Throughout the uses of their website by these three dominant segments, Delta is also capturing click stream data to see how they can anticipate and better improve the automated processes on their website as well. Using technologies developed by DoubleClick and Overture from Yahoo in addition to those from Google, Delta is learning how to better define the navigational points on their website to better serve the three dominant customer segments they target today. They are also learning more intensive information about each of these three segments through the analysis of click stream data as well. Delta has an ethical and legal responsibility to manage this data in a secure and private environment to ensure it is not sold by employees or worse, stolen and used by competitors or marketers in related companies. Delta has an intensive it security strategy that seeks to protect the confidentiality of its customers on…… [Read More]
S. And other nations (O'Neal, Jacob, Farmer, Martin, 2007). As a result, there is much dissatisfaction specifically in the areas of pricing, price discounting and the configuration of schedules to get optimal pricing. It has been common in the past for customers to be charged up to $300 to $400 more fares for alleviating a one-stop fare when a nonstop fare into a non-hub city became available. Customers have complained this is more of a factor of Delta's lack of flexibility in managing flight reservations and scheduling. Second, Delta has room for improvement in the boarding and deplaning process, specifically in how zones are defined and the planning & deplaning process is management. The queuing of this approach has at times been considered elitist due to the separate lanes and the cavalier attitude given to the most senior frequent flyers over just a customer (Wasmer, Bruner, 1991). It had been…… [Read More]
Delta Air Lines Inc
Delta Airlines Inc.
Delta Air Lines, Inc. is an established American airline, which operates under the name Delta Air Lines. Delta Air Lines has her headquarters in Atlanta, Georgia in the United States. The airline operates over an extensive domestic and international network, servicing all the continents of the world with the exception of Antarctica (O'Neal, Jacob, Farmer & Martin, 2007). Delta Air Lines operates over five thousand flights on a daily basis in conjunction with its subsidiaries. The corporation has an extensive workforce that has approximately eighty thousand employees. Delta Air Lines started operating in the year 1924 and later expanded and grew over the challenges any other business faces; to become the world leading business-corporation it is to date. As a top company in the market, it covers Delta Air Lines specializes in the service of domestic and international flights only.
The impact of…… [Read More]
Delta Airlines is headquartered in the United States. The airline industry is heavily-regulated, in particular where public safety is concerned. The airline industry was also transformed in the late 1970s by deregulation, a process which has opened up competition and created the conditions for the industry consolidation that is still ongoing today (The Economist, 2013). Most of the legal/political environment for Delta is the FAA, or Federal Aviation Administration. This is the body that governs the airline industry, and sets the standards by which airlines must operate. There is no discrimination between airlines by the FDA. The Department of Justice is also a factor, because that department governs the mergers between airlines in order to ensure a competitive market. Thus far, airline mergers have been permitted, and there are still protections from the FAA with respect to foreign carriers and their ability (or lack thereof) to operate on domestic U.S.…… [Read More]
Problems with Delta Airlines
The data collection instrument in this case will be survey. This is due to the fact that it is the clients that will be dealt with mostly in trying to find out the challenges that affect the airline most. The survey method will also be convenient since the client will simply pick the survey form and board the plane and fill it in while traveling and drop it upon arrival in the airline's survey form collection boxes that will be stationed in all major routes.
Delta Airline survey chart
Instructions: Please assist by completing the following survey and dropping it off at our offices collection points upon your arrival.
Gender: Male Female
Survey Rating Scale
How would you rate the organizational hierarchy responsibility to you as a client?
Pick a rating
How satisfied are you with…… [Read More]
Customer care problem at Delta Airlines
The customer care at the airline has been dotted with lots of complains from the clients over poor phone etiquette, reluctant staff, poor response to complains, lack of attention to the clients and rather spending time socializing with each other at he expense of the comfort of the clients. This has made the company have a negative publicity both online and among the clients through word of mouth (Skytrax, 2012).
The challenges that this paper seeks to address then includes how the airline can identify the weaknesses, how can the airline work on the weaknesses that there are, how can they influence the entire employees body to change the customer relations culture to correspond to the philosophy of the company which is "service from the heart"?
In order to identify the challenges that are encountered, the airline needs to solicit information from…… [Read More]
e-mail marketing campaign Delta Airlines (www.delta.) identify: • Among existing Delta Skymiles members visit Sky Club • Would attend Sky Club membership lower, $100 current $300.
E-mail marketing campaign for Delta Airlines
Delta Airlines is a reputable organization, a leader in the airline services industry. Still, it has to recognize that the societies are rapidly evolving and that a massive part of this development is due to the advancements in the community of Information Technology.
IT was initially an isolated preoccupation, but it gradually became transformed into the most popular development of the modern day society. IT applications and features impact all aspects of the every day life, from the preparation of the meals to the completion of the professional tasks.
Within the organizational climate, Information Technology and Communication is present at all levels and influences all types of operations, from the management of the staff members, to the completion…… [Read More]
Least Admired Company: Delta Air Lines
The aviation industry has seen significant changes that have had massive impact on the operators due to the globalization and the shifts in local economic trends over the past decade. This has meant that the airlines have had to make significant adjustments as well as innovations that would enable them to stay afloat in the industry. However, amidst all the coping strategies that airlines have adopted, there are still some airlines that face massive challenges in ensuring they meet the local as well as the global demand for their services, one such is the Delta Air Lines.
The Delta Air Line has a long history, and was started as a crop dusting operation in 1924 under the name Huff Daland Dusters and since then ahs grown and diversified into passenger and cargo services with a global reach. They once indicated to be serving 160…… [Read More]
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.
Identify key…… [Read More]
Domestic and Global Environments
Delta operates in the airline industry and competes with other leaders in the industry including brands such as Frontier Airlines, United Airlines, American Airlines and Southwest Airlines. These are the dominant firms in the industry and Delta rates second highest in terms of volume. Delta's overall performance has improved recently compared to previous performances. Yet, there is one customer service issue that has gained publicity which is their propensity to bump people off flights due to overbooking and this practice is fairly pronounced and thus drags them down rating-wise (NY Post, 2014). Customer service is especially relevant because the domestic industry in general is highly competitive and consumers have multiple options for flights. Airlines in the domestic environment typically try to offer differentiation in service to create consumer value and create brand loyalty.
The government tends to regulate the industry mostly in the form…… [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]
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]
Delta Airlines relies on a number of elements of hard and soft technology in its business. Hard technology includes aircraft, materials (baggage) handling facilities, airport facilities and telecommunications technology. Soft technology for Delta includes the scheduling software, which is critical to maximizing uptime for the company's aircraft, and for determining how often the company should fly which routes. Furthermore, pricing algorithms help Delta to achieve the optimal balance between ticket prices and passenger miles flown, all of which contribute to the company's ability to be profitable in a highly-competitive market. There are also algorithms that help the company to determine how much fuel it should hedge. Much of the critical software that Delta uses is not developed internally, but rather by third parties like Sabre, which makes schedule management software (Sabre, 2015).
One critical area of soft technology for Delta is customer service technology. Delta developed this system in-house, as…… [Read More]
Delta Airlines is a U.S. airline that services primarily domestic routes, in addition to some routes between the U.S. and other countries. Because of restrictions in the airline industry, airlines are barred from servicing domestic routes in foreign countries. Thus, the U.S. is effectively closed to non-U.S. airlines for travel between American cities, and Delta cannot expand to routes that do not include an American city. The socio-cultural context for Delta is therefore almost entirely related to the American market.
For the airline industry, there is actually little difference in the relationship that consumers have with airlines. Airlines provide a service that is highly standardized the world over. Where there are consumer differnces, these are reflected in the service-price dimension primarily. In some countries, consumers prefer to pay more to get a better in-flight experience. This is true of the focus country in this report, Japan. In the United States,…… [Read More]
On April 15, 2008, Delta Air Lines and Northwest Airlines formally announced a merger agreement forming the largest commercial airline in the world; a fleet of almost 800 aircraft. This combined airline, still known as Delta, would have a value of $17.7 billion. In addition, due to the merger and the proposed benefits and synergisms, the company stated that it had come to an agreement with its pilot union to extend the collective bargaining agreement through the end of 2012; providing Delta pilots a 3.5% equity stake in the newly created organization (Rhoades 2008).
On September 26, 2008 the shareholders of both companies approved the merger, with only a Federal antitrust review board's approval. As expected from most analysts, the merger was approved by all requisite Federal agencies, largely due to the minimal overlap between the two carriers' routes and very little threat to competitive industry pressures. A…… [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]
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]
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]
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…… [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]
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]
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]
FedEx Express Airlines (Case Study)
In this case study, we will be looking at FedEx Express's hub airports. The airports will include Memphis International Airport (MEM) and Indianapolis International Airport. The focus will be mainly on capacity, traffic, and what is planned for the future of these airports.
FedEx Corporation is one of the largest companies in the courier industry. The company is renowned not just nationally in the United States, but internationally. FedEx Corporation belongs to the parcel service industry segment. The size of the industry segment is quite large in the sense that in the past fifteen years or so, consumers in America have spent beyond fifty billion dollars in shipping packages, parcels and also letters. Also referred to as Federal Express, the company is a big player in the segment and is positioned as one of the trailblazers in the industry segment (FedEx Corporation, 2014). The following…… [Read More]
As Norman points out, solving a problem in ergonomic design is sometimes not as easy as addressing the issue/complaint brought to one's attention: usually, the real problem lies underneath where the "real issues" are and needs to be discovered through a deeper assessment of the situation (Norman 218). For this paper, a deeper assessment of the ergonomic design of economy class seats of Delta's B777-200, which can seat 268 passengers, is performed in conjunction with a review of Norman's Chapter 6 and Chapter 7 from The Design of Everyday Things and Chapter 11 from Bridger's (2009) Introduction to Ergonomics.
Delta's 31-inch pitch seats are right in the middle of the spectrum of major airline providers, with Jet Blue having the most pitch at 34-inches and Spirit coming in at 28-inches for a tight squeeze in the rows. Delta's economy class is a mid-level pitch approach to seating and…… [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]
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]
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]
Classic Airlines has the reputation of being the world's fifth largest airline, which commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. Classic, around for more than 25 years, employs more than 23,000 employees and the year before this report earned $10 million on $8.7 billion in sales.
Classic also has a glorious reputation for its integrity with Labor Unions due to the fact that it accords fair wages to employees and pilots -- ranging on the high-end of the spectrum -- and catering to comfort of employees.
Unfortunately, whilst employees are content, consumers are not. The disaster of the recession coupled with terrorist scares has caused reduction in consumers flying the airlines with increasingly more of their former passengers selecting other flights.
Their top competitors are airlines such as United Airlines, Northwest Airlines, and British Airways who, although facing general threats…… [Read More]
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…… [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]
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]
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]
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]
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
Recent Policy Initiatives to Raise Low Pay. (2004). Retrieved Feb 1, 2008, from ACORN.ORG: https://www.acorn.org/index.php?id=203
FRSF Economic Letter. (January, 2002). Airline Competition. Retrieved Feb 1, 2008, from Olin usiness School- Washington University: http://www.olin.wustl.edu/faculty/gowrisankaran/pdf_papers/airline_competition.pdf
Virgin Territory (2006, September 30).…… [Read More]
(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…… [Read More]
Southwest Airlines is a discount airline in the United States, and is one of the industry leaders as the #3 in market share (Portillo, 2012). The company has a large network of flights around the U.S. Recently, it is has turned its back on the discount carrier model and begun to price more in line with industry norms (Martin, 2013). The company faces the same supply chain issues as any other airline. As a service entity, staffing is a major input. The company's biggest commodity worry is fuel, which is a major cost driver. There have also been recent issues with respect to parts and maintenance, which are also elements of the company's supply chain, especially with respect to the procurement of good parts (Ferrari, 2009).
Business Strategy and Structure
As noted, Southwest operates as a discount carrier in the airline business. It has recently shifted…… [Read More]
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.
CONCLUSION…… [Read More]
As the value proposition that the company was based on, the attractiveness of flying when it is equal to or less than the cost of gasoline for the comparable trip has helped to create a unique niche for this airline. Their reliance on regional airports within 500 miles of each other has also contributed to the unique value proposition being realized for millions of customers a year.
Southwest Airlines Internal Analysis
SWA is well-known for its ability to keep costs down by concentrating on smaller, less expensive and less congested airports in conjunction with relying only on one type of aircraft, which is the Boeing 737. It has been well-documented that SWA achieves significant training and maintenance cost reductions as a result of relying on a single type of plane (Southwest Airlines Investor elations, 2009). Standardization on a specific type of jet has also enabled the company to streamline and…… [Read More]
Low Cost Airline in Thailand
The Study on Improvement of Low Cost Airline in Thailand
Geography of Thailand
Nature of Airlines
Variables under Study
The Profitability of Low Cost Airlines in Thailand
Operating esults, Selected Airlines, Financial Year 1999
The Economies of Scale Attained By Airline Industry
Human esource Practices
The future of low cost Thailand Airlines
Contrasting Qualities of State Owned and Non-State Owned Airlines
The Study on Improvement of Low Cost Airline in Thailand
Thailand is a global source for customers seeking cheap labor or material inputs. The country is rich in natural resources -- tin, rubber, natural gas, tungsten, and timber being a few examples. The country is a major source for agricultural products1a.
Thailand also has an abundant supply of low-skilled labor with high participation rates in the workforce 86% for males and 67% for females in 1995. At the same time, the country…… [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]
This savings on fuel has also given Southwest more funds to invest in programs to reduce turn-around time of their jets between flights .
Southwest Airline's Internal Weaknesses
As with any company the size of Southwest, they have several weaknesses, with the most significant being their heavy dependence only on passenger traffic as their primary source of revenue. Despite efforts to move into logistics and supply chain services, the company is still struggling to gain significant success in more profitable business services markets (Kumar, Johnson, Lai, 2009).
Despite having an employee base that has the lowest turnover and highest levels of morale, Southwest also has one of the most rapidly declining sales-per-employee revenue levels for U.S.-based airlines (Kumar, Johnson, Lai, 2009). One of the factors that contribute to this is the fact that Southwest has more ground crew members than other airlines, an investment the company makes to attain the…… [Read More]
, 2008, p. 83). In addition, softwae enginees have also ceated a new flight scheduling model fo Delta Ailines and U.S. Aiways and othe eseaches ae examining ways to use existing aispace moe efficiently though othe softwae solutions (Hasan & Hammad, 2010).
Flight scheduled was shown to be faught with oppotunities fo delays, including aivals and depatues, en oute congestion, en oute sevee weathe, and aipot weathe, and unexpected eventualities in any of these aeas can ceate significant delays and flight cancellations. The eseach was absolutely consistent in showing that such flight delays ae costly to both passenges and ai caies alike, but the eseach also showed that even the most sophisticated softwae solutions cannot ovecome aipot congestion caused by ai caies scheduling thei flights without egad fo the impact of these decisions on thei domestic and intenational competition. In the final analysis, all types of tavel have thei…… [Read More]
Initially, the Home Depot strove to turn its flagging profits and image around through product innovation, although it has never been as rigorous in its self-examination as Toyota. Still, after expanding to the point that industry analysts worried that it had overextended itself, and after the more female-friendly Lowes stores with their superior store layout threatened its dominance, the Home Depot "sanded down its rougher product edges a little to make itself much more appealing to a broader consumer demographic," including women (Casey, 2004, p.1). However, the Home Depot's success over competitors like Lowes has not been nearly as complete as Toyota's dominance over Detroit and while Toyota enjoys status as the most successful and respected car company in America, the Home Depot's ability to survive at the top is far more uncertain. Initially, the Home Depot focused more on product reform, rather than changing its company structure. To keep…… [Read More]
According to IATA, freight within Asia Pacific, between Asia Pacific and North America and between Asia Pacific and Europe will account for 57% of the 36 million tonnes of international air freight tonnes in 2011, up from 55% in 2006. The majority of this growth will be from the outbound leg from Asia Pacific ("2008 Annual Report - Air Freight: Carriers Alter Course")."
Overall the article characterizes airfreight as an aspect of the industry that will continue to grow in spite of the fuel cost and economic slow down that seems to have negatively impacted the airline industry. The growth of economies such as China and India seems to contribute to the increased profitability of the air freight segment of the industry. It seems that the growth in air freight will continue well into the future.
Week 7-Article Critique
Issues associated with traffic flow, have been at the forefront of…… [Read More]
However, during that time, the car sales industry was experiencing a recession and Virgin Cars was caught up in the midst of this recession. Therefore, even though through franchise agreements with manufacturers they could stock many cars without paying for them, car sales slumped considerably thus the company was not able to turn a profit.
Among the actions that could have been taken by Virgin Cars to make it successful was taking time to design the business plan and site their stores in order to make sure they gain the most competitive advantage. Secondly, by researching the car sales industry and profile the market before starting the business. By so doing, they would have been able to set more realistic expectations for car sales and device strategies to improve sales despite the recession.
Diversification as a strategy for business growth usually gives rise to successful companies. The strategy of…… [Read More]
Examining U.S. Airways it is apparent that the organization does not have superior profits to other airlines; the 10-k for 2012 showed a net profit of 4.61% to 2012, while the firm has a better profit margin compared to some other airlines, it is lower than some other airlines, including American Airlines and Southwest (Yahoo Finance, 2013). As it is not have a superior profit margin the company is not a firm with a cost advantage. Therefore, this leaves the competitive advantage of differentiation.
Examining the organization in order to identify ways in which the service is different from competitors indicates that the service levels in the firm are not a source of differentiation. In 2007 in a consumer report U.S. Airways was ranked as being the worst for the customer service that was provided, where it gained only 5/30 marks of food, 10/30 marks the comfort and…… [Read More]
Sometime the debtor is able to successfully reduce its liability and returns to profitability but quite often it returns to seek the court's protection again and sometime the end result is liquidation.
Under Chapter 11 protections, the debtor gets an automatic protection from all creditors. The unsecured creditors cannot lay a claim on assets and secured creditors are also prevented from foreclosing on their collateral. A Chapter-11 company also gets the advantage of discarding or renegotiating union agreements, ability to freeze or cut wages and benefits and restructures its staffing requirement. Retirement and pension plans can also be reviewed or the company can transfer its pension obligations to the Federal Pension enefit Guaranty Corporation.
The reorganization is carried out by the bankruptcy and the court appointed trustee. The trustee appoints committee(s) to represent the creditor's interests and work out a plan for reorganization of the company. The reorganization plan must…… [Read More]
Description of high/low marketing strategy
The marketing strategy of choice, however, is simply to accentuate low costs by cutting frills and eliminating hub-based systems in favor of short nonstop hops for even the largest national carriers. This is the model followed by such successful low-cost carriers as Jet lue and Southwest Airlines.
These airlines are able to go up against giants like United and American by slashing fares, marketing their no-frills image and flying short distances and choosing cheaper, slightly out of the way airports.
For instance, Jet lue flies not to Miami but to Ft. Lauderdale and even though Delta might fly to Miami, Jet lue will still get the fare because of its lower price and no-frills marketing strategy.
Airlines have to realize that this is a price-sensitive market and only spend marketing dollars on advertising low-cost fares and the fact that fliers are not being charged for…… [Read More]
Customer Value Funnel Approach. The reference appends four sources in APA format.
The "customer value funnel approach" (p. 153) is a highly significant implement for clearly comprehending and evaluating business mechanisms and other marketing-related critical situations. esides a priceless strategic marketing framework, this approach focuses on the satisfaction of customers, the main marketing target of various giants in the business industry to reap the benefits of high productivity and massive volume due to broad clientele. As Stanley Slater states "As marketers, we should be committed to the proposition that the creation of customer value must be the reason for the firm's existence and certainly for its success" (p. 153).
Hence for effective business practices and performance, customer values play a vital role and therefore all focal organizations must take into consideration all the four levels of the Customer Value Funnel approach just like Southwest Airline did when it began…… [Read More]
In addition, there are also numerous vehicles that are required for running the airport facilities such as baggage transportation, fuels transportation and maintenance and upkeep of the runways and surrounding lands require trucks and utility vehicles. The airport has switched, wherever possible, to natural gas or electricity run vehicles.
There are, currently, 32 passenger airlines and 19 cargo airlines that use the Hartsfield-Jackson airport. The 2006 statistics as posted by the airport authorities on the official website offer the following details.
Passengers Cargo in Metro Tons
Freight/Express/Mail Aircraft Operations
Landings and Takeoffs
The airport is the largest employer in the State of Georgia, with a payroll of $2.4 billion. Approximately 56,000 individuals are employed by the airport either directly or through contracts agencies. It is estimated that the direct and indirect impact of the airport is $5.6 billion. In turn, "the annual, regional economic impact…… [Read More]
TEMPOAY FLIGHT ESTICTIONS EGULATION: IS IT CONSTITUTIONAL?
Condition of airline industry after Sept.
TFs and general aviation
TFs without information
TFs and business at busy airports
TFs and young pilots
TFs: an ineffective measure
Temporary flight restrictions (TF) are considered unconstitutional by many quarters because they are seriously hurting economic conditions of the United States aviation. But speaking from legal point-of-view, we cannot declare any action taken for security reasons as unconstitutional. This is because the federal government has Congress's permission to take appropriate measures to ensure security of the country, its landmarks, general public and important public figures such as the President and Vice president. But when these actions cross the limits of justice and start interfering with smooth operations of any industry, a petition can be filed against them in U.S. courts to determine the legality of those actions. No such action has so far been…… [Read More]
"According to T-100 Domestic Market, the top seven airlines in the United States by domestic boarding in a recent year were Southwest Airlines with 81.1 million, Delta Airlines with 79.4 million, American Airlines with 72.6 million, United Airlines with 56.3 million, Northwest Airlines with 43.3 million, US Airways with 37.8 million, and Continental Airlines with 31.5 million. Using Excel, construct a pie chart and a bar graph to depict this information". ( Kaplan University, 2016 p 1).
Department of the Interior releases figures on mineral production. The following are the 15 leading states in nonfuel mineral production in the United States in 2008". ( Kaplan University, 2016 p 2).
1,923099…… [Read More]
David Kearns is often said to have been such a leader, capable of gaining trust and also making the company change on a global scale to focus first on quality and customers instead of its own, often inwards-centric agendas (Deckert, 2011).
Kearns began a practice of having senior managers personally take phone calls from customers with problems. Try calling the president of an organization with one of your concerns about a product or issue you have with the company. eport what happened on the phone call. (Good luck).
I recently tried to call the President and CEO of Delta Airlines and was routed first to their automated voice response customer service line. After about fifteen minutes on hold I was connected to an agent who said their CEO's office is confidential and cannot be reached from an outside line. He directed me to their Public elations Department. I called their…… [Read More]
(Kanki, 2010, pp. 452-460) ("Air Crew Training Manual," 2007)
In 2006, the guidelines were revised even further with the introduction of Air Crew Coordination Training Enhanced (ACT-E). Under this approach all aviators are given this kind of training from the start of the program. Once they are assigned to a squadron, is when they will have this training further augmented. The way that this takes place, they will have an ACT-E qualified instructor who is focused on their flight checks and procedures. A few of the most notable include: an annual instrument check and the annual flight proficiency check. (Kanki, 2010, pp. 452-460) ("Air Crew Training Manual," 2007)
Moreover, instructors must go through an intensive two and half day training program. This is when there will be a focus on a number of concepts to include: how to access training media, providing this kind of assistance to air / ground…… [Read More]
Countermeasures After 911
Without a doubt, September 11th changed a tremendous amount about how we live and about how safe (and unsafe) we feel. These attacks caused enormous changes and countermeasures regarding the way we travel and the way we interact with one another and the way in which we use technology. However, ever since the ten-year anniversary of 9/11 has come and gone, it begs to determine just how much we've changed in the way that we live, examining specific areas of technology, commerce and communication. Consider the following: "In spite of a doubling of the intelligence budget since 2001 to $80 billion, the creation or reorganizing of some 263 government organizations, and the formation of the $50 billion Department of Homeland Security, the government has largely fallen short, the new report notes. The report states that while some progress has been made, 'some major September 11 Commission…… [Read More]
While this paper focuses on process-centric improvements to McCarran, the research completed for this paper highlights the critical need for an all-encompassing IT architecture that allows for data to support both processes as thoroughly as possible.
Figure 3: Combining the Check-in and retailing processes for greater efficiency
Luggage and Baggage Process Improvements
Another major area of process improvement McCarran needed to focus on was luggage and baggage handling. The airport had been losing between 10% to 30% of all bags, leading to high levels of customer dissatisfaction and many manual processes attempting to compensate for the confusion around this broken process. Relying on Radio Frequency Identification Devices (RFID) McCarran piloted several programs for baggage tagging, management and retrieval using the RFID standard. In the retail industry, Wal-Mart has been a pioneer in establishing higher levels of performance in logistics and supply chain performance using RFID, and McCarran's many efforts have…… [Read More]
Douglas Rushkoff's Frontline / PBS documentary "The Persuaders" offers a history of advertising and a critical exploration of the evolution of advertising in the twentieth century, along with techniques used in corporate marketing, concepts such as "brand loyalty," and the effects that advertising has on the public. The first portion of "The Persuaders" concentrates on the "clutter" that is caused by advertising, asking us to consider the way in which products are now no longer advertised by a description of their function or merits, but on the basis of image. This concludes with a long examination of the launch of a new "brand," a low-cost air carrier called "Song" which is a subsidiary of Delta Airlines. We watch as Delta identifies the female consumer as their target audience, and then attempts to construct an "identity" for Song which will invite women to purchase tickets to be part of…… [Read More]
Companies including Salesforce.com are very interested in partnering with Facebook to gain access to these data sets to further strengthen their applications as well.
The third significant area of potential growth for Facebook is in the area of entertainment. The statistics and analysis of interest in Facebook as an entertainment platform shows high levels of potential adoption and use over time with the convenience over mobile devices further driving demand (Zhang, 2010). The development of entirely new forms of entertainment based on activities members are tagged in pictures of also has significant potential for product placement which is an entirely new area global brands are looking into right now (Smith, Kidder, 2010). Facebook Already has many Fan pages for individual movies, entertainment events and sports teams. In the future the ability to measure these marketing efforts is going to make fine-tuning entertainment options all the more effective.
Facebook is…… [Read More]
outsourcing from an employee and corporate perspective in an attempt to gain insight into the pros and cons of the outsourcing issue. The researcher proposes that outsourcing is morally and ethically an objectionable practice, that results in little benefit to the company and much harm to the employees it affects. A formal review of the literature available with regard to outsourcing is analyzed, and the case against outsourcing is made. The researcher shows how outsourcing impacts workers in a negative manner, goes against the moral and ethical standards inherent in business and proves that outsourcing will ultimately result in dissatisfaction for corporations in the long-term.
From a moral and ethical standpoint, outsourcing is wrong and has negative consequences on both employees and the productivity and efficiency of corporations in the long-term. From a practical standpoint, corporations that rush to outsource job functions realize few returns on their investment and…… [Read More]
He also knew that Time Warner Cable has at times been known to zap televisions with too much voltage and a few had been damaged. This had actually been written about in the local press. In short, what made this situation unique was the knowledge the sales person had of the local market and the potential hazards to such a large investment in entertainment.
Second, the cross-sell strategies (Reinartz, Thomas, ascoul, 2008) at est uy also centered on making the flat screen television more integrated into my existing stereo system as well. As there is already an amplifier, receiver and a series of speakers in the room where the television sis going, the est uy salesman was able to draw and define an approach for me to integrate all the components together. At first I didn't believe him yet after I went back home and looked at the connectors on…… [Read More]