method has been one aspect of Coastal Flight’s service offering that is appreciated by its consumers. The method employed by potential alliance partners in Europe is another aspect worth considering, as it may align or misalign with Coastal Flight’s service-offering style in the United States.

The impact of cultural disparities between Coastal Flight Airline’s home country, the United States, and continental Europe is yet another aspect worth considering. Take, for example, France. A comparative analysis of the United States and France along Hofstede’s cultural dimensions indicates that the two countries have differences when it comes to the dimensions of power distance, masculinity, uncertainty avoidance, long-term orientation, and indulgence.6 These notable differences may impact which service offerings are provided by Coastal Flight in a number of ways. For example, France’s high score on power distance indicates a strong bias toward hierarchy in French society. Coastal Flight’s current ticket offerings in the United States do not include a first-class option. The existing “fly first” fare, Coastal Flight’s closest equivalent to first class, does not include a first-class lounge or additional seat room, but it does give the buyer advanced boarding privileges as well as refund flexibility, same-day changes, and more reward points. Will the current “fly first” service offering be enough to satisfy the gap in power distance expectations among French consumers, or is an adjustment needed in order to successfully enter a market like France?

The impact of COVID-19 on international travel dramatically reduced the feasibility of international expansion in the airline industry. However, increasing vaccination rates coupled with the recent announcement of a November 2021 repealing of the US–Europe travel ban once again ignites the debate of whether Coastal Flight should seek to increase their international offerings to Europe by means of an international LCC/ULCC alliance.

See also  Analyze presentation audiences in terms of message benefits, learning styles, and communicator styles.

Should Coastal Flight seek to join an alliance, additional questions arise around the extent of the alliance. Common alliance activities include code sharing, shared ground facilities, joint marketing, maintenance, purchasing, and procurement, and virtual mergers of IT systems. However, a more comprehensive alliance leads to increased interdependability between companies, which may be viewed as a heightened risk factor. Due to the nature of the industry, governmental regulations around alliances, joint ventures, and mergers can be quite restrictive and should also be accounted for while undergoing the decision-making process.

Many airlines seeking to expand their US–EU operations have elected to pursue the route of a joint venture. It is important to keep in mind that joint ventures do not eliminate all legal risk. An example from American Airlines and Qantas in 2015 illustrates that the US Department of Transportation may push back against virtual mergers that would reduce competition and consumer choice, without producing sufficient offsetting public benefits.7 Due to the size of both Coastal Flight Airlines and Ryanair/EasyJet, any proposed joint venture between them may come under similar scrutiny from government bodies in both the United States and Europe.

So, what is Coastal Flight’s next move? Link to article

Questions to answer:

  1. Should Coastal Flight Airlines expand into Europe by forming an international airline alliance with major low-cost and ultra-low-cost carriers in the region?
  2. What identification criteria should Coastal Flight use when deciding what airline would be best for forming an alliance?
  3. How does the formation of an alliance with European LCCs/ULCCs mitigate some of Coastal Flight’s current risks, and how does it generate new risks?
  4. How might the service offerings provided by Coastal Flight Airlines change as a result of the new alliance? is an academic writing platform that provides students and professionals with quality services to ease their assignment challenges. With a wide range of services, the platform has become one of the leading academic writing service providers in the market due to its reliability and affordability. Below, we shall discuss some of the services which provides:

Essay Writing Service
The essay writing service provides customers with quality essays on any subject or topic they requested within a given deadline. The writers at custompaper are experts in their respective fields, and they ensure customer satisfaction by producing original content with thorough research involved backed up with strong evidence from reliable sources available online or offline. All essays come with free plagiarism reports as well as revisions if needed so that customers can trust that they are getting high-quality work for their money’s worth.

Research Paper Writing Service
This is another popular service offered by custom paper help wherein customers are assisted in conducting research papers according to their needs and requirements within specified deadlines. Writers at custom paper help have vast knowledge about various topics belonging to different disciplines such as Management, Arts & Humanities, History etc., allowing them to craft impeccable research papers every time regardless of the complexity or urgency level requested by customers. Additionally, all our research papers come along with proper citation formats which ensures customer’s safety when it comes to plagiarism issues while also helping them save time on formatting procedures thus improving overall efficiency even further!

See also  How does PMBOK Chapter 2 help bolster your understanding of the principles Heagney offered in Chapter 16. B) Specifically, which components of PMBOK Chapter 2 do you find most helpful, and why?

Dissertation Writing Service
CustomPaperHelp also offers dissertation writing assistance for those who need it most – students preparing for graduation or professionals wanting to further refine their skills through higher education levels such as Master/PhD degrees etc, Our team of writers consists of experienced individuals having Master’s/PhD degrees themselves so you can rest assured that your dissertation will be handled expertly from the start till the end! Furthermore, we offer unlimited revisions until your complete satisfaction is achieved, along with regular checkups being done throughout the process just so everything goes according to course without any hiccups!

Editing And Proofreading Services
If you already have written an essay but want professional feedback before submitting it, then CustomPaperHelp also offers editing & proofreading services which helps in identifying & rectifying errors present in assignments like grammar mistakes, spelling mistakes, punctuation problems etc., thereby ensuring top-notch quality work, before submission takes place! We understand how important accuracy & consistency are when it comes to grading systems used at universities nowadays, so taking extra care during this phase becomes absolutely essential if good grades are desired afterward!

Coursework Help
For those who find coursework difficult due to complications of being quite technical in nature; CustomPaperHelp extends its support here too, by providing quality solutions every single time – starting from understanding concepts properly up until composing flawless answers following university guidelines closely enough making sure no loopholes remain whatsoever! Whether it’s related math problem-solving algorithms or lengthy home assignments – our expert panel has got you covered from head-to-toe leaving no stone unturned during this very crucial stage since final grades depend largely upon the success rate achieved here successfully!

Assignment Help
Assignments form an integral part of getting better scores & ultimately, a degree itself (in case pursuing a masters/PhD) – something only possible if precision is made a priority right away; otherwise, chances of failure increase exponentially over a time period detrimentally affecting performance evaluation systems later down road drastically hence stressing timely importance completion prior commencement other operations associated same project altogether consistently meeting high standards expected each situation respectively! Here too, CustomPaperHelp presents comprehensive solution package exceeding expectations beyond point offering optimal values therein ensuring maximum satisfaction reached under circumstances prevailing accordingly without fail…proving once more why people trust us implicitly without second thought whatsoever!!

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Custom Paper Help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Paper Help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Custom Paper Help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.