MarketLine Blog

Posts about Transportation

Airline Industry: Heading to value differentiation

MarketLine

Price differentiation of an airline company has been implemented so far on the means of absorbing the consumers’ willingness to pay for the same service, an economy class with frills. In this way, not much price differentiation existed on the value of services as the distinction made was only between economy and business class. This distinction of services was too steep to keep out many consumers that would be available to pay for the price of a ticket with no frills and lower quality of services. The surging penetration of… Read more

Iran Transport: Accelerating forward to the future

MarketLine

Iran is a growing hub for transportation, acting as a critical connection point between India and Russia/ Europe. Until recently, the Suez Canal served as the quickest transport route between India and Russia however with Iran undergoing rail infrastructure upgrades and also building part of the North-South corridor, Iran is set to become a key part of the ongoing development of transport links using the rail network. The North-South corridor has the potential to cut the transport time by around 50% and is sure to disrupt the naval transportation market…. Read more

LiDAR self-driving technology. A case of calculated theft?

MarketLine

Google and Uber started off as friends with Google parent Alphabet investing $258m in Uber in 2013. They then became competitors, as Uber started experimenting with its fleet of self-driving cars in 2016. Finally, in 2017, both companies ended as adversaries in court, engaging in a bitter legal fight to control the future of transportation. The suit details the lengths Waymo goes to in order to protect its trade secrets, including purchasing LiDAR components from numerous vendors and completing assembly in-house to prevent any single vendor from knowing everything about… Read more

No restructuring plan can save Hanjin

MarketLine

At the present time the primary difficulty with the ship freight industry is one of oversupply, and the gulf between capacity and demand is growing still further. Market conditions are reigning in even the most competitive companies: Maersk, the Danish conglomerate and a leading company in the sector, is cutting jobs and has cancelled an order for six of the huge Triple-E super tankers. In such an environment, Hanjin cannot hope to survive – the demand simply does not exist for such a company anymore. No matter the quality of… Read more

Uber & Didi Chuxing: Uber gives app in China

MarketLine

Uber’s once seemingly irresistible march to world domination has suffered a setback as it agreed to merge its business operations in China with local competitor Didi Chuxing. Uber had been employing the practices that served it well elsewhere, by engaging in subsidizing of rides and drivers’ income to gain market share. However, in China a domestic ride sharing incumbent made from the merger of Didi and Kuadi in February 2015 (later renamed Didi Chuxing) could match Uber’s financial power, as it drew backing from Chinese internet companies and Apple. The… Read more

Self-driving to the future

MarketLine

The line between the auto and tech industries is rapidly blurring, with the pursuit of autonomous driving and a shift from car ownership towards car sharing and ride sharing. China is widely viewed as the next frontier for growth and many market players are looking to establish a foothold in this country, which requires significant investment. To keep up with changing market trends, most major auto makers are investing in their own driverless-car technology, which is less costly if done in cooperation with high-tech companies, like Google or Apple. The… Read more

Airlines: strategies of the world’s largest carriers

MarketLine

Worldwide, airline passenger volumes have been increasing steadily for decades, with only the occasional temporary downturn. Air transport of both passengers and freight is vital for the globalized economy. In the BRIC countries and other emerging economies, personal incomes are rising and making air travel accessible to a greater proportion of the population. This ought to be a good time to be in the airline industry, right? Wrong. Airline profit margins are among the thinnest of any industry sector. According to IATA data, the global industry had an average operating… Read more

Driverless Cars: The coming insurrection

MarketLine

The technology required to produce an autonomous vehicle already exists in specific circumstances. The challenge is to make self-driving cars viable in all locations, all conditions and all situations. Incumbent automotive manufacturers, together with major suppliers to the industry, are well along the road towards commercial production having already implemented a number of more basic autonomous driving features. Yet there remain significant barriers to the adoption of autonomous driving, not least of which will be consumer perception. Some of the key concerns in this regard will be skepticism around the… Read more

Ryanair profits soar as evolution of business model delivers results

MarketLine

On Tuesday 26th May, Ryanair Holdings (Ryanair), a low-fares scheduled passenger airline serving 1,600 short-haul, point-to-point routes across Europe; announced a 66% year on year increase in net profit. The company’s growth is no surprise to Marketline- the evolution of Ryanair’s business strategy was extensively examined in a March 2015 Case Study,  Cheap but no longer nasty: evolution at Ryanair, which predicted Ryanair shareholders were set to benefit from a sustained period of strong cash generation, as the ‘Always Getting Better’ program  delivered continued growth in passenger volumes.  The program,… Read more

Launch of Virgin Trains East Coast tightens Stagecoach’s grip on UK long distance passenger transport

MarketLine

March 1st 2015 saw the launch of Virgin Trains East Coast, operating the UK East Coast passenger rail franchise, awarded to a consortium of Stagecoach Plc. (90% holding) and Virgin Group (10% holding). Stagecoach Group Plc., a large multi-modal transport group, will run the East Coast Main Line ( connecting major cities such as London, Leeds, Newcastle and Edinburgh) franchise through to April 2022, together with the West Coast Main Line franchise through Virgin Trains , a 50:50 venture with Virgin. This will mean that the group effectively controls both… Read more

Indian Government seeks to put railways on the right track

MarketLine

Railways are an integral part of passenger transportation in India, described as a ‘lifeline to the nation’ by Indian Railways. Yet, they have been in a state of decline for at least two decades, as chronic underinvestment by successive governments has led to over-utilization as increasing volumes of passenger and freight traffic are transported on aging track infrastructure, where lines are often limited to a single track. As Indian Minister of Railways Shri Suresh Prabhakar Prabhu noted in his 2015/2016 budget speech, the potential economic benefits of reforming the railways,… Read more

British Cycling releases another comprehensive study: But will it fall on deaf ears?

MarketLine

There is generally a major problem in UK cities with transport, pollution and health problems. Whilst these are not specific to the UK alone, it has been suspected for a long time that investing heavily in encouraging people to cycle, will go a long way to relieving some of the worst of these problems. In London for instance there has been a concerted effort to get people on to bikes and it has taken major investment, to put in place a vast scheme of easily accessible rental bikes and cycle… Read more

Sudden End To Kingfisher’s Reign

MarketLine

Kingfisher – popularly known as King of good times – was established in 2003 by the liquor baron Dr. Vijay Mallya, who named the company after his favorite beer. After a modest start in 2003, Kingfisher managed to quickly build a strong brand and high visibility, by becoming the first ever player in the Indian airlines industry to operate in the lucrative niche of premium domestic flights and rapidly growing its base of happy customers. The company made all efforts to make the flight and the whole travel experience as… Read more

Car sharing industry – beginning of the end?

MarketLine

Zipcar, Inc. operates a car sharing network, providing self-service vehicles, conveniently located in reserved parking spaces, by the hour or by the day. The company offers its solutions to individuals, universities, businesses, and government agencies. It is present in North America and Europe. Zipcar’s way of doing business is particularly appealing to young city dwellers, who do not own their own cars, but walk, bike and use public transportation instead, most of the time. They usually like the cool cars  that Zipcar provides, such as Mini Coopers, or Toyota Prius,… Read more

Arctic Shipping; a future rival for the Suez Canal?

MarketLine

The melting of the Polar ice caps has opened the potential for a new shipping route which could cut thousands of kilometres between Asia and Europe, offering long-term hope for the shipping industry. The North Sea Route, a Russian regulated shipping lane between Murmansk in the Barents Sea and the Bering Strait, has seen over 213 applications to date in 2013, with 204 approved. Compared to 2012, where only 46 ships sailed, and two the previous year. Historically, the route was always limited by frozen waters. As climate change persists,… Read more