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Infrastructure assets, although very beneficial to society are often marred with high profiled accidents and deaths. Industry segments such as trucking, rail transportation, and ocean shipping have all experienced very high profile and deadly accidents. Although the statistics indicate the many of these activities are safe, occasionally accidents occur that can adverse consequents for not only the company, but the industry overall. The airline industry is not except for this criticism either. The airline industry is particularly fraught with oversight primarily due its importance global economy. The airline not only transports goods around the world but also individuals. These individuals are often helpless in the event of a malfunction or a serios lapse in protocols. As the September 11th, terrorist attacks illustrated, airlines can also be the target of extremist’s groups looking to harm the United States. From a national security perspective, airline also ship mission critical information, goods…
1. Cederholm, T., 2014. Competition In Airline Industry. [online] Marketrealist.com. Available at: (Accessed 8-December-2020).
2. International Air Transport Association (IATA). 2015. FX Impacts On Airlines. [online] Available at: (Accessed 8-December-2020).
3. Pearce, B., 2013. IATA Airlines Worldwide : The Value They Create And The Challenges They Face. [online] iata.org. Available at: (Accessed 8-December-2020).
4. Szyliowicz, J. S. (2004). Aviation Security: Promise or Reality? Studies in Conflict & Terrorism, 27(1), 47-63
5. Tamasi, G., & Demichela, M. (2011). Risk assessment techniques for civil aviation security. Reliability Engineering and System Safety, 96(8), 892-899.
Emirate egulating Authority in home nation
Governmental agency empowered to regulate the economic aspects of airline
Extent to which the Emirate airline's fleet consists of owned vs. leased aircraft.
Union epresentation of airline's pilots and maintenance personnel
F. UAE Labor Law that takes care of Unionism
Emirate Airline is governed by and administrated according to the rules and regulations and the administration of the General Civil Aviation Authority (GCAA) in the UAE and was established by a decree of the Federal Cabinet of the country.
The strategic role of the GCAA includes creating and sustaining a culture that promotes compliance with safety and security requirements, improvement in the safety, efficiency and the service standards of ANS and the engagement with other regional and international organizations.
The major duties of the GCAA include the formation of a general policy for the civil aviation sector and the proposal of relevant…
Emiratesgroupcareers.com,. (2016). Employee Benefits -- Global Opportunities -- Explore our Careers -- Emirates Group Careers Centre. Retrieved 24 February 2016, from http://www.emiratesgroupcareers.com/english/careers_overview/opportunities/emp_benefits.aspx
Gallant, M., & Pounder, J. (2008). The employment of female nationals in the United Arab Emirates (UAE). Education, Business & Society, 1(1), 26-33. http://dx.doi.org/10.1108/17537980810861493
Gcaa.gov.ae,. (2016). Aviation Safety Affairs Sector. Retrieved 24 February 2016, from https://www.gcaa.gov.ae/en/Departments/AS/Pages/default.aspx
Gcaa.gov.ae,. (2016). GCAA Strategic Objectives. Retrieved 24 February 2016, from https://www.gcaa.gov.ae/en/AboutGCAA/Pages/StrategicObjectives.aspx
In the contemporary world, the aviation industry has experienced a great deal of changes and transformations in the legal, ethical and business realm. One of the prevailing contentious issues is the impact of the Brexit in the industry. A declaration has been made that from the start of 2019, the UK will be considered a third country and for that reason EU aviation rules and regulations will stop being applicable in the United Kingdom. This means UK airline carriers will not be given access to air transport agreements between the EU and third countries. Similarly, airline carriers EU will stop having any airline traffic rights to, from and past the UK. It is palpable that there will be considerable trade-off between national autonomy and the accessibility to the single aviation market of the European Union. However, the magnitude of this aspect remains to be seen in the future.
Centre for Aviation. (2016). Brexit and aviation Part 1: Open Pandora\\'s box and anything can happen. But status quo is likely. Retrieved from: https://centreforaviation.com/insights/analysis/brexit-and-aviation-part-1-open-pandoras-box-and-anything-can-happen-but-status-quo-is-likely-288477
Centre for Aviation. (2016). Brexit up in the air: implications for aviation as the UK votes to leave the European Union. Retrieved from: https://centreforaviation.com/insights/analysis/brexit-up-in-the-air-implications-for-aviation-if-the-uk-votes-to-leave-the-european-union-262860
Deloitte. (2017). The UK aviation and travel sector: Why does Brexit Matter? Retrieved from: www2.deloitte.com
Dentons. (2017). Brexit and the aviation industry Up in the air?
Emerson, R. W. (2015). Business law (6th ed.). Hauppage, NY: Barron’s Educational Series.
Federal Regulations, Ethics, and the legal System.
Ford, J. (2017). UK must accept its post-Brexit status as a third country. Financial Times. Retrieved from: https://www.ft.com/content/3f88d134-6a20-11e7-bfeb-33fe0c5b7eaa
Gerrard, G. (2017). What will Brexit mean for the UK airline industry? The Telegraph. Retrieved from: http://www.telegraph.co.uk/business/2017/03/22/will-brexit-mean-uk-airline-industry/
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:
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…
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
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…
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.
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.
Acumen Professional Intelligence Ltd. (2005). "Business Environment - British Airways." Acumen Enterprise, 31, October 2005:
British Airways, (2005). "Global Warming and Aviation." 31, Oct 2005:
It is important that human resources within the airline devise strategies to minimize the possible negative effects that union relations may have on the workforce.
There are several issues that have impacted the airline industry as a whole, and present implications for the human resources challenges discussed thus far. The first of these issues is a drastically changing workforce demographic within the airline industry. In particular the workforce is aging. Establishments in the air transportation industry have a significantly higher proportion of employees in the 45 to 54 and 55 to 64-year-old age ranges than other industries (Wallace & Gonzalez, 2005). Specifically, employees in the 45 to 54-year-old age group comprise approximately 35% of the whole workforce (Wallace & Gonzalez, 2005). On the contrary, workers in the 14 to 24-year-old category comprise only 4% of the workforce (Wallace & Gonzalez, 2005).
This issue presents human resources challenges with regards to…
Appelbaum, S.H., Fewster, B.M. (2004). Human resource management strategy in the global airline industry -- a focus on organizational development. Business Briefing: Aviation Strategies, 70-5.
CNN (2004). Outsourcing has yet to really penetrate the travel industry. Local Needs and travel infrastructure tends to require local people on the ground. CNN.com Retrieved 6/13/07 from http://edition.cnn.com/2004/TRAVEL/12/23/bt.outsource.airlines/index.html .
Grassi, D.M. (2005). Outsourcing airline safety may prove costly. MichNews.com.
Pratt, M.K. (2002). Contingent employees raise host of benefit questions. Boston Business Journal. Retrieved 6/13/07 from http://boston.bizjournals.com/boston/stories/2002/04/08 .
The demand for their services underwent a period of diminishment, because of the strong emotional impact that the events had upon the population living all over the world and especially in the United States of America. Despite various negative forecasts, the airline industry got back on track soon afterwards. Not only did the demand not fall, but it underwent significant increases.
Another element which could affect the functioning of the airline industry in a negative manner is represented by the concerns for the environment. Leaving aside the issue represented by the phonic pollution, aspects such as global warning may become an important concern for the airline industry should the issue gain a high importance on the public and political agendas. So far, however, the issue did not manage to influence people's choices regarding travelling by airplane, regardless of the attempts made in this directions by various politicians. (Pickard, 2006)
Gopwani, J. (2007, April 26). NWA, flight attendants reach deal. Retrieved May 17, 2007, from Freep.com Detroit Free Press Web site: http://www.freep.com/apps/pbcs.dll/article?AID=/20070426/Business05/70426029/0/ENT03
Mankiw, N.G. (2004). Principles of economics (3rd ed.). Chicago, IL: Thomson South-Western.
McCabe, R.M., PhD. (n.d.). Airline Industry Key Success Factors. The ability for airlines to succeed today is measured according to several key success factors. Retrieved May 5, 2007, from Pepperdine University Web site: http://gbr.pepperdine.edu/064/airlines.html
Muskin, J.B., & Sorrentino, J.A. (February 1977). Externalities in a Regulated Industry: The Aircraft Noise Problem. The American Economic Review, 67 (1), 347-350. Retrieved May 5, 2007, from JSTOR Web site: ( http://links.jstor.org/sici?sici=0002-8282 (197702)67%3A1%3C347%3AEIARIT%3E2.0.CO%3B2-4
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."
Surowiecki, J., the Unfriendly Skies, the New…
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
The airline industry is a service industry, but one where several firms have been able to innovate their service offering. Such innovations have been to create viable low-cost carriers (RyanAir, EasyJet, Air Asia) while other innovations have led to the creation of high-service airlines (Emirates, Qatar, Singapore). In either case the process of innovation has been roughly the same for all of these companies. The first component of the map is searching. All of these companies searched for niches that were either not being served at all (such as price-focused customers in Europe and Asia) or were not being served effectively (passengers traveling on routes between Europe and Asia).
Of the six airlines mentioned above, only Singapore is a legacy carrier. The others have entered their markets in the few couple of decades, and brought with them a number of critical service innovations. After identifying a core market whose…
Phong, G. (2011). Building on strong. IATA -- Airlines International. Retrieved November 5, 2012 from http://www.iata.org/pressroom/airlines-international/april-2011/pages/ceo-singapore.aspx
Tidd, J. And Bessant, J. (2009). Managing Innovation: Integrating Technological, Market and Organizational Change 4th Ed. Hoboken, NJ: Wiley & Sons.
U.S. Airline Industry
Structure of the Industry
Deregulation Act of 1978
US Airline Industry During the 1980s
US Airline Industry During the 1990s
The Next Decade for the U.S. Airline Industry
Issue of Fuel
Future for the Global Airline Industry
Airline Industry worldwide in general and United States in particular has played a central role in stirring the growth of the world economy. With USA appearing on the world map as one of the most developed nations in the world, it's Airline Industry and its growth and now its current travails provide us with interesting insights and a case study as to how an industry can grow tremendously supported by government actions as well as market forces and then major external factors mainly political and economic can affect the progress of overall industry.
The research is conducted mainly from the websites.
Hunter, M. (2004). Bumpy ride expected for airline industry in 2005. Retrieved on Sep 28, 20045 from:
Mecia, T. (2005) Inside the Issue: The Future of U.S. Airways. Retrieved on Sep 28, 2005 from:
g. Lufthansa); partners with Blackberry and Yahoo for in flight conveniences.
Early aggressive additions to fleet and service did, as analysts predicted, negatively impact the company.
Company will need to carefully evaluate routes, new service, new equipment, and new technology in order to maintain growth potential.
Fairly stable and industry respected; replaced CEO in May 2007.
Needed a new managerial focus after 2004.
Optimistic, keep tight rein on overly aggressive expansion.
Jet Blue University, compensates better than most airlines, rewards loyalty for service
Unsuccessful attempt at unionizing
Ensure mission is translated to consumers; empower local employees to make better decisions so clients are not left sitting on tarmac.
Huge and rapid growth spurt in early 21st century
Became a model for other carriers; major carriers copied model and took away share
Continued energy and fiscal focus on consumers and next generation of airline ideas.
Air Transportation Safety and System Stabilization Act, Public Law 107-42. (2001, September 22). Retrieved October 2010, from Office of Transportation - U.S. Government: http://ostpxweb.ost.dot.gov/aviation/Data/stabilizationact.pdf
Jet Blue Press Release - Names Dave Barger President and CEO. (2007, May 10). Retrieved October 2010, from JetBlue.com: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=998672&highlight=))
Air Travel Report: Dip in Delays, Spike in Complaints. (2010, October 12). Retrieved October 2010, from CNN Travel: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report
Jet Blue Shareholder Information. (2010, October 12). Retrieved October 2010, from Jet Blue: http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-irhome
S. Air hub in Phoenix is nearby the Delta hub in Salt Lake City. Typically, airlines seeking out acquisition targets seek to fill voids in hub locations rather than select airlines with lots of hubs close to their own. For example, critics of the .S. Air offer state that nited would have been a far better suitor for Delta because of the synergies between nited's tran-Pacific routes and international networking and Delta's Atlantic and Latin American routes. And, critics believe that .S. Airlines should have targeted bankrupt Northwest as an acquisition target rather than Delta. Most experts expect nited to make a counter bid for Delta
The need for mergers in the airlines industry is compelling and combing airlines can have many synergies. But, has .S. Airways selected the right company to merge with? The answer appears to be no. Being number one does not necessary guarantee being profitable. There…
US Airways Bids $8 Billion for Delta." The New York Times 15 Nov. 2006. Retrieved from Web site: http://www.nytimes.com/2006/11/15/business/15cnd-delta.html?ei=5088&en=a63b326c5606fc28&ex=1321246800&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1164136047-uG899hrCso+gtPp1Ap10pw
Isidore, Chris. "U.S. Air Makes $8 Billion Bid for Delta." CNNMoney.com 15 Nov. 2006. Retrieved from Web site: http://money.cnn.com/2006/11/15/news/companies/us_airways_delta/index.htm?eref=rss_topstories
US Airways Makes Hostile Offer for Delta." ABC News 15 Nov. 2006. Retrieved from Web site: http://www.abcnews.go.com/Business/wireStory?id=2654543&page=4
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.
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…
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
Southwest Airlines with Porters Five Forces Analysis
Southwest Airlines is a major competitor in the U.S. air industry. The founders; ollin King and Herb Kelleher, developed the idea of a low cost carrier and the airline airlines gained the first mover advantage when the inaugural flight took place in 1971. The airline has been very successful and following the acquisition of AirTran in 2011, the company is now the largest domestic carrier and the world's largest low cost carrier (Southwest Airlines, 2014). The firm has 45,000 employees and flies to 96 different destinations with its fleet of 680 Boeing aircraft (Southwest Airlines, 2014). Competing in the airline industry the company has a number of challenges which can be examined through Porters Five Forces Model.
Threat of New Entrants
The airline industry has a number of barriers to entry and exit which may constrain the potential for new competition.…
Belobaba, P; Odoni, A; Bamhart, C, (2009), The Global Airline Industry, John Wiley & Sons
Southwest Airlines, (2014), Southwest Corporate Fact Sheet, accessed at http://swamedia.com/channels/Corporate-Fact-Sheet/pages/corporate-fact-sheet
The Economist, (2014), Why airlines make such meagre profits, accessed at http://www.economist.com/blogs/economist-explains/2014/02/economist-explains-5
Transtats, (2014), accessed at http://www.transtats.bts.gov/
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…
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.
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.…
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,
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.…
Zucchi, K. (2015). How to Value Airline Stocks. Investopedia.
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.
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…
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
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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).
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
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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.…
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
Furthermore, existing vulnerabilities of the airline industry are not taken into consideration until a disaster occurs. Lastly, the September 11th Security Fee introduced by the Department of Homeland Security was considered by many "as a beneficial trade off for their personal safety eventually," having as a direct consequence a rise of the airline industry.
Gregory Mankiw (2004) Principles of Economics, 3e, Mankiw
InnovativeThinker. (2007) Economic Profile of the Airline Industry. Retrieved Feb 1, 2008, from Associated Content, Inc. Web site: http://www.associatedcontent.com/article/435732/economic_profile_of_the_airline_industry.htm
Wei, S. (2006). Analysis of aggregate Passenger Routes in Air Travel: An Atlanta-ased Study. Southeastern Geographer, Volume 46, Issue 1, page 139. Retrieved Feb 1, 2008, from web site: http://proquest.umi.com.ezproxy.apollolibrary.com
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Virgin Territory (2006, September 30).…
Gregory Mankiw (2004) Principles of Economics, 3e, Mankiw
InnovativeThinker. (2007) Economic Profile of the Airline Industry. Retrieved Feb 1, 2008, from Associated Content, Inc. Web site: http://www.associatedcontent.com/article/435732/economic_profile_of_the_airline_industry.htm
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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…
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.
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…
Legacy Carrier Response:
Customer loyalty from years of traveling continues 10% of total traffic; not enough to propel the company into profitability.
Regional route strategies focused more on price protection vs. price competition relative to competitors.
Threat of New Entry - This is the factor in the five forces analysis that illustrates the threat of new competitors entering the markets served by both discount and legacy carriers. Examples of this would be the low-cost jet taxi services based on Eclipse Aviation's smaller and more fuel-efficient jet.
Discount Carrier Response:
Competitiveness in routes on price and availability of flights challenges the entrance of low-price competitors.
Low-cost, highly verticalized air carriers tend to focus and excel on one specific geography, as Southwest does in the U.S. And Ryan Air, Berlin Air, and others do in Europe, and JetStar in Australia.
Legacy Carrier Response:
Battling new entrants by using aggressive pricing strategies only…
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
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
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
Classic Airlines Case
In the early 20th century two young men by the names of Orville and Wilbur Wright made what some argue as the greatest transportation invention ever discovered outside of the automobile. This 50 pound glider with a wingspan of approximately 17 feet would revolutionize the manner in which humans across the world would travel. In fact, this 12 second flight was so instrumental, that the Wright brothers will be forever remembered for their contributions to both aviation and society (Wright Brothers - First Flight of an Airplane, 2011). Now, fast forward 100 years into the future and a very different era has risen in the aviation industry. This era has been marred by excessive bankruptcies, mass consolidation, and national security concerns. ecently the issue of airport security has risen to the forefront. During the aftermath of the September 11th attacks and constant concern regarding Middle Eastern regimes…
1) Wright Brothers - First Flight of an Airplane." Inventors. Web. 30 Nov. 2011. .
2) Airline Industry Profile from First Research." Industry Statistics, Trends and Analysis from First Research, a D&B Company. Web. 30 Nov. 2011. .http://www.usnews.com/usnews/biztech/articles/030915/15airlines.htm
3) September 11 and the Restructuring of the Airline Industry | Dollars & Sense." Dollars and Sense: Real World Economics. Web. 30 Nov. 2011. .
4) Traffic and Capacity Analysis." Home. Web. 30 Nov. 2011. .
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…
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
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…
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
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
Southwest Airlines Analysis Using the Maslow Hierarchy of Needs
Are Southwest Airlines Inc. leadership and policies fulfilling Maslow's needs ' theory stages? Please apply Maslow's hierarchy of needs to work motivation at Southwest Airlines, showing how various levels are or are not being met by Southwest Airlines Leadership and Human esources Management. (for example, are there employees at Southwest Airlines ever fired? How does that relate with lower level needs, such as safety needs?)
The leadership strategies and initiatives at Southwest Airlines are deliberately designed to support each level of the Maslow Hierarchy of Needs. Beginning with the initial physiological needs, Southwest is known for being an airline that pays better than comparable national carriers, while also having excellent medical benefits compared to its competitors (DAurizio, 2008). This ensure the physiological needs of the employees are met. As Southwest is an airline, the safety concerns are a critical success factor…
DAurizio, P. (2008). Southwest Airlines: Lessons in loyalty. Nursing Economics, 26(6), 389-92.
Laszlo, G.P. (1999). Southwest airlines - living total quality in a service organization. Managing Service Quality, 9(2), 90-95.
Lee, W.G. (1995). Southwest airlines Herb Kelleher: Unorthodoxy at work. Management Review, 84(1), 9-9. 14944
Miles, S.J., & W, G.M. (2005). Positioning southwest airlines through employee branding. Business Horizons, 48(6), 535-545.
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…
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…
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.
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).…
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…
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
An Examination of Southwest Airlines
Globalization and Technology
Application of the I/O Model
Application of the BV Model
Mission and Vision Statement
Southwest Airlines has been one of the aviation industry's success stories; founded in 1967 the airline pioneered the low cost carrier model, and grew organically leveraging a first mover advantage (Morrison, 2001). The airline now operates approximately 3,600 flights every day, employees 45,009 staff and with the acquisition of AirTran in 2011 it became the largest domestic U.S. carrier (Southwest Airlines, 2014). The airline has grown, but in recent years the airline industry has seen significant constraints on growth due to the maturity of the industry in the U.S. along with the economic influences constraining growth (IATA, 2014). However, this does not mean there is not room for growth; to assess ways in which the firm may improve and understand the position of…
Belobaba, Peter; Odoni, Amedeo; Barnhart, Cynthia, (2009), The Global Airline Industry, John Wiley & Sons
Buchanan, D; Huczynski, A, (2010) Organisational Behaviour, Harlow, FT/Prentice Hall
Carey, (2014, Oct 14), Steep Learning Curve for Southwest Airlines as It Flies Overseas, Wall Street Journal, accessed at http://online.wsj.com/articles/steep-learning-curve-for-southwest-airlines-as-it-flies-overseas-1413326936
Cook Sarah, (2008), The Essential Guide to Employee Engagement: Better Business Performance Through Staff Satisfaction, Kogan Page Publishers
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.
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…
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
Not only are they crucial for the movement of people, but they are crucial for the rapid movement of time-sensitive goods. Therefore the government has an interest in the survival of the industry. Government can and has involved itself through monetary policy in sustaining or resuscitating struggling airlines in order to maintain the overall strength of the industry.
Taxation is another area where governments affect the industry. This again relates to the tight margins, as taxation represents a key expense for airlines. Changes in the tax regime directly affect airlines' after tax profits. The government can encourage or discourage the industry based on its taxation policies. The IATA believes the airline industry to be more heavily taxed than some of its substitutes, and has an entire program to deal with the issue of taxation, highlighting taxation's relevance to the industry.
Another way in which fiscal policy can impact the industry…
Pearce, Brian. (2008). Financial Forecast. IATA. Retrieved June 29, 2008 at http://www.iata.org/NR/rdonlyres/DA8ACB38-676F-4DB1-A2AC-F5BCEF74CB2C/0/Industry_Outlook_Briefing_March08.pdf
No author. (2008). The Industry Handbook: The Airline Industry. Investopedia. Retrieved June 29, 2008 at
External Analysis of Southwest Airlines
External Analysis Southwest Airlines
Will Southwest Airline's strategic plan continue to bring success in the new airline industry landscape? This paper sought to answer this question by examining the external increasingly consolidated environment in which Southwest competes. The review was conducted through application of Porter's Five Forces, a PEAT analysis, and a SWOT analysis.
The report concludes that Southwest has gained ground and maintained stability, changing only as much as it needed in order to remain the friendly domestic budget airline it started out as, and to compete effectively but with fidelity to its vision and values.
This paper will present a brief analysis of the competitive landscape for Southwest Airlines based in order to assess the airline's future capabilities in an environment in which other airlines are increasingly co-opting Southwest's successful and innovative strategies. This deductive exploration of the landscape will continue at the…
Airlines Industry Profile, First Research. (2011). [Web]. http://www.firstresearch.com/industry-research/Airlines.html
Domestic Airlines, U.S. Industry Report, IBIS World. (2011). [Web]. Retrieved http://www.ibisworld.com/industry/default.aspx?indid=1125
Huettel, S. (2011). Tampa International Airport votes to give airlines incentives for adding flights, St. Petersburg Times. Retrieved http://www.tampabay.com/news / business/airlines/article1176335.ece
Porter's Five Forces, Strategic Management, Quick MBA. (2011). [Web]. Retrieved http://www.quickmba.com/strategy/porter.shtml
External Analysis Southwest Airlines
One of United States' most successful airlines in the business is Southwest airlines. The company has been one of the most successful businesses in the economy with no case of worker layoff or strike being recorded in the organization. The company has dedicated its commitment to ensuring it provides a favorable environment for its workers. The company's corporate culture has played a significant role in the success of the company as it recognizes the workers emotions. Positive attitude is influential in the workplace as the workers become more productive. The air transport business is in an industry where profit maximization is a challenge to many players. The struggling economy and the increased number of players in the company make the industry unfavorable for business. The industry is also affected by the increased price of fuel which increases the cost of transportation. The paper conducts environmental analysis…
PEST analysis.(2009). Retrieved on August 15, 2011 from: http://www.valuebasedmanagement.net/methods_PEST_analysis.html
Porter's Five Forces: A model for industry analysis. (2007). Retrieved on August 15, 2011 from: http://www.quickmba.com/strategy/porter.shtml
SWOT analysis: Lesson. (2009). Retrieved on August 15, 2011 from: http://marketingteacher.com/lesson-store/lesson-SWOT.html
Zahorsky, D. (2009). A business owner's secret weapon: SWOT analysis. Retrieved on August 15, 2011 from: http://sbinformation.about.com /cs/bestpractices/a/SWOT.htm
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.
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…
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,
"Problem Solution Paper for Classic Airlines (2)." (n.d.). DocShare.com. Retrieved November
When we are discussing the airline industry and the companies involved here, we need to differentiate between two periods: before the attacks of 11th of September 2001 and after the attacks, because the changes in the economic, social and political environment were so tremendous that they have changed everything radically, both in perceptions and in actions.
efore September 2001, Continental had had a troubled period during the 80s and at the beginning of the 90s, characterized by heavy losses, periods of economic default and bankruptcy. The coming of Gordon ethune, president and COO, later elected CEO, changes began to take place within the company. These changes generally acted on four different plans: financial, marketing, product and people/employees. The success was almost immediate, with increasing value added for the customer, a better atmosphere in the work place and a different attitude from the employees, stimulated by subsequent bonuses and prizes.…
2. Porter's Five Forces. A model for Industry Analysis. Strategic Management. On the Internet at http://www.quickmba.com/strategy/porter.shtml
3. Grant, Robert M. Case 3. THE U.S. AIRLINE INDUSTRY IN 2004. 2002. On the Internet at http://www.blackwellpublishing.com/newgrant/docs/03USAirline2004.pdf
Continental recovered from each event in good time and generated overall benefits worth tens of millions of dollars. ("Continental Airlines wins INFOMS best practices award," 2002, website)
The company has managed against great odds to continue to serve customers, some would say even more effectively than previous to the 2001 disaster, even recently expanding services. (FACTS: A Quarterly Digest of Interesting Information from Continental Airlines 4th Quarter 2004) Though, in the past the Continental has made significant contributions to charities and needy organizations, at this time of economic hardship within the aviation industry in general the company has suspended accepting applications for sponsorships they hope to resume in the near future. ("Continental Airlines: Community Service" website) the historical commitment to community service and customer relationships shows the marketing tactics of Continental Airlines to be some of the best in the world, and current conservation shows the companies ability to weather…
Continental Airlines wins INFORMS best practices award," 2002, website) http://www.eurekalert.org/pub_releases/2002-05/ifor-caw052302.php
Continental Airlines: Community Service" http://www.continental.com/company/profile/community.asp?SID=CCDB
Continental Airlines / Travel Center / Make Reservations" http://www.continental.com/resmgt/pmakereservations.asp?SID=CCDB1CF7D48546C68E6E7C6F95C28895
(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…
Abenes, Fiorello B. "Marketing Study of Southwest Airlines" Retrieved at http://www.csupomona.edu/~lbabenes/MBA/SouthwestMarketingStrategies.doc. Accessed 30 August, 2005
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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
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.…
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 .
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" (1999) eported as being potential dimensions for disaggregation are those of "market, season, month, week, section of week, segment, and itinerary." (McGill and yzin, 1999)
American Airlines experienced dramatic growth when other airlines were going bankrupt through increasing its capacity. American Airlines is reported as a prime example of an airline that grew successfully during the years that TWA and other failed. United Airlines held a strong financial position as well that assisted the airlines in weathering the reduction of flights and a steep decline in travel while other airlines failed miserably winding up in bankruptcy. American Airlines managed to bring about a reduction in costs while other airlines including TWA simply could not find a way to reduce costs, which was further stressed by the airlines lack of a solid financial base. In the airlines industry, just as in other industries the ability to profit on a higher…
Dempsey, Paul Stephen (2008) the Financial Performance of the Airline Industry Post-Regulation. Symposium 2008. No. 2 Vol. 45. Retrieved from: http://www.mcgill.ca/iasl/sites/mcgill.ca.iasl/files/ASPL614_Industry_PostDeregulation-Houston.pdf
McGill, JI and Van Ryzin, GJ (1999) Transportation Science. Vol. 23, No.2. Retrieved from: http://ben-israel.rutgers.edu/711/McGill-VanRyzin.pdf
Tolkin, J. (2010) Airline Bankruptcy: The Determining Factors Leading to an Airline's Decline Claremont Colleges Scholarship @ Claremont. Fall 2010. Retrieved from: http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1088&context=cmc_theses
blogspot.com/2009/03/air-asia-flight-cancellations.html> [28 July 2010].
This source discusses a common situation that is occurring with some Air Asian flights, cancelations. This is problematic, because many are occurring because the planes are not full; leaving their passengers stranded at airports or forced to find other accommodations. This is significant, because this information can be used to show how some Thai's, were flying Air Asia based upon their low cost fares. However, once their flight has been continuously cancelled, is when many are becoming unhappy with the low cost service. This is important, because this information can be used to show another factor; that could be affecting someone's decision to fly on an LCC or FSC. Where, the lower fares and fewer frills are an advantage that they have over FSC's. Yet, when you factor in issues such as unexpected cancelations; these lack of services and sudden changes could be a turn off…
Air Asia, (2009) Academic [online] available from: . [ 28 July 2010].
Air Asia Company Strategic Management (2009) Air Asia [online] available from . [28 July 2010].
Air Asia Flight Cancelations (2009) Air Asia Reviews [online] available from: [28 July 2010].
Airline Review (2009) Knowledge Oman [online] available from [28 July 2010].
The company should focus on expanding its service trans-North America, and should further look into the possibility of launching trans-Atlantic operations. The company at the same should start dealing with Boeing for the purchases of advanced aircrafts.
The company should emphasis more on providing insurances of the passengers.
The advertising campaign should be evolved with new spirit irrespective of how well the come performs; the advertising campaign should be in run.
The employer has to be pushed, and it is important for the executives to work and handle the employee in cordial and healthy environment i.e. fun and love.
The present CEO and his secretary have renewed their commitment towards achieving all possible alternatives, and have taken concrete measures in this regard.
The company has to handle it rival with more convincing manner, it is equally important to avoid repeated court battles.
The company should start expanding…
Improving Quality Control in Airlines and Aerospace Manufacturing Industries
Airlines and aerospace manufacturing industries are aviation sectors that focus on the design, development, testing, selling, and maintenance of aircraft and their associated parts. These industries are also involved in the manufacture and maintenance of rockets, missiles, and spacecraft. As the aviation industry has experienced tremendous growth because of the increased demand in air travel, airlines and aerospace manufacturing industries have also experienced growth. The growth in these industries has also been fueled by the increased demand and focus on airline safety as well as the increased competitiveness in the airline market. The projected increase in global passenger traffic generates significant prospects for airlines and aerospace manufacturing industries. However, these industries are facing significant pressures with regards to enhancing quality control as part of improving the efficiency and safety of airlines. This project seeks to examine strategies that are needed to…
For short haul routes, customers have the option of driving or even taking the train. There are often low switching costs associated with driving. As the hassles associated with flying have increased, switching has increased as well. hile flights on longer routes are faster, there is often a price-performance tradeoff. The longer the flight, the lower the threat of substitutes.
The intensity of rivalry is high in the airline industry. There is little to differentiate airlines. Each airline has high fixed costs. Exit costs are high, as each airline has high fixed costs and only operates in the airline industry. In addition, the industry is subject to intermittent overcapacity. In addition, the service is highly perishable -- an empty seat cannot be resold later. This spurs intense competition to fill airplanes. ith low switching costs and a low diversity of rivals, there is a high degree of rivalry.
FRBSF. (2002). Competition and regulation in the airline industry. Federal Reserve Bank of San Francisco. Retrieved May 1, 2010 from http://www.u.arizona.edu/~gowrisan/pdf_papers/airline_competition.pdf
Grant, R. (2005). Contemporary strategy analysis. Malden, MA: Blackwell Publishing
McCormick, G. (2010). U.S. airlines more cautious on '10 fuel hedges. Reuters. Retrieved May 1, 2010 from http://www.reuters.com/ article/idUSTRE61O59Z20100225
Porter, M. (1980). Porter's five forces. QuickMBA. Retrieved May 1, 2010 from http://www.quickmba.com/strategy/porter.shtml
The most notable would include: a renegotiation of the contract rates and benefits for employees. This is problematic, because if the staff begins to see that managers are making irresponsible decisions or are becoming disconnected with employees, it will create the setting for increased amounts of animosity to occur. Once this take place, it means that the company could lose talented employees and may be forced to renegotiate with unions (which would undermine its business model). ("Southwest Airline Corporation," 2002)
When you look at the total effects of the actions that were taken by Southwest, it is clear that the strategy of independently negotiating labor contracts provided the desired results. This can be seen by looking at the various steps that were taken during the process. Where, Southwest would be concerned about labor issues that are affecting other carriers. To counter these concerns, the company would negotiate with…
New Employee Orientation. (2002). DAS. Retrieved from: http://www.das.state.ne.us/personnel/nkn/IIF/2006-01/new_employee_orientation_handout.pdf
Southwest Airlines. (n.d.). SOE. Retrieved from: http://users.soe.ucsc.edu/~callon/southwest.html
Southwest Airlines Corporation. (2002). Dartmouth University. Retrieved from: http://mba.tuck.dartmouth.edu/pdf/2002-2-0012.pdf
Gillen, E. (2004). Why the Airlines can't Straighten Up and Fly Right. Black Table. Retrieved from: http://www.blacktable.com/gillin041013.htm
Southwest Airlines Analysis
Established in 1971 by Herbert D. Kelleher and several business partners, Southwest Airlines has secured a strong position in the airlines industry over the last 35 years. Southwest and its wholly owned subsidiary, Air Tran, serve a combined 103 destinations in 41 U.S. states, the District of Columbia, the Commonwealth of Puerto ico, and six near-international countries (Johnson, 2011). Both entities combined offer over 4000 daily flights. The Southwest Airlines corporate vision and self-concept is "America's low-cost, low-fare airline" (West-Grubbs, 2005). This is more than an espoused philosophy -- it's part of an operational model that is permeated throughout all business operations.
Short "peanut" flights are the airline's specialty. Southwest operates almost exclusively with only one type of plane in its fleet -- the Boeing 737 -- a quieter, more fuel efficient, and easier to maintain model which has helped reduce costs. Profit potential is the driving…
Enz, C.A. (2009). Hospitality Strategic Management: Concepts and Cases. (2nd ed.). John Wiley and Sons.
Gittell, J.H. (2005). The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance. McGraw-Hill Professional.
Hill, C. & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. (9th ed.). Cengage Learning.
Johnson, Cynthia. (2011). "Industry Snapshot: Airline." Hoover's Online, [online] http://www.hoovers.com.
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 &…
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.
Business Market of Airlines
What is the Business Market of an Airline Industry?
Business market has been defined as a market that is characterized by fewer customers and larger transactions. Customization is the key and the usage of the product or service determines its value. Brand name means little to customers and there is no retailing. Also, selling is a complex process and the target of the sales pitch may not always be the end product's users (NarayanDas 2005).
This kind of market is different from customer markets and, service is the cornerstone of business markets. The products are customized to meet the needs of different customers in different geographical or operational regions. Also, every company operating in a business market strives to attain customer loyalty though the means by which they create and sustain it varies between industries.
With regards to the airline industry, business markets determine many aspects…
for Delta Airlines
The situation in the airline industry was already in trouble long before September 11, 2001. Major airlines like Delta was pursuing bankruptcy as an option to fight off organizational collapse caused by reduced traffic, skyrocketing expenses and potential pilot strikes for both the wholly owned subsidiary Comair and Delta's own pilots. Since deregulation, one of the only alternatives for the major airlines was bankruptcy. The terrorist hijackings on 9/11/2001, was simply added salt in Delta's wounds. This research paper is about a real-life negotiation for Delta Airlines and Comair. The report will do the following:
Identify the parties involved in the negotiation
Identify the central and secondary issues of the negotiation
Identify the interests of each party and why they care
Identify the opening positions of the parties and how they presented themselves
Identify the final position of the parties and how they evolved.
Collins, Michael, & Dias, Monica (2/3/2001). Delta Pilot Vote Sets Up Showdown. The Cincinnati Post.
Fonti, Nancy (6/21/2001). It's Official: Delta Pilots OK Contract 70% Vote Yes; Pay To Become Industry's Best. The Atlanta Constitution.
M2 Communications Ltd. (2001). Delta President discusses Comair pilot strike in Cincinnati. M2 Presswire, 5/11/2001.
It is not clear whether this lawsuit will find its way to the courts.
UAL has been undergone some major financial restructuring since filing for bankruptcy in 2002. The company has since talked of merging with American Airlines, Northwest Airlines, and most recently Continental Airlines Inc. In May of 2010, the merger between UAL and Continental was officially announced, and plans for the merger are currently being carried out (Moreno, 2010). This merger forms the world's largest airline, and its headquarters is in Chicago, Illinois.
4. Commitments and Contingencies
According to United Airline's Website, (2010), it is committed to, "operating a reliable schedule for every customer. Weather and Air Traffic Control (ATC) issues, along with other operational challenges, can cause delays and cancellations. We aspire to make our customers who experience long on-aircraft or in-airport delays as comfortable as possible during the inconvenience." (United Airlines, 2010).
The airline also promises…
Brancatelli, Joe. (2008). "The worst airline- ever." MSNBC Website accessed July 15, 2010. .
Moreno, Jenalia. (2010). "Continental and United merger meeting is today." Houston Chronicle, July 14, 2010.
Moreno, Jenalia. (2010). "Passenger lawsuit attacks Continental-United merger." Houston Chronicle, June 29, 2010.
UAL Investor Relations. (2010). "Investor Home." UAl Investor Relations Homepage accessed July 16, 2010. .
Classic Airlines Marketing
Classic Airlines is in a highly competitive market with little flexibility in terms of price flexibility, due to cost impositions in the industry. It is also faced with the complicating factor of having a highly split customer base: most business fliers travelling more frequently as individuals and willing to pay higher fares while demanding more locations, more frequent flight, fewer connections, and a higher quality of service for this premium; leisure travelers, which tend to purchase multiple tickets for a single trips (for families travelling together, etc.), are most primarily concerned about cost, and are more willing to endure connections, inconvenient flight schedules, lower levels of service and amenities, and other perks if it represents a cost savings. Ultimately, the company (like all airliners) is marketing two separate products to two different sets of people, and its marketing strategy should take this into account.
Marketing alone cannot…
Global Media. (2010). Principles of Marketing. Seattle: Global Media.
Landsbaum, M. (2004). Streetwise Low-Cost Marketing. Avon, MA: Adams Media.
Scribd. (2011). American Airlines Marketing. Accessed 22 March 2011. http://www.scribd.com/doc/23988526/American-Airlines-Marketing-Analysis
Terrorism Affects the International Tourism Industry
There is an undeniable relationship between terrorism and tourism. This is because of the industry power tourist sites are attractive avenues for terrorists to cause unprecedented magnitudes of economic and social disruption. The 21st century economy is dominated by three sectors namely information technology, tourism, and telecommunications. Tourism generates ten percent of international employment with a surplus of 30% in the Caribbean region. World tourism organization estimates that over two hundred million people across the world will be employed in the industry by 2015. The tourism and travel sectors have expanded by 700% in the last two decades (Gabbay & Ghosh, 2013). It is further projected that tourists will spend twice as much in foreign nations on tourism activities. For most developing nations, tourism is the leading source of income in terms of GDP thus a key influence in the economic growth. The issue…
Beirman, D. (2013). Restoring tourism destinations in crisis: A strategic marketing approach. Crows Nest, N.S.W: Allen & Unwin.
Gabbay, R. & Ghosh, R.N. (2013). Tourism and economic development: Case studies from the Indian Ocean region. Burlington, VT: Ashgate.
Keyes, D.C., & Jonathan L.Burstein. (2010). Medical response to terrorism: Preparedness and clinical practice. Philadelphia [u.a.: Lippincott Williams & Wilkins.
Huggett, C., & Pownall, D. (2010). Teaching travel and tourism 14. Maidenhead: Open University Press.
The company continually stressed the human nature of travel, and strove to make airplane travel affordable and enjoyable. Many people who used Southwest Airlines had never been able to fly before. However, the 'customer did not come first' at Southwest -- rather the customer came second, even though they "still got great service" (Friedberg & Friedberg 268). The company stood behind its employees, and allowed flight crews, for example, to use their expertise and knowledge to make autonomous decisions, rather than force the crews to worry about upsetting sensitive customers. The company believed that low fares and hospitality were what most customers care about, and did not focus on catering to customers with minor complaints. "Love doesn't guarantee approval... Although many people equate love and approval, they are not the same. Real love comes without conditions; it doesn't depend on anything. Approval must be earned by our performance" (Freiberg &…
Best practices case Study: Best perks, Southwest Airlines." The Vault. Retrieved 4 Aug 2008 at http://www.vault.com/nr/newsmain.jsp?nr_page=3&ch_id=401&article_id=19258&cat_id=1089
Case study: Southwest Airlines." (2005). CPP. Retrieved 4 Aug 2008 at http://www.cpp.com/pr/southwest_airlines_2006.pdf
Freiberg, K. & J. Freiberg. (1997). Nuts. New York: Broadway, 1998.
Kjerrulf, Alexander. (19 Jan 2003). "Book review: Nuts!" Positive Sharing. Retrieved 4 Aug 2008 at http://positivesharing.com/2003/01/book-review-nuts/