...another of Porter's forces. Moreover, a lot of airlines such as Qatar Airways and Emirates have a brand name which they have to defend so they compete in doing so. The airlines are continually competing against each other in terms of prices, technology, in-flight entertainment, customer services and many more areas. The net result of this competition between companies is an overall slow market growth rate. One of the forces that Porter describes is Entry into the industry. In the world today, the airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The biggest for this is the cost of entry. The airline industry is one of the most expensive industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands. On the other hand, a newcomer could enter this saturated market easier with a completely new concept and/or technology. This was the case when Southwest entered the airline industry, with the new concept of budget or low cost...
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...Individual Reflection Paper Before beginning our analysis of the airline industry, I had made some assumptions based solely on my experience as a customer. Some of which were verified but others turned out to be false. Seeing that there are minimal competitors, I assumed that it would be a difficult market to enter which was verified in our study showing the airline industry is an oligopoly. Another pre-conceived notion about the industry that proved to be correct was how fuel cost drove airfare and fee pricing. As fuel cost increased, so did airfare along with the creation of more ancillary fees for things such as baggage or roomier seats. I had also assumed that new successful entrants would be attacked in a way that would cause them to go out of business. In reality, they are targeted but for acquisition reasons which was a surprise to me. I found the percentage of the workforce employed to be particularly interesting along with the schooling necessary to obtain each position. The interesting aspect is that every group in the workforce does not require a degree from a traditional university. All training necessary for a career within the airline industry is specific to that role and is not easily transferrable over to other career paths. This makes me think that many individuals have decided before graduating high school that they will pursue a career in this industry since the traditional university does little to help. Once they have started at a local university,...
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...LONG DURATION FIGHTER OPERATIONS WITH AIR-TO-AIR REFUELLING AND ITS AERO-MEDICAL ASPECTS INTRODUCTION 1. Air-to-Air refuelling ops are those which involve the transfer of fuel from one ac to another in flight. This extends the range, enables fighters to carry increased payload, increases the time on station and affords far greater flexibility in employment of aircraft. Air-to-Air refuelling can be used to enhance the capabilities of virtually all types of aircraft. The IAF has recently acquired air-to-air refuelling capability with the induction of IL-78 Flight Refuelling Aircraft (FRA) in its inventory. 2. The induction of the FRA would result in a considerable increase in the duration of fighter flights. Flights of fighter aircraft, which were earlier restricted to approx. 2 ½ to 3 hours, could now increase to 7 to 8 hours or even longer. Such long duration flights pose certain physiological difficulties and problems for fighter pilots of the IAF, who have so far not been exposed to such operations. Certain human frailties and physiological factors involved in these long duration fighter operations need to be understood by our fighter aircrew and they need to train to address the peculiarities arising thereof. AIM 3. The aim of this paper is to identify the aero-medical aspects involved in long duration fighter operations resulting from air-to-air refuelling and suggest remedies for the same. It would also attempt to suggest modifications on the M-2000...
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...Definition of pricing strategies is the element of a firm’s decision-making concerned with the setting of process that will attract the target market and allow profit objectives to be met. Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passengers’ airline through continued improvements and expanded offerings of its low-fares services. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. A good pricing strategies had help Ryanair to achieve the objective and aims. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight with higher fares charges on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s tight cost control was the backbone of its low-price strategy. As a result of this cost focus, Ryanair had by far the lowest costs in Europe, about 40% lower than its closest competitors. One of the elements of Ryanair’s cost-control...
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...Economic downturn and contingency plans * Competition from Airbus that was being subsidized by the govt. * Opportunities * Acquisition of Rockwell and merger with McDonnell Douglas. * Lean manufacturing helped Boeing “greatly reduced out-of-sequence work and parts shortages.” * New technology on 737 that was too advanced for customers. 2. What is the e-Enabled Advantage? How did it link to the company’s strategy? * e-Enabled Advantage is an IT service that Boeing can place into aircrafts that will help airlines collect and analyze data surrounding the aircraft’s maintenance, flight operations, and passenger needs. * Designed to “help airlines cut costs, improve dispatch reliability, reduce delays and cancellations, improve passenger service, enhance aviation security, and provide real-time situational awareness…” (Pg. 199). * Service, not a tangible product. (Pg. 199). * Allows the aircraft to be integrated with airline ground systems. * “…it’s a factory that is ‘unplugged’ from the airline while flying…depriving airlines of valuable information and data that could be used to improve efficiency and safety.” (Pg. 201). * Company’s strategy was shifted from short-term management to long-term value planning. (Pg. 201). * Shifted the company from focusing on providing a tangible product to providing services that was “about improving the performance of the people in the airline.” (Pg. 204)...
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...To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd By Satyendra Shukla 11P224 Management Development Institute Gurgaon 122 001 May, 2012 To analyze the Indian Commercial Aerospace market for Cobham India Pvt. Ltd By Satyendra Shukla Under the guidance of Mr. Lee Griffiths Director India Cobham India Pvt. Ltd. Management Development Institute Gurgaon 122 001 May, 2012 Executive Summary The project aims at to analyze the Indian Aerospace Industry and try to find out through secondary research the growth prospective of the same. Cobham has many capabilities that could be exploited to supply equipments and spares for the MRO (maintenance, repair and overhaul) industry in India. So we used the various reports and predictions available at the websites of Airport Authority of India, Directorate General of Civil Aviation, Ministry of Civil Aviation and websites of various airlines and MRO companies to understand the market dynamics. We came across various difficulties faced by them and also saw various opportunities lurking round the corner. We tried to estimate the fleet size of various airlines and the expected growth in next five years. Also the focus was given on the Non-Scheduled operators as their numbers is rising at a lightening pace. We also had the projections made by Ministry of civil aviation about the growth of passenger volumes in the future, and all the future growths...
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...A1. Airbus is interested in building the A3XX because it did not have any large aircraft to compete with 747-XXX airplanes of Boing. Boing with its 747-xxx aircraft had the monopoly position in very large aircraft market; therefore, Airbus with the building of A3XX wanted to enter the very karge aircraft market. From the other side Airbus was of the beleif that very growing economies would play major role in creating high demand for the VLA in future. One of the other reason of Airbus interest in building A3XX was the effective revenue which could be acheived through A3XX. VLA had a better operating economy over long distanations. The operating cost for the VLA was only 12% higher in compare to 747-xxx airplane but it provided 35% more space. A3XX new design and its 4 engines provides saver flights over long distances. Q2. How many aircraft does Airbus need to sell in order to break even on the investment? Hint: consider all capital providers as a single entity and calculate the break even return to them collectively. To calculate the break-even number of planes calculate the present value of a growing perpetuity if cash flows from plane sales beginning in 2008. Please assume an equity risk premium of 6% in your analysis. A2. Q3. What is the total demand for VLA aircraft. Analyze the sensitivity of demand to small changes in assumptions regarding growth, conversion rates and market share. A3. Q4. How should Boeing respond to...
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...Strategy In this report, it uses PEST analysis to analyse easyJet's global strategic, it related to political, economic, social and technology aspects. Firstly, in the political aspect for easyJet, its opportunities are government allowed it to purchase new aircrafts, and the government may guidance or assistance to easyJet to expand its business. In addition, the relationship between European countries is the element that influence easyJet's business. A good relationship makes EU politically stable, and that helps the economic growth of easyJet. However, along with the changes in political, that also bring threat to easyJet. Such as government made a strict carbon emission limits to detect airlines. And due to this policy, airlines have to face the fines that from the Environment Agency. In July 2013, easyJet made the agreement with Airbus that the shareholders of easyJet they purchase 35 current generation A320 aircraft and all the aircrafts will deliver to easyJet between 2015 to 2017, and 100 new generation A320neo aircrafts will deliver to easyJet between 2017 to 2022. (Essay UK, 2013) Secondly, in the economic aspect, even though the global economy is recession, but easyJet's profit is increasing, it able to offset the increasing fuel cost. And there are two reasons of easyJet can increasing its profit. (1) According to the global economy recession, people are more and more sensitive in price for their consumption, they may pay more attention to find out the most cheaper...
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...ATP required 1,500 hours of total flight time and that the holder of an ATP be at least 23 years of age. Within three years of the passage of the bill The Air Transport pilot certificate (ATP) required for both the captain and the first pilot officer positions be within the three years required by federal Aviation Regulation part 121.The significance of this proposed requirement will play have an important impact on airline hiring practices and all flight training including collegiate training. Many rules and regulations were included in the Extension Act of 2010, such as a Pilots Records Database to provide airlines with fast, electronic access to a pilot's comprehensive record. Information in the database will include: pilot licenses, aircraft ratings, check rides, notices of disapproval, other flight proficiency tests, and State motor vehicle driving records. A Truth in Advertising was also included Mandating Internet websites that sell airline tickets disclose to the purchaser on the first page of the website the air carrier that operates each segment of the flight. Chapter 2 LITERATURE REVIEW Flight 3407, operated by Colgan Air, Inc. became the deadliest major Aviation...
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...Aircraft maintenance is a huge part of any operation dealing with aircraft and flying, whether it is military or commercial flying. On average there is between ten and fifteen man- hours of maintenance for each hour of flight time. Strict procedures and guidelines are set in place, and strictly enforced to ensure the safety of all involved, maintainers, aircrews and the aircraft. Aircraft maintenance is so important and throughout the years it has been becoming more efficient and reliable with more policies put in place. Aircraft maintainers are highly skilled technicians that are required to go through specific training, which is required by the Federal Aviation Administration. For most commercial aircraft maintenance jobs it is required for each person to hold a mechanic’s certificate, also know as an airframe and power plant license. To obtain one of the licenses you must have at least eighteen months of either power plant or airframe practical experience, or at least thirty months working on each at the same time. Another acceptable requirement to work in the maintenance field is you could graduate from one of many approved maintenance technician schools such as Embry Riddle Aeronautical University. Whether the technician goes to college to get their training, or received hands on experienced and passes a number of tests we can be confident in their knowledge. Maintenance departments are a huge part of any flying organization. They are responsible for scheduled and unscheduled...
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...THE e-ENABLED AIRLINE, AIRPLANE, FLIGHT DECK, CABIN COMMERCIAL AVIATION Commercial Airplanes Aviation Services P.O. Box 3707, MC 21-85 Seattle, WA 98124-2207 www.boeing.com/commercial/aviationservices SERVICES The e-Enabled Advantage Phone: 206-766-1160 Fax: 206-766-1720 E-mail: e-enabled@boeing.com www.boeing.com/commercial/ams | A V IE N - C N AS ELR V I C E SV A N T A M E D I F I C A T I O N TH Oe IE S B ED AD AND GO Printed in U.S.A. 404854 06/03 COMMERCIAL AVIATION SERVICES | T H E e - E N A B L E D A D VA N TA G E EXPERIENCE THE POWER OF N E T W O R K E D O P E R AT I O N S . e-Enabled Advantage A VISION OF THE FUTURE NETWORKED ENVIRONMENT In the not-too-distant future, airlines will routinely invoke the power of integrated information and communications systems to reach new pinnacles of operational efficiency and market presence. Boeing calls it the e-Enabled Advantage. We’re coordinating the expertise of our entire company to give the airline industry a future in which people, airplanes, assets, information systems, knowledge applications, and decision support tools work together seamlessly. The Jeppesen Electronic Flight Bag, SBS International Crew Scheduling and Management software, Connexion by BoeingSM, and Boeing Airplane Health Management signal the dawn of a new age, when airborne and ground-based operations are linked in real time to enable people to achieve the extraordinary every day. Unprecedented enterprise...
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...Boeing Commercial Aircraft: Comeback? Week 1 Case Analysis Matt Craig There are a few ways that Boeing and Airbus can cooperate. They cannot cooperate with each other on design and other aspects that one company uses to stand out from the other but when it can offer an equal benefit for both companies. For example they may want to both look into lobbying together since they both will receive the same advantages and disadvantages from legislation that will be passed or repealed. Whether legislation affects fuel mileage or a safety measure, they both have to abide by the laws. They would either both have to lobby separately and spend more money than if they came together and lobbied together. They also have to do this all over the world since different governments can make different laws that affect Boeing and Airbus. Another area that both Boeing and Airbus can cooperate on is using alternative fuels like bio fuels that may cost less or be more efficient. This would have to be wide spread for both companies since they would need this fuel to be offered at airports. If they come up with a new type of fuel that can make plans run better both companies get the benefit of have more fuel efficient planes or at least it will cost less for them to fuel a plane up. The third way that both Boeing and Airbus can work together is on safety. They can both improve safety for the entire industry. This benefits both companies since no one wants to see a plane crash. When the planes...
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...Porter’s Five Forces Analysis for Airline Industry Threat of entry The government imposes quite lot restrictions on the entrance of the airline industry. What’s more, the high cost and high early stages investment capital for purchasing airplanes are barriers of entry. Threat of substitutes The most threatening substitutes are traveling by trains and cars. Because of the high price of taking planes, many people choose to travel by trains or cars, especially short-distance trip. But it takes a long time for people to take trains or cars, so people tend to choose air when they will experience long-distance trip or when they want to save time. Therefore, the substitutes influence the industry a lot. Threat of powerful suppliers The government also imposes quite lot restrictions on suppliers. Therefore, there are not many companies have the rights to provide products for airline industry. Airline companies have few choices about suppliers, so the suppliers’ bargaining power is very strong. Threat of powerful buyers At most time, when people decided to travel by air, they do not have many choices, and it is very difficult for the buyers to unite to buy services. When sellers gives out the service standards and price, buyers have nothing to do but accept it. So the buyers’ bargaining power is quite weak. Threat of rivalry There are only several airlines in the market. In spite of most of them provide similar services, they share some differences in air routes. So, the threat...
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...Airlines Safety Program SFTY 345 Embry-Riddle Aeronautial University REVIEW / REVISION RECORD REVISION NUMBER | EFFECTIVE DATE | ACTION TO BE TAKEN | POSTED BY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | TABLE OF CONTENTS 1. STATEMENT OF POLICY 2. ORGANIZATION 3. AUTHORITY AND RESPONSIBILITY 4. REPORTING OF ACCIDENTS, INCIDENTS AND HAZARDS 5. DISTRIBUTION OF AVIATION SAFETY INFORMATION 6. AVIATION SAFETY COMMITTEES 7. AVIATION SAFETY AUDITS 8. AVIATION SAFETY TRAINING 9. AIRCRAFT ACCIDENT INVESTIGATION 10. AVIATION SAFETY ANALYSIS 11. REVIEW AND REVISION 1. STATEMENT OF POLICY The Sky High Airlines considers accident prevention to provide a safe working environment and safety transportation to our employees and passengers as a prime objective in all department operations. Sky High Airlines also intends to provide the public safety of transportation to the nation. In pursuit of these goals, Sky High Airlines will use safety strategy to maintain the highest standard of an active aviation safety program and all department individual are expected to be 100 percent participate in the program with responsibility and exist in critical thinking, planning, and actions of others. All employees are expected...
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...Project 1 - MANAGEMENT DISCUSSION AND ANALYSIS INFORMATION- MD&A Revenues in 2011 increased by $4,429 million or 7% compared with 2010. Commercial Airplanes revenues increased by $4,337 million due to higher new airplane deliveries, including the impact of entry into service of the 787-8 and 747-8 Freighter, favorable new airplane delivery mix and higher commercial aviation services revenues. BDS revenues increased by $33 million primarily due to higher revenues in the Boeing Military Aircraft (BMA) and Global Services & Support (GS&S) segments, partially offset by lower revenues in the Network & Space Systems (N&SS) segment. Revenues in 2010 decreased by $3,975 million or 6% compared with 2009. Commercial Airplanes revenues decreased by $2,217 million due to lower 777 deliveries primarily resulting from a production rate change from 7 to 5 per month beginning in June 2010 and no deliveries on the 747 program due to the transition from the 747-400 to the 747-8. These were partially offset by increases in commercial aviation services business. BDS revenues decreased by $1,718 million primarily due to lower revenues in the N&SS segment. The increase in contractual backlog during 2011 and 2010 was due to commercial airplane orders in excess of deliveries and changes in projected revenue escalation for undelivered commercial airplanes. The decrease in unobligated backlog during 2011 is due to decreases at BDS of $3,135 million compared with 2010 primarily...
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