Porter Airlines aims to offer “convenience, speed and service” to frequent, time-sensitive business travelers on short-haul flights by competing on brand, location and service level. Through its low-cost structure, Porter can provide a quality trip to its customers. As the only airline at the island's airport, Toronto City Center Airport (TCCA), can offer shorter travel times to the airport, shorter check-in and security lines, faster delivery times, free shuttle between Union Station and the ferry to TCCA, web check-in. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Additionally, Porter offers deluxe amenities in terminal buildings and customer service: free baggage allowance of two checked bags, one carry-on bag, and one personal item; Free wireless Internet, conference room, computer room, complimentary refreshments and beverages, business center and an on-site licensed restaurant in the terminal building. They also offer free drinks and snacks on board, hotel and car rental services, and limousine and taxi service. To keep costs low, Porter implemented the following ways: uses a fleet of single aircraft (Bombardier Q400S) with Pratt and Whitney PW150A engine as their aircraft, ideal for short-haul flights. It has smaller airports, lower cruising altitudes, lower maintenance costs with high usage, maximum cruising speed of 414 miles per hour, lower pay rates for pilots and flight attendants, lower airport taxes and, most importantly, the level of consumption of fuel and emissions is 30%. ~40% cheaper than a comparable regional jet. Furthermore, due to its low cost and high efficiency, this aircraft also offers an excellent customer experience. The Q400S is the quietest turboprop, its ANVS system has significantly reduced vibration and cabin noise, increasing passenger comfort. In addition, it also adopts electronic ticketing, employs non-union workers with lower wages, lower costs of pilot training, maintenance and parts inventory; secondary airports are also needed, which means a massive reduction in landing fees. Porter Airlines caters to time-sensitive professionals, primarily destination business travelers who traveled to or from Toronto for short business trips of 1 to 5 days. These travelers tended to book more last minute and were willing to pay more for time flexibility. Therefore, Porter offers frequent flights, three fare classes that provide a number of options for free changes and cancellations, appealing to the target consumer segment. Furthermore, the number of leisure travelers is also increasing; for them, flying with Porter Airlines has gradually become a sign of social status. Instead of focusing on low rates, Porter uses his efforts to build his own brand. It wants to create a “high class” image, from the design of the lounge to the staff uniforms and glassware on the plane. Porter Airlines has many competitive advantages. Its prime location, TCCA, ideally close to downtown Toronto, with a value proposition that fits perfectly with its target consumer segment (convenient service, free shuttle, lounge). It is also currently the only airline operating at the TCCA. Its low-cost structure, short delivery times, free exchange and cancellation policies and frequent flights are also part of their competitive advantage. The fleet of aircraft used (Bombardier Q400S) is also suitable due to its structurecosts and level of use. As I mentioned earlier, Porter's unique services are really important to its target customers. First of all, as I mentioned, its location significantly reduces travel time for business travelers and provides convenient free shuttles to TCCA, which is their main advantage. Secondly, frequent flights and three fare classes with a range of free changes and cancellations offer customers more flexibility in time, in case of extended conferences, meetings and traffic, etc. Third, free wireless internet and conference room provide convenience for business travelers while waiting for boarding; the plane is less noisy, the snacks and drinks in the lounge and during the flight also increase the satisfaction level of their customers. Their partnerships with hotels and car rental companies, as well as taxi and limousine service, have also made it more convenient. Their value proposition of providing comfort, speed and service has successfully met customer needs. Internal competitive rivalry in this market is intense. There are many small, low-cost competitors, but because Porter focuses on a very segmented market, the threat from these small competitors is relatively minor. But Air Canada is in the market and can fight a long period of price wars; Since Air Canada is focusing its service and competition on Pearson Airport for now, it did not expect any new entrants into the TCCA. The threat of new entrants in this market is low; has high barriers to entry: heavy capital requirements, licensing and many government regularities; but once the firm enters this market, the threat of new entry diminishes. The threat of substitutes is minimal: for domestic travel, travelers can choose to drive or take the train; for long-distance travel, options besides flying would be shipping, but these alternatives take a long time, so the risk is low. Bargaining power of buyers is low to moderate, despite many low fare airlines, Porter offers a unique value proposition to its target customer segment with quality service. There are also customer switching costs in frequent traveler points and in the subscription system. Since Porter uses the Bombardier Q400S as a single-plane fleet, he has no choice of planes, and Bombardier can offer Porter a fixed price to buy 10 more planes without discounts. Therefore, the bargaining power of suppliers is high. The external problem and constraints that Porter faces could be analyzed through PEST analysis. For starters, the TPA (Toronto Port Authority) limited TCCA to serving short-distance flights just 500 miles from Toronto, which limited Porter's service area and expansion opportunities. To accommodate the service region restriction, Porter uses only the Bombardier Q400S as its aircraft, which is ideal for short-haul flights. Additionally, the lawsuit against Air Canada Jazz is pending. Therefore, Porter must be aware of the possibility of Jazz re-entry into the TCCA. Government intervention on the bridge between the city and the island's airport also acts as a barrier, and Porter uses the free ferry shuttle to address this constraint. In economic terms, tourists traveling with Porter Airlines are on the rise and as Toronto has been widely regarded as the commercial capital of Canada, traffic through the city is expected to increase, consequently Porter has an optimistic future economically. In social terms, as I mentioned in the economic part, the number of leisure customers is increasing since flying with Porter has gradually become a sign of social status, it is a new.
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