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4). The return on this modest investment was impressive: "We saw that mobile is five-to-ten times more effective than online advertising" (Butcher, 2009, para. 4). The contest also increased visitors to the company's WAP site (Butcher, 2009).
7.
Description of Location
The same location will be used for the envisioned marketing campaign as the "Back for a while" initiative which targeted Hispanic males and females ranging in age from 27 to 45 years, in the New York and Houston metro areas; both English as well as Spanish consumers will be included in the campaign.
8.
Pricing Strategy
Because of skyrocketing energy costs, the company is already operating on razor-thing profit margins. Therefore, the company's general pricing strategy that is associated with the marketing initiative envisioned herein, "Llevar a un amigo" ["Take a friend"] will remain unchanged from current practice, but the content will offer Hispanic consumers in the targeted areas…
References
About us. (2011). Continental Airlines. Retrieved from http://www.unitedcontinental holdings.com/.
Butcher, D. (2009, October 28). Mobile Marketer. Retrieved from http://www.mobilemarketer.
com/cms/news/advertising/4508.html.
Continental advertising. (2011). Continental Airlines. Retrieved from http://www.continental.
Airline Industry Analysis
This report aims to present a summary of findings for a research study regarding the airline industry. The objective of this project was to first, gain new experience in the analysis process of an entire industry from an economic and business perspective as well as an environmental and social viewpoint. Secondly, the research attempts to provide direction for potential employment opportunities within the various aspects of the direct and indirect aeronautic and airline industry professions. The assessment of the airline industry entailed centralizing facts through a combination of case studies, governmental studies and reviews of both primary and secondary data research sources. In this scenario, case study and the vast amounts of secondary data offer a plethora of information which constitutes a comprehensive review of the aspects of the industry. Thus, the information was acquired through sources such as:
Physical Searches: searching core journals, relevant books and…
References
Airbus. Flagship of the 21st Century. (June 2004.) Retrieved July 15, 2005, from http://www.airbus.com/media/a380_family.asp
Bureau of Labor Statistics. (n.d.). Consumer Price Index. Retrieved July 15, 2005, from http://www.bls.gov/news.release/cpi.toc.htm
Bureau of Labor Statistics. (n.d.). Employment Situation. Retrieved July 15, 2005, from http://www.bls.gov/news.release/empsit.toc.htm
Costa, Peter R., Harned, Doug S., & Lundquist, Jerrold T. (2002). Rethinking The Aviation Industry: New Strategies Could Help The Business Recover-But Will Also Put More Pressure On Established Players. The McKinsey Quarterly.
One-to-one marketing allows premium pricing as well as increased sales volume to particular unique micro markets. Studies show that as customer satisfaction and loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value that other alternatives do not provide (Giddens, 2002).
Long-haul international business travelers and short/medium-haul domestic business travelers are the customers that are not price sensitive and are, therefore, the best market segments for the legacy carriers to target. However, as legacy airlines have tried to compete with low-cost carriers on price, they've had to cut back on things business travels value such as a large selection of destinations and flight options leg room, meal service, and airline clubs. As a result, legacy service really isn't that differentiated from the low-cost carriers. Legacy airlines need to think of inexpensive ways to set…
Bibliography
Airline. Retrieved from Web site: http://airline.biography.ms/
Air travel demand elasticities: Concepts, issues and measurement. Retrieved from Web site: http://www.fin.gc.ca/consultresp/Airtravel/airtravStdy_3e.html
American Airlines re-launches direct corporate booking oortal CorporateAAccess.com (2005, November 17). Retrieved from Web site: http://biz.yahoo.com/prnews/051117/dath051.html?.v=23
American cancels some flights on fuel costs (2005, September 30). Associated Press. Retrieved from Web site: http://news.yahoo.com/s/ap/20050930/ap_on_bi_ge/airlines_jet_fuel
While the industry appears to be heading to a less prescriptive approach to fatigue management there is still a place for traditional regulations that limit the number of hours worked vs. The new thoughts of "comprehensive plans" that help identify fatigue and mitigate risks. It is possible that a flight attendant error, due to fatigue, could possibly result in the death or serious injury to some of our passengers. (Battelle,1998)
Therefore, it is crucial that we be just as concerned with flight attendant fatigue as pilot and mechanic fatigue if we hope to achieve the aviation goal of preventing accidents and saving lives.
The Acme Air Planned Solutions
Acme's first step was to gather crew input. Categories of the changes recommended by crews and adopted by Acme Air to reduce fatigue include:
Category:
Includes:
est Eliminate scheduled reduced rest
Eliminate reduced rest
Longer rest periods
Shorter duty Shorter duty days…
References
Battelle Memorial Institute. (1998) A Review of Issues Concerning Duty Period Limitations,
Flight Time Limitations, and Rest Requirements. Federal Aviation Administration (AAR-100). Washington, D.C.
Caldwell, J.A. (1997) Fatigue in the Aviation Environment: An Overview of the Causes and Effects As Well As Recommended Countermeasures, Aviat Space and Environ Med 1997, 68:932-8.
Co, E.L., Gregory, K.B., Johnson, J.M., and Rosekind, M.R., Crew Factors in Flight Operation
Added security restrictions can cause delays that may result in flights being canceled, which are more difficult for smaller airlines to deal with. The weather-related delays that paralyzed Jet Blue during the Valentine's Day storm of 2007 are further evidence of this fact.
Sociocultural
However, the entire airline industry may suffer if the burdens and troubles of flying become too great. Industries are able to use technology to connect with different corporate branches, such as the Internet and video conferencing. Families may wish to forgo the possible hassles of air travel, and stay closer to home on vacations. This could result in decreased demand, especially for business travelers and flights to popular vacation destinations. The culture of the nation could deemphasize making travel part of the traditional family vacation, and part of the organizational culture of some critical industries.
Technological
Advances in communicative technology could thus work against the airline…
Works Cited
U.S. Airline Industry: Emerging Trends." (2006). www.AviationPlanning.com.Retrieved 13 Apr 2007 at http://www.aviationplanning.com/RAAPres/BoydRAAPres.pdf
Unisys Predicts 10 Trends That Will Drive Global Airline Industry Transformation in 2005." (Jan 2005). Enterprise Networks & Servers. Retrieved 13 Apr 2007 at http://www.findarticles.com/p/articles/mi_qa4137/is_200501/ai_n9521305
Airline is the dream of many countries and it is a difficult dream to achieve for a small country like Haiti. The country is a wonderful place to visit and the reputation of different areas of the country is due to different reasons -- Jacmel in the south eastern part of the country is supposed to have a reputation for very good coffee. Another very famous product of the country is Voodoo and that is known by many people in the United States. They have all heard about it, do not know what it is, but would surely like to go to the place where it started from. The country is beautiful with wonderful sandy beaches, but the people there are very poor and their life certainly deserves an improvement. There are many places to visit even in Port au Prince and they can be listed as Marche de Fer…
References
A Guided Tour of Port-au-Prince & Jacmel, Haiti. 27 February, 2000. Retrieved from http://www.epinions.com/trvl-review-389D-FE0890B-38B9DECF-prod4
Accessed on 8 July, 2005
Flight Results. Retrieved from http://www.kayak.com/s/flights.jsp?searchid=GLUvVW37ZsRmzp_RbpYn
Accessed on 8 July, 2005
Airline Terrorism
As the name implies, terrorism is an attempt to provoke fear and intimidation. Therefore, terrorist acts are intended to attract wide publicity and provoke public shock, outrage, and/or fear. The intent may be to provoke disproportionate reactions from governments, and they are intended to achieve political or religious goals, not personal gain.
Many definitions of terrorism exist, produced by the politicians, media, academics, think tanks, and of course by government. Law enforcement agencies and intelligence agencies have formulated most of these official definitions. Official definitions have the most impact, because they determine anti-terrorism policy. Most of them outline primary criteria: the target, objective, motive, perpetrator, and legitimacy or legality of the act.
It is commonly held that the distinctive nature of terrorism lies in its deliberate and specific selection of civilians as targets. Furthermore, an act is more likely to be considered terrorism if it targets a general…
Bibliography
Ahlers, Mike M. "9/11 panel: Hijackers may have had utility knives." CNN.com. 27 January 2004. 24 July 2005 .
Air Accidents Investigation Branch. "No:2/90 - Boeing 747-121, N739PA, at Lockerbie, Dumfriesshire, Scotland." 24 July 2005 .
American Civil Liberties Union. "Privacy & technology: Feature on CAPPS II." 5 September 2003. 24 July 2005 .
Cameron, Carl, Marla Lehner, Paul Wagenseil. "Pakistan to Demand Taliban Give Up Bin Laden as Iran Seals Afghan Border." Fox News. 16 September 2001. 24 July 2005 .
Airline industry has had a very tough last decade where growth rate was consistently slowing down and profit margins were shrinking every year. This year too, the industry does not mean to have very favorable outlook because macro-environmental factors are not very encouraging. The government on its part has been trying to improve conditions for airline industry which has resulted in more privatization. This means the government itself has lower involvement directly in airline industry thus allowing private sector to have higher control on prices. This helps in improving profit margins because price control measures are not very stringent. However the government has announced that from now on, ticket agents will not be allowed to advertise prices without taxes and other fee. They will have to mention the whole price that would include everything from taxes to various surcharges. This means that airline industry can no longer try to attract…
References
Hooley, G. Marketing strategy and competitive positioning.3rd edition.
Airline ticket prices might seem illogical at times, but they are actually based on careful consideration of the different contributing factors. To the outside observer, the distance between airports is probably the most important factor, but in reality there many other considerations that are just as important if not moreso. The cost inputs are a factor and these affected by the distance, but competition also plays a critical role, as does the perishability of the product.
McAfee (2006) argues that the most important variable is competition. The number of airlines competing on a given route has become a critical variable since the deregulation of the airline industry in the United States brought about conditions of competition on most routes. Thus, the most popular routes are highly competitive and it is with these routes that prices are the lowest. This explains why some routes to smaller centers are subject to higher…
Works Cited:
Devlin, K. (2002). The crazy math of airline ticket pricing. Mathematical Association of America. Retrieved February 13, 2012 from http://www.maa.org/devlin/devlin_09_02.html
Investopedia. (2012). Economics basics: Demand and supply. Investopedia. Retrieved February 13, 2012 from http://www.investopedia.com /university/economics/economics3.asp
McAfee, M. (2006). How do airlines set their ticket prices? Slate Magazine. Retrieved February 13, 2012 from http://www.slate.com/articles/news_and_politics/explainer/2006/11/how_do_airlines_set_their_ticket_prices.html
Airline & Airport Security
ith the United States at war with Iraq and after the devastating effects of September 11th, airline and airport security are paramount to most American travelers. But, even before terrorists used two jetliners as weapons of mass destruction and flew them into the orld Trade Center, airline and airport security was a major concern for most of us.
Before we take a closer look at the state of security today in the airline industry, it is important to understand the history of aviation security. The first major incident that happened on a U.S. airplane was the D.B. Cooper skyjacking in 1971. The man, who bought a ticket under the name of D.B. Cooper, demanded a large sum of money. If he didn't get it, he threatened to blow up the plane with explosives he was able to smuggle onto the aircraft in his carry on luggage.…
Works Cited
The White House. Ed. The White House. The White House. 27 Mar. 2003 http://www.whitehouse.gov .
Boyne, Walter J. "Air Safety Needs 1st Class Treatment." Newsday 03 Feb. 2002: A25.
Crabtree, Susan. "President Joins Air Security Push." Roll Call 25 Oct. 2001.
Eisenberg, Carol. "Airport Security: Unmatched Performance, Unaccompanied Bags and the Lesson of Pan Am 103." Newsday 16 Dec. 1996: A06.
Airline Industry
SWOT Analysis of the Airline Industry
The airline industry offers transport services of people, cargo, and mail. Its development began in the 19th century, where the conception of the airships and, eventually, the flights of the Wilbur brothers via their airplane invention made flying for leisure possible. The development of air transportation for people includes the provision of cargo and mail services, made possible through air freights (such as the Federal Express service).
The SWOT analysis of the current situation of the airline industry in the country today shows, interestingly, a direct link to socio-political issues that are prevalent nowadays, be these issues national (or domestic) and international.
Strengths of the airline industry include are its privilege of deregulation, development of new aircraft technologies, and geographical landscape of the United States, making it imperative for people to travel (at their convenience) via airplane flights. Deregulation of the airline…
Airline Fares
First off, I am compelled to suggest a caveat. There have been times when my dry cleaning bill has exceeded the cost of my ticket to fly. I have been singularly struck with the inappropriateness of that disparity. Airfare has become commoditized -- travelers expect an extraordinary service and convenience for a small price. Consider the cost to travel a distance equal to that attained in a flight by any other means of travel, including meal and lodging costs -- airfare is remarkably inexpensive. All things considered, there are amazing bargains to be had in airfare, such that, tacking on a, say, $50 each way for two checked bags seems a small price to pay.
That said, my position is that airlines should continue to charge for baggage -- both checked and carry on. Different pricing schedules should apply to baggage, depending on where the baggage will be…
These inconveniences associated with air travel have led many passengers to choose other forms of transportation including driving and taking the train. The research also found that the development of the Travel Promotion Act which is designed to specifically assist in reversing the decline in international travel to the United States.
Problems Arising from deregulation in the Airline Industry
Airline Industry dominated by a limited number of players
Indeed, although there have been many researchers that have praised the presence of deregulation in the airline industry, many have regarded deregulation as the primary source of the demise of the airline industry. According to Goetz & Vowles (2009) as a result of deregulation there have been many mergers and consolidations that have led to a small number of airlines dominating the airline industry in some markets in the United States. In addition, "The widespread adoption of hub-and-spoke networks, in conjunction with…
References
Competition and Regulation in the Airline Industry. Retrieved May 5, 2010 from; http://www.frbsf.org/publications/economics/letter/2002/el2002-01.html
Goetz, Andrew R., 2002. Deregulation, competition, and antitrust implications in the U.S. airline industry. Journal of Transport Geography 10 (1), 1 -- 19.
Goetz a.R., Vowles T.M. (2009) the good, the bad, and the ugly: 30 years of U.S. airline deregulation Journal of Transport Geography 17 (2009) 251 -- 263
Fletcher M.A. 2010. Obama signs Travel Promotion Act. http://voices.washingtonpost.com/44/2010/03/obama-signs-travel-promotion-a.html
Airline Marketing Approaches
Importance of Airlines marketing, and types of marketing approaches
a) Briefly explain the concept of airline marketing approach
Airline marketing is a vital activity for air transportation. As with any marketing activity, it is aimed at increasing the number of passengers and satisfying their travelling needs. Marketing involves analysis of consumer trends and specifying products that are in line with these trends. Pricing considerations are also vital, and they are carried out in marketing. Airline marketing should ensure that ticket prices are pocket friendly and attractive (Miseti?, Steiner, & Tatalovi?, 2012). The prices should not be so low that the airline is not able to meet its cost nor too high that consumers are unable to afford. The concept of airline marketing is involved with specifying the different products, coming up with the product prices, informing consumers regarding the products, and coordinating the delivery of the products.…
References
Airline Trends. (2013). The state of airline marketing, from http://www.airlinetrends.com/wp-content/uploads/2013/04/The-State-of-Airline-Marketing_airlinetrends_simpliflying_April2013.pdf
Miseti?, I., Steiner, S., & Tatalovi?, M. (2012). Factors of Airline Marketing. PROMET-Traffic&Transportation, 19(1), 11-19.
Zou, B., Elke, M., Hansen, M., & Kafle, N. (2014). Evaluating air carrier fuel efficiency in the U.S. airline industry. Transportation Research Part A: Policy and Practice, 59, 306-330.
, 1992). However, the daily problem was the most central component of the crew-pairing optimization process. The first step in the solution of the daily problem involved the use of a code that that attempted to adapt the daily solution from previous months into the month at hand. Then, another code was used to select and solve a sub-problem so that the initial solution could be improved upon. This latter step consisted of three sub-phases (Anbil et al., 1992). First is the selection of the subproblem, which is instigated by choosing a number of pairings that cover the daily flight segments from all the available pairings. This results in the sub-problem consisting of segments that are covered by the newly chosen set of pairings, which leads to the second phase, pairing generation. This phase takes the smaller number of segments from the first phase and generates all possible pairings. At…
Reference
Trick, M.A."Airline Crew Scheduling." A Consultants Guide to Solving Large Problems September 11, 1996, http://mat.gsia.cmu.edu/mstc/decomp/node5.html .
AirTran Airways Selects PairingSolver Software From CALEB Technologies; Revolutionary Crew Planning System Boosts Operating Efficiency." Business Wire. December 17, 2001.
Anbil, R., Tanga, R., Johnson, E.L. "A global Approach to Crew-Pairing Optimization." IBM Systems Journal 31 (1992): 62-70.
Lastly the FAA would be a stakeholder as well, since it is the organization that is going to be held responsible for any children that die because of the decision. In cases such as these the FAA (or any other government organization) needs to be informed as well as to be informing. Communication lines between the public, both to and from, need to be open and presented with sincerity from both directions. Free flowing communications coupled with frank, open discussions on the why's and wherefores of the decision would be the best possible scenario, but since the discussion is centered around a government entity, that type of event would probably never happen (says the cynic). Making a decision by communicating between all parties is probably the best way to do so but I would not hold my breath on having a described scene such as this actually happen, especially since…
Such techniques as internet marketing, reservations, and sales; electronic ticketing and check-in; online quality control, resource planning, operational oversight, cargo and baggage tracking, and customer service, all will reduce staffing requirements while offering ease-of-use and greatly enhanced access by, and convenience to, the customer.
(10) ecognition that not everyone is geared for the electronic world, leading the proposed airline to provide a high level of non-electronic service as well, particularly to the many newer, less-experienced travelers - but future loyal customers - found in the region.
(11) Ensuring a friendly, cooperative, enjoyable, yet highly professional face to the customer.
(12) Development and implementation of cooperations, associations, and partnerships with other larger, more established, and highly regarded airlines both within and beyond the region to provide an extensive range of connections, through fares, frequent-flyer mileage sharing, and other passenger and client advantages through interline arrangements, code shares, common hubbing, and so…
References
Zalzala, Ali and Udaipurwala, Anis Abbas (2010) Enterprise Level it Strategy for the Airline Industry. 16 -- 18 Mar 2010. International Conference on Technology and Business Management. Retrieved from: http://library.imtdubai.ac.ae/Faculty%20Publication/alizalzala/Alizalzala.pdf
Plunkett, J.W. (2007) Plunkett's Airline, Hotel & Travel Industry Almanac 2008. Plunkett Research Ltd. 2007. Retrieved from: http://books.google.com/books?id=IzJFdqBGQswC&dq=Dubai+Airline+Industry,+Environment,+Business+Plans&source=gbs_navlinks_s
Sell, Bill (2009) Bright Prospects. Boeing Frontiers. Sept 2009. Retrieved from: http://www.boeing.com/news/frontiers/archive/2009/november/mainfeature.pdf
Air Leo Business Plan (nd) Business Plans Online. Retrieved from: http://www.bplans.com/airline_business_plan/management_summary_fc.php
ONE: This article is fully appropriate to review because Binggeli, et al., writing in the McKinsey Quarterly explained that a survey of 17 major airlines worldwide revealed that "even the most sophisticated" among those carriers have "only a rudimentary understanding of who their most valuable customers are or could be." Nor do those airlines understand which free rewards programs "are most effective in ensuring loyalty. Indeed, many airlines cannot identify "their most valuable customers" because their frequent flyer programs are "little more than a general ledger system" that basically tracks how many miles a traveler has accrued and how many he or she has spent.
TO: Meanwhile, how does an airline known which of its rewards programs is making a profit? First of all, according to Gujarathi in Issues in Accounting Education, it's appropriate to explain that Sun Airlines Incorporated (SAI) records free rewards as a liability, and it is…
Works Cited
Atalik, Ozlem. (2005). Impact of the Reward Program Elements on Airlines Customers: Case
Of Turkish Airlines. Elektronik sosyal Bilimler Dergisi, 4(14), 17-33.
Binggeli, Urs; Gupta, Sanjay; and de Poomes, Carlos. (2002). CRM in the air. The McKinsey
Quarterly, 6-13.
Innovation is our signature. We foster creativity and vision to provide solutions beyond today's boundaries ("FAA Mission)."
JAA
The Joint Aviation Authorities (JAA) was developed in the 1970s by a handful of major European National Aviation Authorities when they began to join activities. The JAA was established for the purposes of developing a platform for a cooperative safety regulatory system because they desired to have a uniform high standard of aviation safety. Simultaneously, the JAA effectively became the European counterpart of the U.S. FAA ("Background").
In the time after the JAA was created the organization began to collaborate with the FAA to harmonizing rules and regulations where possible. In addition the JAA also signed Bilateral Agreements with other Aviation Authorities, including Transport Canada. In 1991 JAA established their headquarters in Hoofddorp, the Netherlands ("Background"). In addition it was during this time that more European National Aviation Authorities (NAA) became JAA…
References
Airline Data and Analysis. viewed 19 August, 2010,
Aston, A. AU.S./EU Dogfight Over Greener Air Travel. viewed 19 August, 2010,
In response, companies are using technology to create nimbler workforces, enhance customer service, and personalize services. All the while, they're making hard choices about which projects get funded and which don't. Last month, FedEx introduced software that lets customers print jobs directly from Microsoft Office on their PCs to any of the 1,200 Kinko's stores -- then FedEx delivers the jobs to clients. FedEx bought the copy-shop chain for $2.4 billion earlier this year. Meanwhile, FedEx is changing its distribution systems to support the smaller loads that customers are shipping and to keep up with international growth that's adding the most to the company's profits. At UPS, making drivers' schedules more precise could save $600 million a year in fuel costs and drivers' time by 2007, VP of engineering Mark Hopkins predicts. The company is rolling out a computer system called "package flow technologies" that aims to make UPS's delivery…
References
Ghobrial, a. And W.A Irvin. Combating Air Terrorism: Some Implications to the Aviation Industry. Journal of Air Transportation. Omaha: 2004.Vol.9, Iss. 3; pg. 67-87.
IT Keeps Logistics Vendors Rolling Sept. 20, http://informationweek.com/story/showArticle.jhtml?articleID=47212210
Karp. Aaron Bracing for Cargo's Crackdown (2004). Retrieved December 4, 2004 from http://www.aircargoworld.com/features/0404_2.htm
Airline
Transportations on Economy
Impacts of Airline Transportations on Economy
INTIDUCTION
The rapid rise in the use of air transportation since deregulation in 1978, coupled with the unprecedented financial crisis in the airline industry after the September 11 terrorist attacks raises questions on how vulnerable the nation is to significant interruptions to its air transportation system[footnoteef:1]. In an attempt to better understand its national importance; this paper examines some aspects of how the air transportation system has had an impact on the economic structure and social behavior in the United States. To help identify these economic and social impacts, a conceptual model of these interdependencies was developed to structure the analysis of this paper. In light of this framework, two major changes in the air transportation system are evaluated. The first change was the deregulation of the airline industry in 1978. Fundamental changes in airline services occurred after the Civil…
References
1. Air Transport Association, Annual Passenger Prices (Yield), U.S. Scheduled Airlines. Washington: ATA, September 4, 2002. Available online from: http://www.airlines.org/
2. Air Transport Association, Annual Traffic and Capacity: U.S. Scheduled Airlines. Washington: ATA, 2003.
3. Air Transport Association. Monthly Passenger Traffic Report -- Scheduled Service Only. Washington: ATA, 2003.
4. National Research Council, Transportation Research Board. Winds of Change: Domestic Air Transport since Deregulation. Special Report 230. Washington DC: Transportation Research Board, 1991.
Airline Industry
It is probably an indelible image on each American's memory, the vision of the two hijacked airlines plowing into the World Trade Center towers in New York. ut did any of us know at that time what a significant event this would be to the economy of not only the United States but the world. The events of September 11, 2001 served to set in motion a cascade of events, some unrelated, which have been devastating to the financial stability of the airline industry as a whole. esides fears about safety on domestic and international air travel, what other events have had a significant impact of the airline business? Why did they have effect? And what measures have the airline industries taken to combat these effects and remain solvent and successful businesses in the mean time?
The investment made in the September 11th attacks was relatively small -…
Bibliography
IATA Corporate Communication, Airlines Refine Battle Plans to Fight SARS, 24 April 2003
Doganis, R, The Airline Business in the 21st Century, Routledge Press, New York, 2003
Doganis, R. Flying Off Course, Routledge Press, New York, 2001
No author listed, SARS Effect on flights more severe than war. Dallas Business Journal, 12 June 2003
How frequently and for what purpose (i.e. vacation, business, family visits) do you typically fly?
Do you usually fly alone or with company? If the latter, please describe you usual companion(s) (i.e. business partner(s), family, spouse/significant other, etc.).
What influence do you believe marketing materials have on your decision making in choosing an airline?
Please describe an experience you have had with a low-cost airline (or other service, if no airline experience is applicable), positive or negative.
Please describe an experience you have had with a luxury airline (or other service, if no airline experience is applicable), positive or negative.
How do you typically book travel accommodations>
What features (including price) are of greatest importance to you in your selection of travel accommodations?
What is your overall perception of the airline industry?
What is your knowledge and impression of Thai Air Asia?
What is your knowledge and impression of Thai…
Yolo Airlines Concept Paper
YOLO Airlines will be presenting to its target market what some of its bigger competitors are not likely to offer. In addition to offering an accommodating environment for fun-loving young urban professionals, our airline will also seek to ensure that its pricing is competitive enough for its target clientele. The marketing as well as business strategy is adapted to ensure that the airline is able to absorb unmet global demand which has been sufficiently described in the previous presentations.
Budget and Funding Requirements
Operating Expenses
Year Pre-op 2019 2020
Salaries and Benefits 450,000 2,430,000 4,331,000
Fuel - 3,321,000 7,900,000
Landing Fees - 150,000 310,000
Maintenance - 2,107,000 4,212,000
Navigation Fees - 760,000 1,200,000
Ground Handling - 960,000 1,550,000
Insurance - 225,000 390,000
Other Expenses 507,000 2,098,000 3,200,000
Total Operating Expenses 957,000 12,051,000 23,093,000
Indirect Costs
Year Pre-ops 2019 2020
Advertising Expense 420,000 1,100,000 1,700,000
Technology and…
This comes after a period of lowering the interest rates to curtail the post-2001 recession that was particularly detrimental to the economic performance of the airline industry. The rate of interest affects consumer's disposable income, and as consumers find it more expensive to borrow money, they are less likely to have disposable income to expend upon leisure-based trips, thus meaning discount rather than full-price fares further cut into industry profits. The price of air travel, as noted by the U.S. Board of Transportation, has continued to decline for consumers, while the price of fuel and other inputs into the transportation industry has increased for the industry, meaning that the Federal Reserve actions, if interest rates continue to increase, will not help the airline industry.
orks Cited
Henry Fund Research. (14 Apr 2005) Publication of the University of Iowa Henry B. Tippie School of Management. Retrieved 2 Sept 2005 at http://www.biz.uiowa.edu/henry/2005%20Reports/Airlines.pdf…
Works Cited
Henry Fund Research. (14 Apr 2005) Publication of the University of Iowa Henry B. Tippie School of Management. Retrieved 2 Sept 2005 at http://www.biz.uiowa.edu/henry/2005%20Reports/Airlines.pdf
White House Economic Statistics Briefing Room: Transportation." (2005) Publication of the United States Department of Transportation. Retrieved 2 Sept 2005 at http://www.bts.gov/publications/white_house_economic_statistics_briefing_room/april_2005/pdf/entire.pdf
Airline Performance eview and Analysis
TKL Air Lines will be an American Airline that will be operating in the multiple routes across North America in the United States, Canada and Mexico. TKL will provide the cargo and passenger services serving more than 30 destinations. The company will also be serving up to 10 million customers yearly, and more than 1,500 customers for the daily flight. TKL's major activities will include inbound logics, operations, outbound logistics, services, marketing and sales. Our company will focus on the underserved and unserved routes to the meet the needs of the unmet market demands. We will be serving the niche market where the market demand is generally unmet to meet the key traffic demand on some key seasonal, regional and variable routes. Moreover, we will integrate the latest information and electronic technologies to enhance maximum efficiency as well as cutting the marketing and operating costs.…
Reference
Zucchi, K. (2015). How to Value Airline Stocks. Investopedia.
airline ticket pricing varies depending on which day the passenger wishes to fly. his is an important question because it will provide the data necessary to passengers who wish to save money, assuming, of course, that these passengers also have the flexibility to travel on certain days. Considering the fact that most airline passengers are going to pay more to travel via air than they would via almost any other form of transportation, one would think that lowering the expenses of air travel would be appealing to a majority of those traveling via air.
It is assumed that there are trends to air travel and that the airlines track those trends. Assuming that those trends show air travel is not as feasible on certain days of the week, it could also be safely assumed that the airlines would then likely lower the cost of air travel on those days to…
The third (and last) website used was www.aa.com. This website is the home of American Airlines, a regularly priced 'mainstream' airlines. American Airlines had a bevy of pricing available depending on specific flights and times. An example would be the pricing to travel from St. Louis to Salt Lake City on a Sunday was quoted at a starting price of as low as $246 and as high as $1,145. Monday pricing started at $297 and was as high as $931. Tuesday through Saturday pricing was $187 - $911. The return trip from Salt Lake City to St. Louis was as equally diverse.
The data showed that during a one-week timeframe in early January, 2011 that the pricing that could be found on various websites provided opportunity for a passenger to fly from St. Louis, Missouri to Salt Lake City, Utah for as little as $187 or as high as $1,145.
The data also showed that for the discount airline there was no difference in pricing based on the days of the week while at the 'major' airlines there was not only a difference based on the day chosen to fly, but on the times and flight availability as well. The ticket brokering website provided pricing based on availability of specific flights and airlines.
Economics
Explaining Airline Ticket Prices with Supply and Demand
Airline ticket pricing is known to be dynamic, with the airfares increasing and decreasing. It may appear logical that tickets will be priced differently depending in the distance travelled; with tickets for longer distance at a higher price compared to tickets for short distance flights. However, pricing does not operate in this manner, and ticket prices may have nothing to do with the distance travelled, but reflect the supply and demand conditions.
The concept of supply and demand indicates the way prices are reached in any market. To consider why tickets to Casper, Wyoming to Denver, Colorado, and from Denver to Orlando, Florida may be the same, the first stage will be to look at how supply and demand impacts on price. In general terms, as the price for a product or service increases the demand will decrease, as the product…
Analysis and Recommendation
As CO2 emissions may be reduced by 80% through the conversion process of conventional jet fuel to sustainable biofuels, it is important that airlines begin to implement this conversion process with all appropriate models. The commercialization of these fuels will begin once the demand is in place, and the demand must come from the consumers. For the airlines interested in reducing their environmental footprint, a policy of corporate social responsibility (CSR) will help to support this conversion process and show stakeholders that the companies are interested in reducing the amount of toxic emissions that are distributed by carriers.
Another option is for carriers to be more logistical in terms of how they perform their routes. By implementing more intelligent ATM (Air Traffic Management) systems alongside better airport infrastructure, congestion in the skies and airports can be prevented, which would substantially reduce the amount of fuel burn that…
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001).
By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to increase for the foreseeable future. For example, according to Janda, Flouris and Oum (2005), global air passenger traffic increased from 1.573 trillion revenue-passenger-kilometers (RPK) in 1985 to 3.394 trillion in 2000, representing a 116% increase during this decade-and-a-half period, or an average annual compounded growth of 5.26%. Furthermore, between 1985 and 2000, air freight traffic grew at even faster rate than passenger traffic (Janda et al. 2005). These authors also emphasize airlines are directly affected by the larger economy in…
Network." 2010, October 7 Canada NewsWire Group. [online]. available:
On the price dimension of the marketing mix, the company continues to compete with low-end and state-funded carriers, who arguably have a competitive advantage due to their funding source. Nonetheless, 1 Time is fighting the good fight of customer service and delivering value at their price points (Mantshantsha, 2007).
Of all aspects of the company's marketing mix, this one is struggling the most as it strives to capture more of the business traveller market. The promotional strategies are tied to the company's website and to limited direct marketing through social networks, yet is weak at defining a connection between the extensive MO strengths the company has and the ability to translate that into customer value. The lack of connection between the reliability base the company has and the success of its business travellers is a major weakness in the promotional strategy.
On the place dimension of the marketing mix, the…
References
Josh Bernoff & Ted Schadler. (2010, July). Empowered. Harvard Business Review, 88(7, 8).
Kristina Heinonen, Tore Strandvik, Karl-Jacob Mickelsson, Bo Edvardsson, Erik Sundstrom, & Per Andersson. (2010). A customer-dominant logic of service. Journal of Service Management, 21(4), 531-548.
Kelly, B. (2008). LIFT OFF. Finweek, 18. Retrieved from Business Source Complete database.
Liou, J., Yen, L., & Tzeng, G.. (2010). Using decision rules to achieve mass customization of airline services. European Journal of Operational Research, 205(3), 680.
history of the Air Line Pilots Association (ALPA) and its achievements throughout its seventy years. Safety regulations, issues of aviation concern, and milestones in union negotiations are discussed.
THE AIR LINE PILOTS ASSOCIATION
ith the recent terrorist attacks in the United States, airline safety has been of top concern. Six months ago airport security was seldom discussed except perhaps in an article tucked in a newspaper or magazine. Now it's a top story on the evening news every night. It makes us wonder if anyone has been thinking of our safety until now.
The Airline Pilots Association has always been thinking of our safety. From metal detectors in airports to the 'fasten seat belt' signs on airliners, the APLA was responsible.
The ALPA is regarded as the leader in safety issues concerning all areas of aviation
(http://www.alpa.org/internet/news/1997news/NR97066.htm).
The Air Line Pilots Association (ALPA) not only helps with safety issues and…
WORKS CITED
Air Line Pilots Association:
http://www.alpa.org/internet/about.html
http://www.alpa.org/internet/news/1996news/NR96029.htm
http://www.alpa.org/internet/news/1996news/NR96037.htm
Delta Airlines
The author of this report has been asked to review companies that are on either the good or bad end of financial soundness. The author will focus on the bad end and the company that shall be the focus is Delta Airlines. The questions that will be answered as they relate to Delta will include an identification of the company, their "domestic environment," a summary of the company's industry, how long they have been in business, and the attribute that they are least admired for. Further, there will be the identification of a business theorist and the theory that they offer that would or should apply to Delta. The final few points will be how domestic government regulations have affected Delta, what can be done to overcome these regulations, an incorporation of the prior-mentioned theory into that execution and an over offering of critical thought on the matter.…
References
Delta. (2015). Airline Tickets and Flights to Worldwide Destinations - Delta Air Lines. Delta.com. Retrieved 20 September 2015, from http://www.delta.com/
Harris, F. D., & Emrich, R. M. (2007). Optimal price -- cost margin, service quality, and capacity choice in city-pair airline markets: Theory and empirical tests. Journal of Revenue & Pricing Management, 6(2), 100-117. doi:10.1057/palgrave.rpm.5160074
NY Post. (2014). The worst airlines in America. New York Post. Retrieved 20 September 2015,
from http://nypost.com/2014/08/08/the-worst-airlines-in-america/
POST-9/11 Management OF U.S. AILINE INDUSTY
Strategic Management of the United States
Airline Industry after the 9/11/2001 Terrorist Attacks
Strategic Management of the United States
Airline Industry after the 9/11/2001 Terrorist Attacks
Airlines in the United States have a long, complicated history in terms of management strategy that includes alterations due to technological advances, bankruptcies, economic downturns, deregulation and even presidential intervention, but none of these forces had the power to both destroy and restructure the industry like the events of September 11, 2001.
The 9/11/01 attacks on the United States fundamentally altered the way the U.S. airline industry operated both publically and internally. One area that suffered significantly from these attacks, and brought about the need for major overhaul within the industry itself was strategic management strategies and practices within the airline industry in its entirety. The 9/11 attacks on America brought about the need for immediate change in…
References
Allvine, F., Dixit, A, Sheth, J., and Uslay. (2007). Deregulation and competition: lessons learned from the airline industry. Print. Los Angeles, CA: Sage.
Alvesson, S. And Karreman, D. (2009). Critical performativity: the unfinished business of critical management studies. Human Relations, 62.4. pp. 537-560. Web. Retrieved from: ProQuest Database.
Belobaba, P. (2002). The airline industry since 9/11: overview of recovery and challenges ahead. MIT Global Airline Industry Quarterly. March 2002:1. pp. 1-11. Web. Retrieved from: EBSCOhost Database.
Besant, C. (2002 September 1). Chaos followed 9/11 in the aviation industry. Turnaround Management Association Journal of Corporate Renewal, 12:1. pp. 1-3. Web. Retrieved from: LexisNexis Database.
This venture will be executed on the key of obtaining the right combination. Through a strong corporate culture, the new airline will differentiate itself from other Hawaiian Airlines (Cameron, 2012).
Not just an airline but also a lifestyle: our company will differentiate itself from the traditional Hawaiian Airlines. Our customers will be identified with a lifestyle. We have employed the services of the lading interior designer to work on the interiors of our aircrafts. This designer is viewed as the most fashionable in the world (Nicas, 2013).
eferences
American Airlines (2011). Spots Highlight Ease of Travel Experience with American's
Innovative Products and Services. American Airlines. etrieved on 13th Feb 2013 from http://aa.mediaroom.com/index.php?s=43&item=3340
Das, TK & eisel, William D. (1997). Strategic marketing options in the U.S. airline industry
International Journal of Commerce & Management 7. 2: 84-98. etrieved on 13th Feb
2013 from http://search.proquest.com.ezproxy.apollolibrary.com/docview/212798957
Cameron, D. (2012). Airlines Shuffle Marketing Alliances.…
References
American Airlines (2011). Spots Highlight Ease of Travel Experience with American's
Innovative Products and Services. American Airlines. Retrieved on 13th Feb 2013 from http://aa.mediaroom.com/index.php?s=43&item=3340
Das, TK & Reisel, William D. (1997). Strategic marketing options in the U.S. airline industry
International Journal of Commerce & Management 7. 2: 84-98. Retrieved on 13th Feb
Southwest Airlines Organizational Culture
Analysis of Organizational Culture at Southwest Airlines
Application of the OCP Framework
Developing Organizational Culture at Southwest Airlines
Implementation of Organizational Culture
Organizational Culture as an Important Determinant of Organization's Success
Southwest Airlines is a world renowned air travel company and a low cost leader in airline industry of USA. Formed in 1971 by ollin King and Herb Kelleher, the company is committed to "providing highest level of customer service with pride and caring" to its varied market segments ranging from leisure travellers to freight transportation. The two most important stakeholders for the company are its employees and its customers. Southwest Airlines owns 520 different types of aircrafts and serves 411 cities and 63 million customers at 59 airports in 30 different states within the United States with its nonstop air travel service (Southwest Airlines Inc., 2010).
The major reason for company's 35 years of phenomenal…
References
Aguinis, H. (2009). Performance Management. Upper Sadle River, NJ: Pearson Prentice Hall.
Bailey, J. (February 13, 2008). Southwest. Southwest Way. New York Times, Business.
Box, T.M. (2009). Southwest Airlines 2007. Journal of the International Academy of Case Studies Vol. 15, 21-27.
Erdogan, B. & . (2010). Erdogan, B., & Bauer, T. (2010). Organizational Behavior. Flat World Knowled Organizational Culture . Flat World Knowledge.
suitable airline performance data, provide a discussion rivals North American Airline industry found hard match southwest airlines. 2)Discuss dynamic capabilities, distinct capabilities generally, a source competitive advantage fast-paced highly uncertain environments.
Southwest Airlines
The airline industry has generated unprecedented development within the society. Supported by technologic innovation, the airline industry has shifted balances in wars and fights and it has supported the advancement of the societies and economies. Due to the airline industry, people became able to travel to places once considered remote and as such to expand their cultural horizons, but also the business operations.
At its inception, the airline industry would be mostly owned and operated by the government, and this situation still applies in some of the countries in the globe. In the United States however, the airline industry has been subjected to deregulation and privatization and it is now characterized by high levels of competition. The…
References:
2012, The Global Competitiveness Index 2011-2012 rankings, World Economic Forum, http://www3.weforum.org/docs/WEF_GCR_CompetitivenessIndexRanking_2011-12.pdflast accessed on August 1, 2012
2012, The world factbook, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos last accessed on August 1, 2012
2012, Website of the World Economic Forum, http://www.weforum.orglast accessed on August 1, 2012
Business
outhwest Airlines (WA) has been a strong growth company for the last 40 years mainly due to its focal point on cutting costs. outhwest Airlines (WA) follows the Cost Leadership trategy in terms of Porter's four generic strategies and is the epitome of Blue Ocean trategy in its simultaneous pursuit of differentiation and low cost (Kim & Mauborgne, 2009.
That WA is cost-focused is evident from Liang et al.'s (2009) analysis of strategies that a company uses to differentiate itself. A successful company stands out by its association in the public's mind, and WA certainly stands out. Rollin King and Herb Kelleher's objective was: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline" (The Rise of outhwest Airlines) and its name,…
Southwest Airlines SWOT Analysis- http://www.businesstune-ups.com/Southwest-Airlines-SWOT-Analysis.html
The Rise of Southwest Airlines
http://www.advancebusinessconsulting.com/advance!/strategic-alignment/strategic-alignment-business-cases/the-rise-of-southwest-airlines.aspx
SERVQUAL Method: Airline Industry Use
The objective of this study is to examine use of the SERVQUAL method in the airline industry. This work will examine five articles on use of SERVQUAL.
The work of ozorgi (2007) entitled "Measuring Service Quality in the Airline Using SERVQUAL Model (Case of IAA)" reports that competition in the airline industry is constantly growing and that airline companies should pay close "attention to their competitors." (p.1) ozorgi notes that it is important as well for airlines to "understand their customers." (2007, p.1) The work of Nyeck, Morales, Ladhari, and Pons (2002) entitled "10 Years of Service Quality Measurement: Reviewing the Use of the SERVQUAL Instrument" reports that research on service marketing has traditionally focused primarily on the "analysis of service quality." (p.101) Additionally stated is that there are researchers in this discipline that "emphasize the explanation of the perceived quality by using the SERVQUAL…
Bibliography
Bozorgi, MM (2006) Measuring Service Quality in the Airline Using SERVQUAL Model (Case of IAA). Retrieved from: http://epubl.ltu.se/1653-0187/2007/046/LTU-PB-EX-07046-SE.pdf
Gilbert, D. And Wong, R. (2002) Passenger expectations and airline services: a Hong Kong-based study. Tourism Management 24 (2003) 519 -- 532. Retrieved from: http://myweb.ncku.edu.tw/~cfchen99/2006-18-18passenger%20expectations%20and%20airline%20services-%20a%20Hong%20kong%20based%20study.pdf
Huang, YK et al. (2009) The Effect of Airline Service Quality on Passengers' Behavioural Intentions Using SERVQUAL Scores: A TAIWAN Case Study. Journal of the Eastern Asia Society for Transportation Studies, Vol.8, 2009. Retrieved from: http://www.easts.info/publications/journal_proceedings/journal2010/100133.pdf
Nyeck, S.; Morales, M.; Ladhari, R.; and Pons, F. (2002) 10 YEARS OF SERVICE QUALITY MEASUREMENT: REVIEWING THE USE OF THE SERVQUAL INSTRUMENT* Ano 7, n." 13, diciembre de 2002. Retrieved from: http://www.esan.edu.pe/paginas/pdf/NyeckMorales.pdf
Classic Airlines has the reputation of being the world's fifth largest airline, which commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. Classic, around for more than 25 years, employs more than 23,000 employees and the year before this report earned $10 million on $8.7 billion in sales.
Classic also has a glorious reputation for its integrity with Labor Unions due to the fact that it accords fair wages to employees and pilots -- ranging on the high-end of the spectrum -- and catering to comfort of employees.
Unfortunately, whilst employees are content, consumers are not. The disaster of the recession coupled with terrorist scares has caused reduction in consumers flying the airlines with increasingly more of their former passengers selecting other flights.
Their top competitors are airlines such as United Airlines, Northwest Airlines, and British Airways who, although facing general threats…
Sources
Brown, A. The politics of airline deregulation Knoxville: University of Tennessee Press, c1987.
Bowler, G.M., Jr. (2010). Netnography: A method specifically designed to study cultures and communities online. The Qualitative Report, 15(5), 1270-1275.
Bunce. D (1997). What factors are associated with the outcome of individual-focused worksite stress management interventions? Journal of Occupational and Organizational Psychology, 1, 70, 1-17. Retrieved August 1, 2010, from ABI/INFORM Global. (Document ID: 11554203).
Freiberg, K. Nuts!: Southwest Airlines' crazy recipe for business and personal success Austin, Tex.: Bard Books, 1996.
Another issue is the legal/political power that Southwest has (or does not have, in relation to its rivals). Ultimately, the company has suffered as the result of the right Amendment, and it needs to leverage its current size to fight back against American Airlines over this legislation. Not only should Southwest fight for the amendment to be repealed in its entirety and immediately, but it should fight for punitive action against American Airlines and DF airport. A civil suit against these parties for the financial harm caused to Southwest could prevent them from undertaking such illegal and unethical actions in the future and could help Southwest to put AA out of its misery. Lastly, Southwest has had problems with its maintenance. The company spends a lot less than any of its rivals on maintenance, and while its accident in Chicago was ruled the result of pilot error, concerns over the…
Works Cited:
Chang, K. (2011). How Southwest Airlines beat the Wright Amendment. CNBC. Retrieved March 12, 2012 from http://www.cnbc.com/id/43714139/How_Southwest_Airlines_Beat_the_Wright_Amendment
Jacksonville Business Journal. (2012). Union slowing AirTran, Southwest merger. Jacksonville Business Journal. Retrieved March 12, 2012 from http://www.bizjournals.com/jacksonville/news/2012/02/27/union-slowing-airtran-southwest-merger.html
MSN Moneycentral. (2012). Southwest Airlines. Retrieved March 12, 2012 from http://investing.money.msn.com/investments/stock-balance-sheet/?symbol=us%3ALUV&stmtView=Ann
Mutzabaugh, B. (2012). Southwest's new routes begin to blend in AirTran cities. USA Today. Retrieved March 12, 2012 from http://travel.usatoday.com/flights/post/2012/01/southwest-new-routes/610164/1
financial statements Hawaiian Airlines 3 years. Access information contained Hawaiian Airlines balance sheet income statement calculate: • Liquidity ratios o Current ratio o Acid-test, quick, ratio o eceivables turnover o Inventory turnover • Profitability ratios o Asset turnover o Profit margin o eturn assets o eturn common stockholders' equity • Solvency ratios o Debt total assets o Times interest earned Show calculations ratio
Hawaiian Airlines Financial Analysis
Hawaiian Airlines is a relatively small airline operator at a global level, being the 11th by size in its own country. Still, the notable element about the company is that it is the flag carrier, which virtually means that the company receives governmental support in order to conduct its operations (Bennett, 2006). Hawaiian Airlines is an integrant party of the larger company Hawaiian Holdings, which has placed itself within the market as the company ensuring a quick access to a good time in…
References:
Bennett, S. (2006). A sociology of commercial flight crew. Ashgate Publishing
Cento, A. (2008). The airline industry: challenges in the 21st century. Springer (2012). Investopedia. http://www.investopedia.com accessed on October 4, 2012
Website of Hawaiian Airlines, http://www.hawaiianairlines.com / accessed on October 4, 2012
Staffing at Piedmont Airlines
Finding solutions at Piedmont Airlines
Overview of Organization
Piedmont Airlines is a fully owned subsidiary of U.S. Airways. U.S. Airways is the 6th largest airline in the United States (Piedmont Airlines, Inc., 2011). Piedmont flies 440 daily departures to 55 cities throughout the Eastern United States and Canada. They operate 44 DeHaviland DHC-8 Turbo prop aircraft as their primary fleet. The headquarters is based in Salisbury, Maryland. They employ nearly 4000 aviation professionals (Piedmont Airlines, Inc., 2011).
Like many organizations, Piedmont is facing problems with employee morale. Low employee morale is closely linked to high turnover rates in many organizations. Low morale also leads to low productivity. Employee satisfaction is one of the most important factors in maintaining an experienced workforce. Poor morale leads to excessive employee absences and a higher absence rate (CCH, 2007). This costs the company money and lost time. It also has…
References
CCH 2007 Unscheduled Absence Survey [Poor Morale Leads Up to Even More No-Shows. CCH Human Resources Management Ideas & Trends. 2007, Summer. Retrieved from www.CCH.com Web site: http://www.CCH.com
Grawitch, M., Gottschalk, M., & Munz, D. (2006). "The Path to a Healthy Workplace: A Critical
Review Blinking Healthy Workplace Practices, Employee Well Being, and Organizational Improvements." Consulting Psychology Journal Practice and Research.
58 (3): 129-147.
Classic Airlines
A Nine Step Cost Reduction Plan
Describe the Situation
Identifying the Potential Cause of the Problem
Verifying the Likely Causes by Gathering Data
Identifying Possible Solutions
Evaluating Alternative Solutions
Determining the Best Solution
Identifying and Assessing the Risks
Implementing the Solution
Evaluate the Results
Classic Airlines is currently the world's fifth largest airline which is operating a remarkable 2,300 flights daily to over 240 cities. In the previous period, net profits were roughly $10 million on $8.7 billion in revenues. However, Classic is experiencing negative publicity, declining stock prices, as well as the rising costs of fuel and labor over the past year. Furthermore the destructive reports coupled with low employee morale resulted in Classic's Board of Directors requiring a 15% cost reduction over the next 18 months. Management must quickly act to implement a nine-step problem solving method to overcome the obstacles and provide solutions to meet…
Business Studies
Southwest Airlines
Southwest Airlines has been a highly successful airline, it has been one of the most successful airlines in U.S. history with the low cost carrier model created by Southwest emulated successfully by many other airlines across the world. Today it is the largest domestic carrier in the U.S. And has a history of consistent profits, with on a few quarters in the recent recession showing losses (Southwest Airlines, 2013). There are numerous reasons behind the success, the main reason are the leadership and the way that the firms ability to gain and maintain effective competitive advantages. These will provide a good basis from which to consider the future of the firm.
Effectiveness of Leadership
Southwest Airlines was founded by ollin King and Herb Kelleher, having seen successful interstate airline operating out of California it was believed that Texas could also support an interstate airline (Barratt, 2008).…
References
Barrett, C, (2008), Southwest Airlines' Colleen Barrett on 'Servant Leadership', [online] accessed 27th September 2013 from http://www.youtube.com/watch?v=6TgR95vnM0c
Bryant, E, (2008, Dec), Leadership Southwest Style, T+D, p36-39
Mintzberg Henry, Ahlstrand Bruce, Lampel Joseph B. (2011), Strategy Safari: The Complete Guide Through the Wilds of Strategic Management, Financial Times / Prentice Hall
Southwest Airlines, (2013), homepage, [online] www.Southwest.com
Pan Am Airline
Important Airline in Aviation History: Pan American Airlines
The United States is the nation commonly noted to be the place where powered aviation began. There were many attempts around the world to accomplish actual flight, but until Wilbur and Orville Wright flew their powered glider in 1903 at Kitty Hawk, NC, it had never been successfully done. As with many important accomplishments, it was not long until others had also flown successfully (many with the help of the Wright brothers), and the age of aviation began. The U.S. has been the ground for many of the firsts in aviation and the nation has also fostered some pioneering aviation companies whose fame encompassed the globe. It can probably be safely said that Pan American Airlines was the foremost of these, specifically early in the history of passenger and freight flight. This paper examines how Pan Am started, important…
References
Pan Am Historical Foundation. (2012). About the foundation. Retrieved from http://www.panam.org/pan-am-historical-foundation/foundation-history.html
Pan American Airlines. (2012). About us. Retrieved from http://www.panam.com/news
PBS. (2012). Chasing the sun: Pan Am. Retrieved from http://www.pbs.org/kcet/chasingthesun/companies/panam.html
Classic Airlines Case
Classic Airlines is going through a period that will shape the future of the company. The competitive landscape is evolving and operations and marketing have not kept pace meeting the needs of their target market. As a result some of their key stakeholders and loyal customers have been attracted to the services of competing airlines. This has had significant implications on the bottom line as the organization has been impacted by poor sales and decreased revenues. Additionally, the company has simultaneously had to deal with negative publicity, declining stock prices, as well as increasing prices for fuel which has affected the entire industry.
Classic Airline's executive management team has mandated that a fifteen percent cost reduction is vital to stabilize the position of the company and should be executed within the next eighteen months. To examine the current position of the company a nine step decision making…
Works Cited
Richardson, A. (2011, October 10). Southwest Airlines Is Playing with Brand Fire. Retrieved from Havard Business Review: http://blogs.hbr.org/cs/2011/10/southwest_airlines_is_playing.html
Southwest. (2012). The mission of Southwest Airlines. Retrieved from Southwest: http://www.southwest.com/html/about-southwest/index.html
Stevenson, S. (2012, June 12). The Southwest Secrete. Retrieved from Slate: http://www.slate.com/articles/business/operations/2012/06/southwest_airlines_profitability_how_the_company_uses_operations_theory_to_fuel_its_success_.html
United Airlines
United Continental does not have a mission statement or a vision statement, either on its website or in its annual report (10-K). Cochran, David and Gibson (2008) argue that the mission statement is a critical first step in the strategic management process. It sets the framework for what the firm's strategies are supposed to accomplish, especially in conjunction with the vision statement. hen a company lacks these things, it can lack strategic focus. Elements of the strategy can lack coherence, and be a poor fit with one another. A mission statement is also the most visible and public element of the strategic plan, so without it the company is not communicating its plan to the public. Nor is the mission communicated to employees, when there is not one.
A mission or vision statement can be simple and vague, but provide a sense of direction. It can also be…
Works Cited:
BRS. (2012). Mission statement. Business Resource Software. Retrieved March 16, 2012 from http://www.businessplans.org/mission.html
Cochran, D., David, F. & Gibson, C. (2008). A framework for developing an effective mission statement. Journal of Business Strategies. Vol. 25 (2)
MSN Moneycentral. (2012). United Continental Holdings. Retrieved March 16, 2012 from http://investing.money.msn.com/investments/key-ratios?symbol=UAL
QuickMBA. (2010). Porter's five forces. QuickMBA.com. Retrieved March 16, 2012 from http://www.quickmba.com/strategy/porter.shtml
The oeing 747-300 model was designed to hold 600 passengers. ut the founder of America's Flight Safety foundation, Jerome Lederer, commented that evacuation of such numbers in the event of disaster would be troublesome. Sitting next to an emergency exit did not promise anything, as shown by this tragedy. Only a bare few escaped and only as fate had it. These were the musings of many when dead bodies were brought down by helicopters from Mount Osutaka in bright blankets (Magnuson, Aviation Safety Network, AAIC, C, C (. This disaster and others before and subsequent call for more responsive prevention measures to save lives in this era of massive global air travel.
VII. Recommendations
The Safety Promotion Center was opened in 2006 to train employees and alert them to the importance of airline safety and personal responsibility for safety. The ultimate responsibility falls squarely on the shoulders of Japan Airlines…
BIBLIOGRAPHY
AAIC (2002). JA8254. Aircraft Accident Investigation Report. Aircraft Accident
Investigation Commission. Retrieved on January 30,
2012 from http://www.mlit.go.jp/jtsb/eng-air_report/JA8254.pdf
- (1985). http://www.mlit.go.jp/jtsb/eng-air_report/JA8119.pdf
Danville Airlines
The ethical and legal consequences of testing employees without their knowledge or consent puts Danville Airlines into a defensive position, having to both explain to David eiger why they are not letting him fly, and potentially to his attorneys how the testing took place at all. The issue of genetics testing raises ethical and legal conflicts, creating a paradox for companies who practice this type of screening (Howard, ichardson, Thorpe, 2009). Danville Airlines has been negligent in their process of medical screening, allowing samples taken from eiger to be sent to a genetics screening lab (Darden, 2004). Especially detrimental to eiger is the emotional trauma and pain of being diagnosed with Huntington's disease, the same disease which took his father's life as well (Darden, 2004). Danville is now in the paradoxical situation of having told people outside the company of eiger's condition, also informing eiger he will no…
References
Avitabile, C., Jappelli, T., & Padula, M. (2011). Cognitive abilities, healthcare and screening tests. Journal of Population Ageing, 4(4), 251-269.
Darden Business Publishing. (2004). DANVILLE AIRLINES. University of Virginia. Retrieved on August 24, 2012 from
Howard, DH, Richardson, L.C., & Thorpe, K.E. (2009). Cancer screening and age in the United States and Europe. Health Affairs, 28(6), 1838-47.
Hunter, D. (2005). Diversity and sensitivity issues in management: The case of the genetic screening questionnaire. The Business Review, Cambridge, 4(2), 249-252.
Danville Airlines
Discuss the issue of genetic testing and screening. What are the benefits and the drawbacks of genetic testing? Specifically, what were they for eiger?
The benefits of genetic testing are pretty obvious. Genetic testing allows potential employers and other individuals receive a clear and proper snapshot about the genetic fingerprint of the people they're dealing with. This is particularly important because certain jobs are susceptible to certain forms of intense stress and nearly every profession requires that employees and other individuals be able to engage in specific tasks related to the proper administration of the job. If an individual is genetically susceptible to a certain condition that can jeopardize his ability to do a job correctly or even safely, then a prospective employee has a clear and present right to know that -- some might argue. For example, if a prospective employee were genetically susceptible to gradual blindness,…
References
Mead, J. (2004). Danville Airlines. Retrieved from UofV
The stock's growth is likely to level off and stagnate, remaining at or near its year-to-date average of $33, with industry developments and responses from chief rivals like Delta and Southwest causing a readjustment which removes any post-merger gains. The fact remains that operating a national airline carrier is a game defined by the slimmest of margins, and any unforeseen circumstances involving the cost of fuel, national security or a litany of similar concerns can conspire to sink AAL's stock in a manner similar to the demise of U.S. Airways.
orks Cited
Daily Finance Staff. "After Market: Stocks Get a Little Lift as the New American Airlines Takes
Off." Daily Finance. 09 Dec 2013: n. page. eb. 25 Feb. 2014.
.
Gallo, Carmine. "Southwest Airlines Motivates Its Employees ith A Purpose Bigger Than A
Paycheck." Forbes 21 Jan. 2014: eb.
Isidore, Chris, and Gregory allace. "American Air back on all…
Works Cited
Daily Finance Staff. "After Market: Stocks Get a Little Lift as the New American Airlines Takes
Off." Daily Finance. 09 Dec 2013: n. page. Web. 25 Feb. 2014.
.
Gallo, Carmine. "Southwest Airlines Motivates Its Employees With A Purpose Bigger Than A
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances.
In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have an edge over Southwest Airlines. It tells about the strengths and weaknesses of other competitors in contrast with Southwest Airlines.
Factors Weight Southwest Airlines United Airlines Delta Airlines Ratings Score
Ratings
Score 1. Low fares.15 4.60 3.50 4.60 2. Customer Service.15 2.30 4.60 3.50 3. Employee Relations.15 4.60 3.50 3.50 4. Rate of Expansion.10 2.20. 4.50 4.50 5. Marketing.15 4.60 4.50 4.50 6. Finance Structure.15 4.40 4.40 4.40 7. Management Policies.15 4.60 4.60 2.20
EXTERNAL FACTOR EVALUATION MATRIX
The external…
Bibliography
Gittell, Jody Hoffer. The Southwest Airlines Way Using the Power of Relationships to Achieve High Performance. New York: McGraw-Hill, 2003.
More City Pairs Await Southwest - Kelleher Says Opportunities Remain Using Airline's Formula." Aviation Week & Space Technology. 143. 6 (1995): 40.
A www.marketingmix.com.au / www.mcdonalds.com / www.bbc.co.uk
(Southwest Airlines Corporation)
The employees are always put first at Southwest Airlines, and according to the CEO Herb Kelleher, who was responsible for founding the company Southwest Airlines, the philosophy that employees come first is deeply embedded in the psyche of the company, and if the employees of the company are happy and contented and fully satisfied with their work, then they will most definitely take better care of the customers of the company, and this is exactly what happens at Southwest Airlines. When the customers are happy at the treatment that they receive at Southwest Airlines, they, quite naturally keep coming back for more, and this in turn makes the shareholders extremely happy and satisfied. The employees at Southwest Airlines are some of the best and most highly paid employees of any airline, and in general, all the walls of the company are always filled with several pictures of…
References
Abenes, Fiorello B. "Marketing Study of Southwest Airlines" Retrieved at http://www.csupomona.edu/~lbabenes/MBA/SouthwestMarketingStrategies.doc. Accessed 30 August, 2005
Aviation Accident Brief" (2002) Retrieved at http://www.ntsb.gov/publictn/2002/AAB0204.htm . Accessed 30 August, 2005
100 Best Corporate Citizens for the year 2005" (Spring 2005) Business Ethics Magazine.
Retrieved at http://www.business-ethics.com/whats_new/100best.html . Accessed 29 August, 2005
Emirate Airline Analysis
What follows in this report is a review and summary of the customer services aspect of Emirates Airline. The firm in question has most certainly established a name for themselves and there is the common refrain about how adept they are. Even so, there are opportunities for them to get better and all firms should commit to a culture and mindset of continuous improvement, fettering out what problems what do exist and finding common sense solutions for dealing with the same. Regardless of what problems are found, there need to be evidence-based and realistic solutions put forth, and that shall be the goal of this report. While Emirates Airlines does a lot of things well when it comes to their customer services, they could do even better and strive to do so whenever possible.
Company Summary
Before getting into the minutia of what should change and why,…
Classic Airlines Marketing Solution:
In addition to being the fifth largest airline company across the globe, Classic Airlines has a fleet of over three hundred and fifty jets that operate in approximately 240 cities with over two thousand daily scheduled flights. Since its inception about twenty-five years ago, the airline company has grown into an organization that consists of 32,000 workers. In the year 2006, the company not only made sales worth $8.7 billion but also gained a profit $10 million as a result of the bumper sales. egardless of these sales, Classic Airlines is not an exception to the challenges that existing airlines have encountered since 2007. Actually, despite making these abundant sales in 2006, the airline experienced a 10% decrease in its share prices because of the growing uncertainty about flying. This growing uncertainty did not only affect Classic Airlines but also affected the general stock prices of…
References:
Chase, J. (2009, October 13). Developing Problem Solutions for Organizations. Retrieved November 10, 2010, from http://www.associatedcontent.com/article/2213827/developing_problem_solutions_for_organizations.html?cat=35
Le, T. (2007, January 30). Problem Solution: Classic Airlines. Retrieved November 10, 2010,
from http://letanthanh.com/link_MBA/link_570/wk%206_ProblemSolutionClassicAirlines.htm
"Problem Solution Paper for Classic Airlines (2)." (n.d.). DocShare.com. Retrieved November
A lower price enables an airline to remain well above the competition.
Economies of scale and scope are vital to the performance of an organization no matter the industry the organization is involved in. An organization can only remain competitive if driven to achieve economies of scale (Bronson & Morgan, 1998). Tactics an organization may adopt to achieve economies of scale and scope will include optimal market coverage, increasing sizes, superior "internal growth" and raised capital (Bronson & Morgan, 1998). Another important consideration for organizations include efficiency. One might define efficiency as "the ratio of inputs to outputs" (Bronson & Morgan, 1998).
Efficiency of an organization may be measured in various ways including by observation through accounting (Bronson & Morgan, 1998). An organization particularly a franchised business location will continually measure efficiency to ensure they are minimizing costs and saving time to help facilitate economies of scale and scope.
Tactics…
References
Acumen Professional Intelligence Ltd. (2005). "Business Environment - British Airways." Acumen Enterprise, 31, October 2005:
http://www.acumenenterprise.com/Business/Business_Environment_British_Airways_L18237/
British Airways, (2005). "Global Warming and Aviation." 31, Oct 2005:
http://www.britishairways.com/travel/crglobalwarm/public/en_gb
Services Marketing Strategy eport
The airline business is among the most competitive sectors in the economy. The business requires the investors to invest huge amounts of capital to sustain the operations of the business. The difference in the capital available has resulted into emergence of superior airline companies that have dominated the global market. The airline companies are mainly a service delivery oriented offering transport for passengers and language.
The airline company under evaluation is Singapore Airlines. The company was incorporated in 1947 originally as Malayan Airways Limited. With the help from British Commonwealth airlines, the company increased its fleet size to become among the major players in the airline industry. The company has a strong presence in Asia, which is the major market. The company operates trans-Pacific flights, which increase revenue. The company also diversifies its operations to provide services like as aircraft managing and engineering services (Lee &…
References
Beiske, B. (2007). Loyalty management in the airline industry. Mu-nchen: GRIN Verlag GmbH.
Capon, N., & Hulbert, J.M. (2007). Managing marketing in the 21st century: Developing and implementing the market strategy. Bronxville, N.Y: Wessex Inc.
Chary, S.N. (2009). Production and operations management. New Delhi: Tata McGraw-Hill.
De, L.C. (2003). The Rough guide to Malaysia, Singapore and Brunei. New York: Rough Guides.
Northwest Airlines
Many airlines have faced difficult times after deregulation, and the problems were exacerbated by the downturn in air travel after 9-11. Smaller airlines like Northwest Airlines have had even more problems, and yet Northwest in particular persists and so far has voided going out of business in spite of a series of threats, including poor traveler performance, lowered expectations in business terms, labor problems, and so on.
Before deregulation in the 1970s, many had speculated as to how it would affect the structure of the airline industry, and the prevailing view was that deregulation would lead to a substantial consolidation of the industry, leaving some four to six large systems, each centered around one of the major prederegulation trunks. It was believed, for example, that American Airlines, Delta Airlines, Northwest Airlines, United Airlines, and TWA would be among the survivors because of financial strength or protected international franchises.…
References
Castro, Janice, 'Get 'Em While They Last," Time (July 22, 1991), p. 49.
Form 8-K for Northwest Airlines Corp. (2006). Yahoo Finance. Retrieved December 10, 2006 at http://biz.yahoo.com/e/061130/nwacq.pk8-k.html .
Meyer, John R., Clinton V. Oster, Jr., Ivor P. Morgan, Benjamin A. Berman, Diana L. Strassman. Airline Deregulation: The Early Experience. Boston, Mass.: Auburn House, 1981.
Morrison, S. & Winston, C. (1986). The Economic Effects of Airline Deregulation. Washington, D.C.: The Brookings Institution.
Similarly, this could influence the international airline community. Then, a stable economy is highly dependent upon a stable oil price, which once again is not the case. "The environment will continue to become more competitive as the LCC's continue to become more convenient. Business fares will continue to drop. Leisure fares won't raise much until capacity is generally in line with demand, which won't occur until much of the capacity overhand has been employed either by surviving legacy carriers or LCC."
To the customer, the continuing of this trend will generate no benefits. "In other words, we're stuck with the current system, because it isn't really in any airline's interest to try to change it. As long as no airline makes a dedicated effort to distinguish itself from the pack, all the airlines can stay lean, even at the expense of quality."
eferences
Surowiecki, J., the Unfriendly Skies, the New…
References
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
Jankins, D., Overview of the Domestic Airline Industry, the George Washington University Aviation Institute, www.speea.org/news/files/layoffs/pcfinancials.pptRetrieved on February 13, 2008
Airlines face fiscal problems due to war, the Daily Michigan, September 1, 2003
Quick MBA, Porter's Five Forces - a Model for Industry Analysis, 1999-2007, http://www.quickmba.com/strategy/porter.shtml . Retrieved on February 13, 2008