Aviation has become an extremely diversified business area, as it determines the division of the audience by segment. First of all, price and route are markers of companies’ diversification, which must adapt their strategic planning accordingly. Gold Airways (GA) specializes in mid-range flights in the underdeveloped tourism Asian part of Russia. Consequently, their fleet should consist of narrow-body aircraft of the Airbus family. Providing fast service of equipment at the airport and launching passengers into the cabin will allow one to efficiently manage finances and increase the number of flights, which will reduce the price of tickets.
GA is a promising startup as it offers a competent business model for Russian travelers who do not live in Moscow or St. Petersburg. Russia’s vast territory determines the benefits in its division into service areas, while Siberia remains undeveloped in the tourist context. GA specializes in mid-range flights, eliminating aircraft with over 200 seats. The advantage of the four hubs is using one type of equipment, namely the Airbus A320. This type of aircraft allows one to fly both short distances and serve the entire territory of Russia. For example, the flight range will enable routes such as Moscow-Irkutsk-Khabarovsk to be connected using only hubs. The feasibility of such a decision is supported by large low-cost companies such as AirAsia and EasyJet (Slotnick, 2020). Affordable prices will also become the basis for tourism development in Siberia and the Far East. It was noted that the presence of low-cost companies at airports improves their activities and speeds up the processes of servicing machinery and passengers (Mandić et al., 2017). Thus, GA’s business model will satisfy the audience segment and make their travels more comfortable and affordable.
GA will be able to stimulate the development of tourism in the Asian part of Russia due to hubs’ competent use. The Airbus A320 is a suitable vehicle for servicing the entire country. Besides, studies have shown an increased attractiveness of airports with the availability of low-cost airlines. Thus, passenger satisfaction will be achieved by quickly servicing the aircraft on the ground and increasing the routes from hubs.
References
Mandić, A., Teklić, M., & Petrić, L. (2017). The effects of the low-cost carriers’ presence on airport performance: Evidence from Croatia. Tourism and Hospitality Management, 23(1), 17-34. Web.
Slotnick, D. (2020). The amazing story of how the Airbus A320 became the Boeing 737’s greatest rival. Business Insider. Web.