117+ documents containing “spirit airlines”.
Taking into consideration Spirit Airline’s current financial position and operational factors, a specific cost-cutting investment will be proposed in this paper. It is important to note, from the onset, that to remain relevant in an increasingly competitive business environment, entities must continuously embrace approaches that not only enhance their efficiency, but also reduce their costs. This is more so the case in the Airline business where competition for passengers continues to be tough – with entities adopting various strategies to win over the said passengers.
An ultra-low-cost carrier, Spirit Airlines remains one of America’s most competitive commercial airlines. To guarantee its place on this front, the airline ought to further cut its costs. This would effectively cement the airline’s position as the cost leader in the industry. In the words of Beers (2018), “the major expenses that affect companies in the airline industry are labor and fuel costs.” In that regard,….
IPO of the company 'Spirit Airlines, Inc.'
Identify the company and its industry
The industry chosen for the analysis is the aviation industry, particularly a niche called the 'The ultra low fare air carrier'. This is a peculiar type of niche that other airlines especially the giants cannot enter into. From the time of it's founding the company under analysis -- Spirit Airlines has followed the principle of operating at low cost and keeping the passenger cost to the minimum which has been its major strategy. The company overview for Spirit Airlines, Inc. shows that by June 30, 2010, it operated a fleet of thirty one Airbus narrow-body aircrafts. The company was formerly known as Charter One and the new name Spirit Airlines, Inc. was assumed in 1992. It is based in Miramar, Florida. It has about two thousand employees and the CEO is Mr. B. Ben Baldanza. The company was….
Business Week. (2011) "Company overview: Spirit Airlines" Business Week,
Retrieved 2 June, 2011 from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=831552
Bridge Street News. (2011) "Ultra-low-cost carrier Spirit Airlines launches seasonal leisure routes" Retrieved 2 June, 2011 from http://www.bridgestreet.com/News.aspx?News=Ultra-low-cost-carrier-Spirit-Airlines-launches-seasonal-leisure-routes
Flouris, Triant G; Oswald, Sharon L. (2006) "Designing and executing strategy in aviation management" Ashgate Publishing.
Based on internal and external assessment, this paper provides strategic recommendations for Spirit Airlines, Inc. Flying to more than 50 destinations in the Americas and with more than 100 aircrafts in its fleet, Spirit Airlines is one of the largest ultra-low cost airlines in the U.S. The paper is organized as follows. First, the two major issues or challenges facing the company are identified. Next, strategic options for addressing the issues are considered, clearly highlighting the advantages and disadvantages of each option. Based on the evaluation, recommendations for the two most viable options are presented. Finally, a brief plan for implementing the recommended options is provided.
Major Issues and Challenges
Though Spirit Airlines enjoys a significant cost advantage, it grapples with poor customer satisfaction. Indeed, the airline has been ranked as the worst airline in the U.S. in terms of pleasing customers. Customer complaints against the airline stem from a wide….
SOUTHWEST AILINES Situation Analysis Presentation: Southwest Airlines1. Strategic Profile and Case Analysis PurposeSouthwest Airlines Inc. was founded under the name Air Southwest in 1960 by Herb Kelleher. The carrier changed its name to Southwest Airlines in 1971 and flew its first plane that year with six round trips between Houston and Dallas. The air carrier subscribes to the mission of connecting people to whats important in their lives through low-cost, reliable, and friendly air travel (Southwest Inc., 2022). Currently, Southwest Airlines serves 120 destinations scattered across 11 countries and is the second-largest air carrier in the US by market share (Southwest Inc., 2022). The airlines greatest source of competitive advantage is its low-cost business model, which helps it build brand loyalty. The airline industry was hit hard by the Covid19 pandemic. The purpose of this case analysis is to assess Southwest Airlines and the wider airline industrys performance in the….
References Department of Trade (2022). Airline ticket refunds and consumer protections. Department of Transportation. https://www.regulations.gov/document/DOT-OST-2022-0089-0524 Holzhauer, B. (2022). Airline ticket prices are up 25%, outpacing inflation — here are the ways you can still save. CNBC. https://www.cnbc.com/select/airline-ticket-prices-are-up-25-percent-why-and-how-to-save/ Hughes, J. (2022). Southwest Airlines competitor analysis. Business Chronicler. https://businesschronicler.com/competitors/southwest-airlines-competitors-analysis/ US Department of State (2017). Open Skies Agreements. US Department of State. https://2009-2017.state.gov/e/eb/tra/ata/index.htmSouthwest Airlines (2021). 2021 Annual shareholders report. Southwest Airlines. https://www.southwestairlinesinvestorrelations.com/~/media/Files/S/Southwest-IR/LUV_2021_Annual%20Report.pdf https://www.southwest.com/about-southwest/
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 paper will….
CAPA. (2015). Prospects for Indianapolis International Airport look promising after good 2014 passenger growth. Retrieved 21 April 2016 from: http://centreforaviation.com/analysis/prospects-for-indianapolis-international-airport-look-promising-after-good-2014-passenger-growth-220204
Cosmas, A., Martini, B. (2007). UPS and FedEx Air Hubs: Comparing Louisville and Memphis Cargo Hub Operations.
FedEx Corporation. (2014). Annual Report. Retrieved from: http://investors.FedEx.com/files/doc_financials/annual/FedEx_2014_Annual_Report_v001_a00492.pdf
Hao, E. (2015). Overview of the Cargo Industry and Airports: A Case Study of Memphis International Airport. Retrieved 21 April 2016 from: https://www.wsiz.rzeszow.pl/pl/Uczelnia/kadra/klysenko/Documents/Case%20study%202.pdf
INTENAL ENVIONMENTAL ANALYSISUnited Airline Holdings: Internal Environmental AnalysisStrategic ole of Corporate Strengths/Weaknesses in the Internal Strategy Analysisa) Corporate-Level StrategiesIn basic terms, an enterprises corporate-level strategies refer to the approaches embraced by the top management in efforts to steer the entire organization towards success (Godfrey, 2015). Towards this end, they tend to have an impact on the entire organization. With this in mind, the corporate level strategies of United Airline Holdings could be conceptualized as all the organizational undertakings meant to further promote the entire companys competitive advantage in the airline industry. Strategies of this nature would also relate to the determination of the overall direction that the company takes going forward.With the worst effects of the COVID-19 pandemic now behind us, United Airline Holdings appears to be focused on stability. In the words of Brandoni (2018), stability strategy could come in handy when a company finds that it should continue….
ReferencesBrigham, E.F. & Houston, J.F. (2012). Fundamentals of Financial Management (7th ed.). Mason, OH: Cengage Learning. Amason, A. (2011). Strategic Management: From Theory to Practice. New York: Routledge.Brondoni, S.M. (2018). Competitive Business Management: A Global Perspective. Taylor & Francis. Godfrey, R. (2015). Strategic Management: A Critical Introduction. New York: Routledge.Josephs, L. (2022). United forecasts a 2022 profit as passengers return and pay more to fly. https://www.cnbc.com/2022/04/20/united-airlines-ual-1q-22-earnings.html Moyer, R.C., McGuigan, J.R. & Rao, R.P. (2012). Contemporary Financial Management (12th ed.). Mason, OH: Cengage Learning. Macro Trends (2022). United Airlines Holdings Inc.: Number of Employees 2010-2021. https://www.macrotrends.net/stocks/charts/UAL/united-airlines-holdings-inc/number-of-employeesUnited Airline Holdings (2022). Products. https://united.business/products United Airline Holdings (2022). Form 10-K. https://ir.united.com/static-files/f3ebd5cf-da93-4990-986a-a5b34bb59ccd(Chapter 5)
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 can employ….
Center for Aviation. (2014). Southwest Airlines SWOT: Financial strength is mainstay, but cost and culture challenges loom large. CAPA. Retrieved from: http://centreforaviation.com/analysis/southwest-airlines-swot-financial-strength-is-mainstay-but-cost-and-culture-challenges-loom-large-187714
Gulliver Business Travel. (2012). The secrets of Southwest's continued success. The Economist. Retrieved from: http://www.economist.com/blogs/gulliver/2012/06/southwest-airlines
Mind Tools. (2016). SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats. Retrieved from: https://www.mindtools.com/pages/article/newTMC_05.htm
Schmidt, A. (2015). Important Factors that Can Affect Southwest in the Future. Market Realist. Retrieved from: http://marketrealist.com/2015/07/important-factors-can-affect-southwest-future/
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….
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 factors such as environmental, economic,….
Gittell, Jody Hoffer. The Southwest Airlines Way Using the Power of Relationships to Achieve High Performance. New York: McGraw-Hill, 2003.
More City Pairs Await Southwest - Kelleher Says Opportunities Remain Using Airline's Formula." Aviation Week & Space Technology. 143. 6 (1995): 40.
A www.marketingmix.com.au / www.mcdonalds.com / www.bbc.co.uk
Southwest Airlines 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 success has been its top leadership's….
Aguinis, H. (2009). Performance Management. Upper Sadle River, NJ: Pearson Prentice Hall.
Bailey, J. (February 13, 2008). Southwest. Southwest Way. New York Times, Business.
Box, T.M. (2009). Southwest Airlines 2007. Journal of the International Academy of Case Studies Vol. 15, 21-27.
Erdogan, B. & . (2010). Erdogan, B., & Bauer, T. (2010). Organizational Behavior. Flat World Knowled Organizational Culture . Flat World Knowledge.
outhwest Airlines (WA) has been a strong growth company for the last 40 years mainly due to its focal point on cutting costs. outhwest Airlines (WA) follows the Cost Leadership trategy in terms of Porter's four generic strategies and is the epitome of Blue Ocean trategy in its simultaneous pursuit of differentiation and low cost (Kim & Mauborgne, 2009.
That WA is cost-focused is evident from Liang et al.'s (2009) analysis of strategies that a company uses to differentiate itself. A successful company stands out by its association in the public's mind, and WA certainly stands out. Rollin King and Herb Kelleher's objective was: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline" (The Rise of outhwest Airlines) and its name, instinctively associated….
Classic Airlines Case
Classic Airlines is going through a period that will shape the future of the company. The competitive landscape is evolving and operations and marketing have not kept pace meeting the needs of their target market. As a result some of their key stakeholders and loyal customers have been attracted to the services of competing airlines. This has had significant implications on the bottom line as the organization has been impacted by poor sales and decreased revenues. Additionally, the company has simultaneously had to deal with negative publicity, declining stock prices, as well as increasing prices for fuel which has affected the entire industry.
Classic Airline's executive management team has mandated that a fifteen percent cost reduction is vital to stabilize the position of the company and should be executed within the next eighteen months. To examine the current position of the company a nine step decision making tool was….
Richardson, A. (2011, October 10). Southwest Airlines Is Playing with Brand Fire. Retrieved from Havard Business Review: http://blogs.hbr.org/cs/2011/10/southwest_airlines_is_playing.html
Southwest. (2012). The mission of Southwest Airlines. Retrieved from Southwest: http://www.southwest.com/html/about-southwest/index.html
Stevenson, S. (2012, June 12). The Southwest Secrete. Retrieved from Slate: http://www.slate.com/articles/business/operations/2012/06/southwest_airlines_profitability_how_the_company_uses_operations_theory_to_fuel_its_success_.html
There are many examples of this throughout the company's history, all pointing to the fact that employees who have a strong sense of ownership and wiliness to sacrifice for the greater good. Southwest's ability to translate cultural values into financial performance while embracing, even attacking change, in their industry is what fuels their profitability. Through the worst recession in 40 years, Southwest has been able to generate positive eturn on Investment (OI), eturn on Assets (OA), and eturn on Equity (OE).
Sustaining and Strengthening the Culture Given Strategic Decisions Made
The case study shows that while Southwest excels with their culture from a purely customer service standpoint, their leadership and management of maintenance, repair, overhaul and support has been a weakness that in 2007 became a liability. Southwest had failed to create a culture of transparency and accountability to the point of whistle-blowing in its maintenance organizations. As a result Southwest….
Freiberg, K. And Freiberg, J. (1996), Nuts: Southwest Airlines' Crazy Recipe for Business and Personal Success, Broadway Books, New York, NY.
Ginger Hardage (2006). PROFILE: COMMUNICATING the SOUTHWEST WAY. Strategic Communication Management, 10(3), 4.
Thomas a. Kochan (2006). Taking the High Road. MIT Sloan Management Review, 47(4), 16-19.
Dawna L. Rhoades (2006). Growth, customer service and profitability Southwest style. Managing Service Quality, 16(5), 538-547.
That is primarily due to the spirit of teamwork the company instills on human workforce. Another reason for success in this regard is the maintenance of certain rules and principles followed by everyone: the CEO, Vice-Presidents, pilots, flight attendants, and receptionists. For example, flight attendants do not necessarily wait until people from a specific department come in and clean up the plane seats; they do the task on their own if they have to. Pilots start carrying bags if they see there is a need for that. They do not as, a general rule, avoid responsibility, which allows different parts of HR systems work together. SW also ensures teamwork that avoids conflicts between different parts by encouraging cross-departmental collaboration and training. For example, pilots participate in the recruitment process, helping to hire other pilots. SW developed a dynamic training program to ensure smooth HR management across different systems. New….
Classic Airlines Marketing Solution:
In addition to being the fifth largest airline company across the globe, Classic Airlines has a fleet of over three hundred and fifty jets that operate in approximately 240 cities with over two thousand daily scheduled flights. Since its inception about twenty-five years ago, the airline company has grown into an organization that consists of 32,000 workers. In the year 2006, the company not only made sales worth $8.7 billion but also gained a profit $10 million as a result of the bumper sales. egardless of these sales, Classic Airlines is not an exception to the challenges that existing airlines have encountered since 2007. Actually, despite making these abundant sales in 2006, the airline experienced a 10% decrease in its share prices because of the growing uncertainty about flying. This growing uncertainty did not only affect Classic Airlines but also affected the general stock prices of the….
Chase, J. (2009, October 13). Developing Problem Solutions for Organizations. Retrieved November 10, 2010, from http://www.associatedcontent.com/article/2213827/developing_problem_solutions_for_organizations.html?cat=35
Le, T. (2007, January 30). Problem Solution: Classic Airlines. Retrieved November 10, 2010,
"Problem Solution Paper for Classic Airlines (2)." (n.d.). DocShare.com. Retrieved November
Business - Applied Operations
Introduction Taking into consideration Spirit Airline’s current financial position and operational factors, a specific cost-cutting investment will be proposed in this paper. It is important to note, from the onset,…Read Full Paper ❯
IPO of the company 'Spirit Airlines, Inc.' Identify the company and its industry The industry chosen for the analysis is the aviation industry, particularly a niche called the 'The ultra…Read Full Paper ❯
Based on internal and external assessment, this paper provides strategic recommendations for Spirit Airlines, Inc. Flying to more than 50 destinations in the Americas and with more than 100…Read Full Paper ❯
Business - Management
SOUTHWEST AILINES Situation Analysis Presentation: Southwest Airlines1. Strategic Profile and Case Analysis PurposeSouthwest Airlines Inc. was founded under the name Air Southwest in 1960 by Herb Kelleher. The carrier…Read Full Paper ❯
Sports - College
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.…Read Full Paper ❯
INTENAL ENVIONMENTAL ANALYSISUnited Airline Holdings: Internal Environmental AnalysisStrategic ole of Corporate Strengths/Weaknesses in the Internal Strategy Analysisa) Corporate-Level StrategiesIn basic terms, an enterprises corporate-level strategies refer to the approaches…Read Full Paper ❯
Southwest Airlines 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…Read Full Paper ❯
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…Read Full Paper ❯
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…Read Full Paper ❯
Business - Management
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…Read Full Paper ❯
Business outhwest Airlines (WA) has been a strong growth company for the last 40 years mainly due to its focal point on cutting costs. outhwest Airlines (WA) follows the Cost…Read Full Paper ❯
Classic Airlines Case Classic Airlines is going through a period that will shape the future of the company. The competitive landscape is evolving and operations and marketing have not kept…Read Full Paper ❯
Business - Management
There are many examples of this throughout the company's history, all pointing to the fact that employees who have a strong sense of ownership and wiliness to sacrifice…Read Full Paper ❯
That is primarily due to the spirit of teamwork the company instills on human workforce. Another reason for success in this regard is the maintenance of certain rules…Read Full Paper ❯
Classic Airlines Marketing Solution: In addition to being the fifth largest airline company across the globe, Classic Airlines has a fleet of over three hundred and fifty jets that operate…Read Full Paper ❯