In 2008, China-based Yunnan Lucky Air, a low-cost, domestic airline modeled after

Southwest Airlines in the United States, was searching for new competitive
advantages in China’s increasingly competitive yet heavily regulated airline
industry. E-commerce was being looked to as one growth strategy.

The case study is about the cost effectiveness at Yunnan Lucky Airlines and focused
on the challenges that the company is experiencing in relation to cost.
Significantly, the cost would be analyzed utilizing specifics; also, a cost-
centered business strategy will be developed for the Airline going forward as a
profitable company. In addition, a tactic will be devised to differentiate the
company and support the cost focused strategy that will be developed and how it
will be implemented within the general strategy.

The Lucky Air is one of China's largest airlines, serving domestic passengers on
over 80 locations and 51 itineraries. The firm was established in 2004 and provides
maintenance, reservation, and air transport services. It is based on inexpensive
costs, excellent customer service, and a flexible distribution system. We will
analyze the difficulties Yunnan Lucky Air has encountered in relation to expenses
in this article. Over the years, Yunnan Lucky Air has been experiencing a number of
problems that have hampered its effectiveness and sales growth. Then, to increase
the profitability of the Chinese company, we will create a cost-focused business
strategy. In order to distinguish the company and support the cost-focused approach
we devised, we will define an effective method and then implement it.