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This is where the company could have possible candidates go through a pre-hire test that will determine their levels of knowledge. At which point, the employees can then be divided into different levels of training ranging from experienced to inexperienced. Where, those that are the most experienced will receive on the job / in house training to prepare them for the position. While those employees who require more extensive amounts of training could be sent to the company training facilities, to be introduced to the various company policies / procedures and technology. The objectives for this position are: to ensure that all customer service representatives can be able to work independently, with little to no supervision. The techniques that the company should consider using, is augmenting the existing training that new employees have received with company specific training. Where, an evaluation will help management identify how many experienced customer services…… [Read More]
American Airlines: The AAdvantage Airline
The stark silver carriers with the tri-color stripes are seen in airports around the world, and though they may have a simplistic approach to their exterior, American Airlines still remains one of the largest airlines in the world, traveling to over 242 destinations in over 50 countries (OneWorld, 2003).
The story of American Airlines parallels the history of Charles Lindbergh who was chief pilot for an aviation company based out of Missouri. It was one of many companies that eventually consolidated to form American Airways, which became American Airlines in 1934. That year saw C.R. Smith become president of American, and "on June 25, 1936, American was the first airline to fly the Douglas DC-3 in commercial service. On Feb. 16, 1937, American carried its one-millionth passenger." (History, 2003).
American Airlines could be called the 'airline of firsts' as beyond being the first commercial service…… [Read More]
AMR is the parent company of American Airlines and American Eagle and represents a poor investment opportunity for many reasons. AMR lost 761 million dollars in 2004 with more bad news expected. AMR and the airline industry in general are affected by two negative industry dynamics, high fuel costs on the supply side and low revenue yields on the demand side (Chakravorty, 2005). Jet fuel accounts for twelve to fourteen percent of airlines' operating costs and is the industry's second-biggest expense after labor. Crude oil prices have risen eleven percent since the start of 2005. Further, airline fares are at historic lows and rivals such as Delta Airlines has ignited fare wars after capping its coach fares at $499 each way in January 2005 (Reed, 2005). The low-cost model of carriers such as Southwest Airlines and Jetlue are also putting price pressures on the industry. Less revenue and…… [Read More]
Asia-Pacific carriers and routes are expected to earn a large profit, Latin America to be the only region to deliver a third consecutive year of profits; while North America, Europe, the Middle East will post far lower than average profits, with Africa likely experiencing a $100 million loss (IATA, 2011).
American Airlines Receives Texas Commission on Environmental Quality. (2006, May 11). Retrieved from Airline Industry Information Service: http://findarticles.com/p/articles/mi_m0CU/is_2006_May_11/ai_n16359869/
American Airlines. (2011, June). About Us. Retrieved from American Airlines: http://www.aa.com/i18n/aboutUs/main.jsp
American Airlines. (2011, July 20). AMR Corporation Announces Largest Aircraft Order in History. Retrieved from News Release on Airline Purchases: http://aa.mediaroom.com/index.php?s=43&item=3286
Cameron, D. (2011, January 5). American Airlines ants Expedia, Orbitz to Come Around. Retrieved from The all Street Journal: http://online.wsj.com/article/SB10001424052748704723104576061891746793776.html
CNN Travel. (2010, October 12). Air Travel Report: DId in Delays, Spike in Complaints. Retrieved from CNN.com: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report
Forty, S. (1997). American Airlines. Dallas, TX: Ian Allan Publishing.…… [Read More]
ecently, American Airlines filed bankruptcy protection in order to allows it to continue operating. While bankruptcy for a company or a person is not looked well upon, it seems that there is a double standard when the operation of private companies is compared to methods used by the U.S. Government to stay afloat, such methods may also look askance at its extreme measures to remain solvent and to continue operating. Despite the negative connotations in bother instances, almost any issue contains pros and cons and balancing them will hopefully provide us with a good solution.
Analysis-Comparison and Contrast
The Chapter 11 bankruptcy that was announced in November of 2011. Its most recent incarnation has entailed the announcement of 14,000 staff cuts in order to cut costs and chart a way out of bankruptcy (Hicken, 2012). Unfortunately for American airlines, it almost seems that the biggest con they should…… [Read More]
American Airlines/U.S. Airways merger issues
In January 2012 U.S. Airways Group, the parent company of U.S. airways, expressed interest in acquiring AM Corporation, American Airlines parent company. This merger would add 1.5 billion dollars in revenue reduce competition in various cities and create one of the largest airlines in aviation history. For shareholders and workers this is a great thing. Some of the benefits are more destinations, more flights and the possibility of pay increment in all departments. All of these things are beneficial to individuals but there are a lot of potential issues as well. The issues being discussed in this case study are the labor unions and how they will manage to take the responsibilities of transferring employees over, U.S. Airways leaving the Star alliance to join One World, employees that could lose their jobs, including American Airlines CEO Tom Horton. There are a lot of comparing and…… [Read More]
Discuss how senior management's short-term focus on stock price in a publically traded company can lead to unethical behavior.
If senior management has a short-term focus on stock price as its central motivation, that can lead to unethical behavior. The role of management is to increase the wealth of the shareholders (Friedman, 1970), something that must be done over long run, not the short run. A short-run focus on the stock price does not have to be mutually exclusive to building long-run value, but it often is. Management may either utilize strategies that favor a small short-term return over a broader long-term improvement or it may engage in various forms of accounting fraud to make the company appear more profitable than it actually is. The former is more of a policy choice; it may not be unethical as much as it is stupid. The latter is unethical and…… [Read More]
In order to reach and maintain this business standards, the company has created a set of basic rules for itself, regarding the respect for the customer and the ethic principles.
One of the sources of competitive advantage that the company benefits from is represented by its Human Resources policy. The importance of the relation that the company has with the members of its staff is worth underlining. One third of the American Airlines expenses go to wages and benefits. The proper motivation of the employees makes the company function in an efficacious manner. The god relations that American Airlines has are not just with the employees themselves. The company has reached agreements with three major labour unions, obtaining mutual advantages in terms of costs and payments.
Another source of competitive advantage for American Airlines is represented by the strategies which it uses in order to obtain and maintain the loyalty…… [Read More]
AMEICAN AILINES AND U.S. AIWAYS MEGE
PLEASE ASSIGN THIS PAPE TO BETTY 2115322 QUESTION MUST BE TYPED IN BOLD AND NUMBEED Assignment 2: Mergers Acquisitions Due Week 6 worth 200 points Use Internet research a publicly traded company United States undergone a merger acquisition (3) years.
Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or to acquire / be acquired was made.
American Airlines parent company AM Corporation had filed for bankruptcy in 2011 because of high costs of leasing aircrafts and labor Soyoung Kim, Feb 14, 2013.
American Airlines had an option of merging with another airline even though it had filed for bankruptcy. The parent company could not service its debts and creditors had no way of recouping their money. American Airlines had a large fleet and this made the airline…… [Read More]
American Airlines is "the nation's No. 3 airline by traffic" (Spector, M. & Carey, S. April 4, 2012) and reaches "250 cities in 40 countries with, on average, more than 3,400 daily flights" (American Airlines.com. 2012). In this analysis the booking prices for a roundtrip flight between New York: John F. Kennedy Airport and Los Angeles: International Airport will be researched.
The parameters of this exercise are designed to ensure the most consistent results. As such, "departure fares per person are in U.S. Dollars (USD), based on Round-Trip purchase" (American Airlines.com. 2012) with a non-stop flight. Data is based on a fixed seven day trip, because changing the length of the trip impacts the rate; and the departure time each day is variable because flight times are not always available each day. American Airlines offers a First Class / Business option and an Economy option; in addition there are six…… [Read More]
Neither United Airlines nor Delta Airlines has been able to generate substantial cost savings in terms of fuel, albeit for circumstances beyond their control.
In contrast to the other airlines, "Houston-based Continental Airlines Inc., the fourth-largest airline in the U.S., has actually invested in customer-service improvements, increased its routes, and kept prices steady, all while managing to lose the least money last year," an impressive statistic when one considers that while Continental lost $68 million in 2005, Delta lot $3.8 billion. Continental has deployed a unique strategy of emphasizing one core competency. It was unable to slash fares drastically because higher fuel and labor costs, and it could not compete with the prices of value carriers, so it instead identified Continental's most valuable customers and offered them unique customer services such as automated tools and greater efficiency. Technology is its emphasis in customer service
For example…… [Read More]
Furthermore, while it is true that American recently implemented a refund and $50 voucher guarantee for consumers who find a lower possible fare to their destination, also to keep up with pricing pressure from low-cost carriers, Continental had already implemented such a guarantee first. This may contribute to the industry perception that once-dominant American Airlines is merely playing catch-up with even major carrier rival in terms of consumer incentives and is not offering substantial product innovation and superior customer service. ("American Airlines struggling to hang on to price-shopper market" 2005, Reuters).
According to Michael Porter's Five Forces analysis of market behavior, the airline industry traditionally has had a low threat of entry -- there are numerous regulatory and financial blocks to easy entry and exit of major suppliers. It is harder, in other words, to open up an airline than a new pizza parlor down the block. However, with the…… [Read More]
Southwest's interest coverage is comfortable, at 3.909. Southwest's operating leverage is high, as they are in a low margin business. They had a negative change in EIT over the period, as did AMR, despite both having higher sales. Southwest's combined leverage is 1.505, much stronger than AMR, which suffered a huge decline in earnings per share despite having higher sales.
10) the weighted-average cost of capital for Southwest is 0.56%. This is based on a risk free rate of 1.2% (three-month T-ill) and a historic return on the Dow Jones of 3.2%. For AMR, the WACC is 3.53%. This reflects that AMR's equity has a negative value, and that they do not pay dividends. Their cost of capital is the cost of their debt.
11) LUV's chart is very stable, whereas AMR's is not. AMR has been highly volatile in the past couple of years, showing strong gains and then…… [Read More]
FAA's runnings-in with American Airlines shows all the problems of organization that the government faces as well as quite accurately point to the truth of the sentence that the people come last. And yet this sentiment may not be as precisely accurate as seen in first impressions since the FAA's intentions in procrastinating the airline was ultimately for the safety of the people. The only problem was the way in which it was done, indicating all the limitations involved in government organization.
The case study reports that in 2008, the FAA decided to make longstanding evaluation and repairs on the wiring specifications of American Airlines. Federal inspectors had long ago discovered that American Airlines had failed to comply with Federal Aviation Administration (FAA) wiring safety requirements that groups of wires need to be tied tightly together at intervals of more than an inch. The surveillance, which should have been done…… [Read More]
These were confirmed by the changes in the longitudinal (0.20 to 0.14 G), lateral (0.05 G. To the left) and normal load factors (1.0 to 0.6 G). [NTS ]
The data also showed that between the critical time of 0915:52 and 0915:58.5 five separate rudder movements (1.7 inches right to 1.7 inches left, 1.7 inches right, 2.0 inches right, 2.4 inches left, and 1.3 inches right) were noticeable. The FDR data also showed extreme and alternating control wheel movements during this time (64° to the right at 0915:51.5, 78° (full) to the left at 0915:53.5, 64° to the right at 0915:55.5, and 78° to the left at 0915:56.5.). [NTS] The enormous aerodynamic stress due to these extreme control operations of the rudder ultimately resulted in the breaking away of the vertical stabilizer and the crash of the aircraft. It was found that the vertical stabilizer exceeded the design loads by…… [Read More]
American Airline Is Based on a SWOT Analysis Focusing on Weaknesses, Opportunities and Threats
Weaknesses & Opportunities
Enhance international offerings through strategic alliance in Asian markets (W1, O1)
The development of a strategic alliance within the Asian markets would help the airline to take advantages of opportunities while reducing weaknesses. The Asian aviation market is forecast as presenting significant opportunities. The Asia Pacific is forecast at becoming the third-largest aviation market, behind the U.S. and China by 2035 (IATA, 2013). In October 2015, more than 23.2 million passengers were carried in this area (FE Online, 2015), with relatively high load capacity of 76.9%, and a focus of exponential growth expected to increase market further, with the area accounting for 31.7% of all global passengers by the year 2017, an increase from the 2012-1128.2% (IATA, 2015; 2013).
These growth forecasts indicate that the Asia-Pacific market makes it attractive, as it presents…… [Read More]
Crash of American Airlines Flight 1340
An American Airlines' Boeing 727 operating as flight 1340 from Kansas City to Chicago met with an accident on February 9, 1998 (0954 central standard time), while landing at Chicago O'Hare International Airport (OD). Although there were no fatalities, 22 passengers and 1 flight attendant (out of the 116 passengers, 3 flight crewmembers, and 3 flight attendants on board) received minor injuries, and the airplane was substantially damaged. This is a research paper which traces the sequence of events leading to the accident, describes the crash and its aftermath, and analyzes its possible causes.
Sequence of Events Leading to the Crash
Flight 1340 departs from Kansas City International Airport on February 9, 1998 after a one-hour delay in the scheduled flight time because of poor weather conditions at the O'Hare International Airport, Chicago. ("Aircraft Accident Brief," 1998, p.1)
After an…… [Read More]
In early 2013, the merger between US Airways and American Airlines became official, and by April 2015, the final regulatory hurdle – FAA approval - had been cleared (Maynard, 2013; Holmes, 2015). The merged airline had significant strategic implications, including US Airways leaving the Star Alliance (Maynard, 2013). The implementation at the time the deal was announced was expected to take between 18 and 24 months, and that time frame remains valid – FAA approval is a precursor to the final operating merger between the two airlines.
The deal was announced in early 2013 was yet another in an ongoing round of consolidations within the US airline industry. The deal was worth $11 billion, and was structure shortly after American emerged from bankruptcy proceedings (Isidore, 2013). American was losing market share prior to the deal, and US Airways was vulnerable as one of the smaller domestic carriers, so there…… [Read More]
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.…… [Read More]
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…… [Read More]
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…… [Read More]
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.…… [Read More]
Why Did American Express succeed in the U.S.A. And Internationally?
It succeeded because the company established an outstanding reputation in its core businesses very early in its lifetime. It also took advantage of the competition during both World Wars to support its customers with financial assistance when they needed it. Its business decisions, all told, were solid. It divested itself of non-profitable segments when necessary, and put the emphasis always on its core businesses -- travelers' checks, its travel business, and credit cards. AmEx has maintained flexibility as well in adapting to consumer's demands and the needs of its business, such as issuing the revolving credit card when that segment might have failed.
oday it is one of Forbes Magazine's top 100 companies.
How is American Express surviving the 2008-2009 Economic Crisis?
Diversification of its business. he American Express credit card business in the U.S. dropped 96% from early 2007…… [Read More]
In addition to a lightened burden of proof and broader definition there were two additional changes resulting from the amendment which served to positively affect the impact and ultimate effectiveness of the legislation. This amendment clarified the fact that judges are not allowed to assess possible mitigating factors such as medication, corrective surgery, or specialized equipment in the determination of whether or not an individual is disabled. This change is directly related to the Sutton case. Further the amendments clarified the definition of major life activities. This amendment relates directly to the Williams case in which a judge deemed that Carpal Tunnel wasn't in fact a significant impairment to major life activities, it merely precluded her from successfully completing specific tasks in the work place. Though the language of the Act is still quite ambiguous, these changes help to clarify and protect the intention of the act.
Exceptions…… [Read More]
" (Iyengar, 2001) Lastly, the manner of presentation of a news story "significantly affects its ability to set the public agenda." (Behr and Iyengark 1985; Dearing and Rogers, 1996) Concluded is that: "In the current regime, American politics is almost exclusively a mediated experience. The role of the citizen ahs evolved from occasional foot soldier and activist to spectators. Those who seek public office invest heavily in efforts to shape news coverage of their candidacy. The returns from this investment provide them with leverage over public opinion, by setting the public agenda or by projecting a general impression of competent leadership..." (Iyengar, 2001)
The report published by the "ediaatters for America' website entitled: "According to aher, CBS's "Free Speech" is a isnomer" states that Bill aher, HBO's Real Time with Bill aher show host states that "CBS rejected his request to comment on religion for his planned "Free Speech" segment…… [Read More]
American Chemical Society. (March 5, 1999). "Smart Fire Resistant Polymers Under Study for Use for Aircraft." http://www.sciencedaily.com/releases/1999/03/990325052952.htm
Define the business research and its purpose
One problem that continues to plague the aircraft industry and continues to threaten consumer's comfort and use of air travel is the issue of safety. There is a lingering perception that airplane transport is unsafe, despite the fact that traveling in an airplane is actually, statistically safer than traveling in a car. However, rather than simply combat this problem with statistics, aeronautics industry analysts are also trying to engage in practical efforts to make air travel safer. According to a 1999 national meeting of the American Chemical Society, the world's largest scientific society, "to prevent some of the deaths" in what are termed "survivable" or less damaging airplane accidents, "40% of which are due to fires," new polymers are being created by scientists, the industry, and…… [Read More]
American Terrorist Threat
Since the events of September 11. 2001. Americans have had an increased concern about the possibility of more terrorism within United States borders. Although our government has made monumental efforts to prevent future attacks. A terrorist only has to slip through once. whereas our vigilance has to be 100% successful at all times. ecause of that fact it seems inevitable that eventually. we will see more terrorist attacks within the United States.
ecause we were attacked by people from outside our borders. many Americans tend to think of terrorist threats as in terms of outsiders who come here to do harm. Thus we have increased supervision at border entries. We know that this can work; an alert border guard between Washington state and Canada stopped a car and probably foiled a terrorist attack planned for Los Angeles.
However, some terrorist experts believe that we already have terrorist…… [Read More]
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…… [Read More]
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
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.…… [Read More]
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
The external…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
In this regard, Selzer notes that, "Pan American World Airways was a great carrier and a foremost representative of the American way around the world. Its triumphs were one of the major reasons why English is the primary language spoken in air-traffic control towers throughout the globe" (p. 20).
Notwithstanding these early successes, by the late 1980s, though, Pan American was experienced serious financial trouble and sought relief through wage and benefits negotiations with the flight attendant and flight engineer unions (uben 1989). By the early 1990s, the writing was on the wall for all to see and Pan American's days were clearly numbered. Based on his analysis of Pan American's demise, Branson (2007) suggests that Trippe was relatively out of touch with the important global events that swirled around him during the early 1990s and failed to respond to these changes in a timely fashion. According to Branson, "Trippe…… [Read More]
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,…… [Read More]
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…… [Read More]
" (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…… [Read More]
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.…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
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…… [Read More]
Classic Airlines has fallen into the organizational and strategy trap many of its predecessors had, and that is seeing price as the most valuable strategy to overcoming dropping passenger rates and profits. In fact, that is exactly the wrong strategy to pursue, as this analysis will show. The airline is creating a culture of cost reduction over customer service, and this is lethal on the trust customers have in their ability to deliver a valued, unique customer experience. Their 56% rate of dissatisfaction with the ewards program, 20% reduction in passenger traffic or 160,000 customers, and the continual spiral the internal departments are in regarding collaboration are all symptoms of a make larger problem. They have taken the customer out of the center of their business and put internal cost controls in their place. Ironically, this decision and its quick and significant reverberations throughout the company are just increasing the…… [Read More]
Economics of Southwest Airlines
A Brief Economic Analysis of Southwest Airlines Today
Southwest Airlines was incorporated in 1967 and has its headquarters in Dallas. It is a U.S. airline that offers domestic point-to-point service; as of December 31, 2004, the company operated 417 Boeing 737 aircraft, with service to 60 airports in 59 cities in 31 states (Southwest 2); the company also has at least another 261 Boeing 737-700s on order (Comerford 1). Today, Southwest has six reservations centers (one each in Albuquerque, Chicago, Houston, Oklahoma City, Phoenix, and San Antonio); in addition, the company sells credits to its business partners (these include credit card companies, hotels, telecommunications companies, and car rental agencies) (Southwest 3).
Economic Performance and Discussion
hile much of the aviation industry was devastated by the terrorist attacks of September 11, 2001, Southwest has managed to maintain an even keel due in large part to the progressive…… [Read More]
Only a small percentage of flights are booked using travel agents. The primary means for customers to purchase tickets is directly from the airline over the phone or online at the company's website http://www.southwest.com/. Using this method, customers have access to offers that are only available on the web.
Southwest's marketing campaign is based on setting itself apart through branding. For instance, Southwest uses a "cattle call" method of seating. Customers are not assigned seats, but board in three groups according to arrival time. This allows the airlines to board passengers more quickly. In addition to this key difference, Southwest allows passenger to change reservations without incurring any additional costs, as with other airlines. However, Southwest does not offer same-day standby on a different flight. This service is usually free on other airlines without upgrading.
Southwest is the bare bones carrier. They offer Snack Packs of prepacked goods instead of…… [Read More]
P proposal for revitalizing the public image of United Airlines. It has 9 sources.
The airline industry has always been susceptible to terrorist events such as hijacks. Depending upon the magnitude of the terrorist act, the airlines functioning in the industry are pointed fingers at for having an infrastructure allowing a breach in security. A relatively small event of an airline being hijacked may only target the particular airline for blame. However, a terrorist event with magnitude as great as September 11, the whole airline industry functioning is targeted for blame. Therefore it is the responsibility of the airlines functioning in the country to coordinate efforts, resources and programs in order to implement a greater level of security of passengers. Provisions to eliminate the probability of terrorist activities must be made by each airline in the industry.
The aforementioned are the tangible provisions airlines must introduce to counter the tangible…… [Read More]
Another means in which Southwest Airlines resembles McDonald's is given by the very use of the onald McDonald House for charity events. McDonald's has been developing charity actions through sustained donations to the charity houses for nearly four decades now (Website of the onald McDonald House Charities). As of 1983, when a Southwest Airlines pilot lost his daughter to leukemia, the airline operator has also been annually donating money to the charity. Additionally, the company also volunteers employees to help in the charity houses (Airline Industry Information, 2005).
These actions of Southwest can be assessed from two distinct angles -- both similar to the angles of assessing the charity decisions of McDonald's. In this order of ideas, the first angle is constituted by the fact that the companies become respectable members of the community. They show their support to community causes and they are socially responsible by giving back to…… [Read More]
Since its inception, Southwest Airlines has grown significantly to become one of the most reputed, low-cost, and longest-standing airline that offers the largest number of domestic flights within the United States. For more than four decades now, the company has been able to sustain its appeal to consumers and its low cost originator image, even though that discernment and view has now become more of an old tale than the present reality. The airline company has done well to increase and improve its market base all over the United States; however, it lacks presence in the international market.
SWOT Analysis is a valuable and convenient tool employed for understanding a firm's strengths and weaknesses, identifies the opportunities available for the organization and the threats it faces. In the business realm, an organization can utilize this technique in order to attain a sustainable share in the market. The company…… [Read More]
culture in an organization using Southwest Airlines as a model. It uses Geert Hofstede Four Dimension of Culture to analyze the company and provides an over view of how the company's policies enable it to secure a top position in the industry. It uses 5 sources in MLA Format.
Globalization has changed the way people do business today. Factors like strategies, resources or capacity to produce has become secondary to business agendas. Instead today businesses and businesspeople are more concerned with how they can achieve the maximum productivity and prosperity through alliances. These alliances often span far and wide, pilfering to foreign cultures. Often the alliances prove beneficial to the companies because of observation and approach companies take to deal with partner company's culture. On the other hand there are also cases where the alliances have resulted in losses because partner companies fail to understand each other's culture. For instance…… [Read More]
September 11, 2001, most Americans went on with their daily activities without fear of invasion of their own country. They read about the bombings and wars in other countries, but did not believe that similar events could happen in the United States. Those men and women who lived through World War II naturally recalled exactly what they were doing when they heard about Pearl Harbor. Yet, since that event happened so many years ago, even these individuals assumed that their land was now protected. After September 11, 2001, these peaceful thoughts were shattered, but for how long? Are Americans going back to their complacency? Do they now once again believe that the country is once again invincible?
Many people who were watching television at 8:45 AM, Eastern Daylight Time, on September 11, 2001 thought they were watching a commercial for a movie when they saw an explosion of the north…… [Read More]
corporate merger between Delta and Northwest airlines in order to find out the possible reasons why it was necessary. We evaluate the merits associated with corporate mergers and the challenges that might be faced in the process. A recommendation on how mergers should be carried out is also provided
Mergers and acquisitions form a very integral part of the contemporary corporate landscape. Kolker (2010) points out that initial six months of the year 2010 witnessed the total value of global acquisitions increase to 2.7% to a monetary value of $915 billion. This was an increase for the initial six months of 2009. 2010 however was off to a rather slow start as compared to 2006 which recorded an excess of $3.8 trillion in transactions related to acquisitions (Yeary, 2007). It is worth noting that it is never the volume of the deals that matter but their size. Averagely, there were…… [Read More]
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…… [Read More]
Marketing Plan for Travel Today Agency
The market segmentation that Travel Today will adopt is geared towards enabling the agency define its target customers and minimize on time and cost by capitalizing on the defined target market. The company will, in this respect, target the holiday goers especially during the summer holidays when the South American coasts and Brazil are famous destinations. The agency will hence negotiate for group discounts in order to create a bigger customer base among the holiday goers whom would consider it worthy cutting any costs for more money to spend at the holiday destination. Psychographic segmentation will also apply in this aspect as the agency will be covering the Cuban route bearing the recent political developments and the ultimate lifting of embargoes and sanctions to the country. The psychographic factors take into account the social class, personality and lifestyle of the intended target…… [Read More]
Courtney, Bailey. "Supersizing America: Fatness and Post-9/11 Cultural Anxieties." Journal of Popular Culture 43, no. 3 (2010): 441-462.
Courtney discusses the impact of fast food on the health of Americans focusing on the documentary film "Super-Size Me" that accuses Mcdonald as the major contributor of health effects of American people. According to the author, the obesity is threatening the health of the American society because there is likely to be an increase in the childhood obesity in the nearest future. Thus, the author suggests that Americans should inculcate a diet culture to get thin.
Carla, Rice. "Becoming "the Fat Girl": Acquisition of an Unfit Identity." Women's Studies International Forum 30, no. 2 (2007): 158-74.
Carla explores the theory of feminist poststructuralist of fat that narrates diverse fat women in the Canadian context. The author documents the cultural message regarding fitness and fatness contributing to the perceptions of the…… [Read More]
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
The Air Line Pilots Association (ALPA) not only helps with safety issues and…… [Read More]
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…… [Read More]
Positives and Negatives from a Century of Aviation
Little did the Wright brothers know, on December 17, 1903, when they successfully tested their flying machine at Kitty Hawk, what an influential industry they were launching. They could not have known in their wildest dreams that ninety-nine years later, an airport called Chicago O'Hare would facilitate some 383,362 landing and takeoff cycles each year. Or that by 1967, sixty-four years later, aerospace would become America's leading industrial employer, with some 1,484,000 employees, and sales of $27 billion, according to author Donald Pattillo (Pushing the Envelope). Nor could the Wright brothers know that a man would fly to the moon, and walk on the moon, by 1969, just sixty-six years after that little plane at Kitty Hawk left solid ground for a few triumphant seconds.
ut though the Wright brothers' crude little aircraft got the aerospace industry off the ground to become…… [Read More]
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.
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…… [Read More]