Sunday, October 29, 2006

Topic Outline I. Introduction
Recently, Taiwanese domestic airline industry has been suffering under the threat from losing customers base on the current development of the high-speed railway. The High-Speed rail is going to make its debut in the end of 2006. It is very possible that the benefit of High Speed Rail will strike the market of Taiwanese domestic airlines (take TransAsia as an example). The outcome that customers may turn to other choices instead of taking airplane is about to cause loss of the airline company.

II. Body
The body includes four possible factors that affect the result of losing customers for Taiwanese domestic airlines, which are the ticket fare, stop location, target market, and maintenances.

A. The price of ticket fare will affect customers’ willingness.
1. The rise of petroleum price directly affects the price of airplane ticket.
2. The capital of buying airplane has been added up to the ticket price.
3. The accommodation of airplane each time affects its profit balance.
B. The stop location set up in each spot will affect customers’ willingness.
1. Local airports located only in big cities cause the difference between town and country.
2. The stop around High-Speed railways will boost up the development around neighborhood.
C. The market of customers will be divided into two groups.
1. Customers commuting by airplane may only for people who have higher consumptive ability (business traveler, regular customers).
2. The High-speed railways are more suitable more mass population.
D. The maintenances of devices / appliances will affect customers’ willingness.
1. The cost spending on aircraft maintenance each year is high.

III. Problem solution
Since the airplane company has become aware of the crisis, now they are thinking of a solution to deal with it. By combing the air business cargo and air passenger cargo together, the company wants to make adjustment of the percentage from these two different types of air cargo, and by the mean time increase the occupancy of aircrafts.

IV. Conclusion
V. References


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