...1.1 Airline industry The airline industry is one of the fastest-changing industry sectors in the world today. That said, compared to other industries the airline industry has a relatively short history to look back at. While it is rather an impossible task to point to the exact date which could signal the starting line for the airline business, it could be said that the history of aviation in general started with the Wright brothers’ success in conducting powered air flights in 1903 (Sheehan & Oclott, 2003). A German general and aircraft manufacturer Count Zeppelin was the first business man to found an airline six years after the first manned flight by the Wright brothers. On the 16th...
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...JetBlue Case Study JetBlue is not the airline that everyone thinks of when they consider low cost airlines. Yet it stands as one of the more profitable airlines. This is due to a variety of factors, but it also faces some issues. The company has to adapt to the departure of the founding CEO. Depending on the organizational view of leadership that the firm has this could be problematic. If the view they take is external and most decisions are made based on market conditions, external environmental analysis, etc. this is not as much of an issue. Less demand and expectations rest on the CEO to be the force behind the entire company. If they take a romantic approach, however, then there could be more difficulty with the change. This would lead to more emphasis placed on the leader to run the company and possibly some hostility or excess pressure placed on whoever fills his shoes (Dess, Lumpkin, Eisner, Mcnamara, 2014). The firm has to have faith in the leaders of the organization regardless of the view of leadership. This leads to the new CEO having to inspire faith in his ability to lead the organization. Potentially a major operational challenge anytime that there is a shift in leadership and certainly one the JetBlue was forced to face. While they handle the leadership shift they must also acknowledge the changes in the segment to which they appeal. They have placed an emphasis on the economic segment and appealed to those who cannot afford to fly with the traditional...
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...Length Research Paper Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others. This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in Malaysia. 350 usable questionnaires were obtained from respondents in the two main airlines terminals in Kuala Lumpur. Exploratory factor analysis revealed seven brand satisfaction dimensions which are tangibles, price, core service, reputation, publicity, word-of-mouth, and employee. Generally, respondents were not satisfied with all brand dimensions of both airlines. The level of brand dissatisfaction is also higher for Malaysian Airlines compared with Air Asia. Air Asia was perceived better than Malaysian Airlines in price, publicity, and word-of-mouth. On the other hand, Malaysian Airlines was perceived better in tangibles, core service, reputation, and employee. The paper highlights some of its theoretical, managerial and marketing implications to the development of airline industry. Key words: Airlines, branding, satisfaction, Malaysia Airlines, Air Asia. INTRODUCTION The world airline industry has gone through a rollercoaster ride for the past few...
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...The Case Study of Eva Airways Core Competencies in Airline Industry | December 252012 | The idea of "core competences" is one of the most important business ideas currently shaping our world. This is one of the key ideas that lies behind the current wave of outsourcing, as businesses concentrate their efforts on things they do well and outsource as much as they can of everything else. Eva Airways core competencies covers excellent flight safety record, advanced flight equipment to enhance flight safety, fleet complete, network-intensive services, caring and meticulous service that includes their current and future customer service programs, human capital investment for providing excellent customer service, and professional management. With these excellent customer-oriented services, Eva Air proves that they are already world-class air carrier and robustly have an edge to compete in international market with the low-cost airline carrier, prestige airline carrier, and even the government-controlled carrier. We also believed that Eva Air’s customer-oriented services (core competencies) could sustain the growing or future demands in airline industry and can survive the toughness of the competition. The Case Study of Eva Airways Core Competencies in Airline Industry I. INTRODUCTION The airline industry exists in an intensely competitive market. Over the years, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore...
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...Comparison of 3 methodological approaches undertaken in 3 Research studies on Airline Industry Introduction In this research paper, methodological approaches of 3 different peer reviewed tourism journal articles from the journal “Tourism Management” have been compared. The first article is on the topic of changing gender representation in airline/aviation industry. This research study has identified the trends related to gender representation in airline industry have been discussed. In this article, the influence of different media such as contemporary electronic, celluloid and print has been discussed and the role of media in affecting life as well as career choices especially from the perspective of gender is conferred. According to the article, e-media imagery holds more power than ever before to influence life, especially career choices of a person. New generation especially now take their input from the imagery shown on the media in making their career decision and media has played an important role in helping women to gain more representation in careers that were previously dominant by the their male counterparts. According to the article, e-media imagery holds more power than ever before to influence life, especially career choices of a person. New generation especially now take their input from the imagery shown on the media in making their career decision and media has played an important role in helping women to gain more representation in careers that were...
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...STUDY OF THE SCENARIO OF INDIAN AVIATION INDUSTRY IN A SPAN OF FIVE YEARS AND THE RISE AND FALL OF KINGFISHER AIRLINES IN THOSE YEARS. Indian Aviation Industry It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to $ 51 billion by 2011, from $16.3 billion in 2005-06. Origin of Indian civil aviation industry India occupies an eminent position in the civil aviation sector with a large fleet of aircrafts. Estimates show that the domestic and international passenger traffic in India is growing tremendously PEST ANALYSIS – AIRLINE INDUSTRY Political Factors India’s political environment – Tension with Pakistan, Government’s inability to control issues (riots etc) September 11 th - huge drop in air traffic due to safety and security concerns Trade relations with other countries have to be good Economic Factors Recession- airlines are considered as a luxury High operation costs due to low demand resulted in laying off employees Social Factors People from varied income groups have to be catered Destination, kinds of food served have to be chosen carefully Technological Factors Use of Internet- online ticket booking, updated flight information & handling of customer complaints restructuring the existing airports to world class appeal ...
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...CHAPTER ONE INTRODUCTION 1.0 Introduction Air travel is in deed one of the largest and fast growing industries in the world. It is of utmost important importance to a number of industries for it facilitates economic growth, world trade, international investment and tourism. It is then because of this that the travel industry that the travel industry has increased its roles in the process of globalization that is occurring in all most all other countries.(the airline industry, 2009) In the past decade traveling by air has increased by 7% per year due to rising number of people who have engaged in either business or leisure travels. Out of the two more people tend to engage in leisure travels. 1. background of the study The airline industry is currently affected by a number of factors that threaten their operations. The poor economic times have negatively affected their operations .the high operation cost has significantly reduced the market size due to the effects of the global melt down as well as uncertainty that defines oil prices Kenya Airways, headquartered in Nairobi, is the major airline serving east Africa. Together with its strategic partner KLM ROYAL DUTCH Airlines, it is the leading operator on all domestic routes with in Kenya as well as operating scheduled passenger and cargo services to major destinations in sub- Saharan Africa, Europe, the Middle East and Asia. It has international...
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...CONSUMER BEHAVIOUR Service Quality Perceptions of Domestic Airline Consumers in India: An Empirical Study SUBMIITED TO: MEENAKSHI HANDA BY: SAHIL MALHOTRA (13) RAHUL KALRA (39) Abstract Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Existing literature suggests that measurement and management of service quality is the key for survival of airline companies. This research paper examines the service quality delivered by four major airlines in India on the backdrop of stiff competition in the airline service sector. The process of traveling on a domestic airline was divided into pre-flight, in- flight and post-flight experiences. A survey was conducted to find out the perceived service quality of frequent fliers on each of the four airlines across a series of service performance variables. The airline brands were positioned in a perceptual space, where the perceived service attributes were also mapped. Clear differences emerged among the airlines, with two of them perceived as being similar to each other, and the other two differing in many respects. INTRODUCTION India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarterly (2005), the Indian aircraft market is the world’s second largest commercial aircraft market. On-time performance and service levels have risen dramatically and fares have...
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...involves the study of all aspects of the company and then that information will be used to make business decisions. This requires several steps to help the company achieve its goals, and evaluating its strengths and weaknesses to solve or to avoid problems. The research process also helps to have a clearer and updated idea of their industry (Suttle, 2014). The preposition is that airlines with more satisfied customers will have more passengers. This process will lead to a more successful airlines and gain a larger customer base. After working for the airlines for a few years doing airport security, I decided to review an article titled “Customer Satisfaction in Airline Industry." During my time at the airport I gained tons of experience, I saw how many of the passengers left the airport frustrated with the services offered. I think this is a good topic for me to evaluate, because it helps me to understand situations that are important within the airline industry. It will also allow me to gain insight in other areas that operate within the airport. This will allow me to have better insight if I ever chose to return to a job at an airport. In the summary of the article “Customer Satisfaction in Airline Industry” explain how the research followed on how the five dimensions of customer satisfaction was applied in the airline industry. Such articles can be used to design strategies specifically aimed to increase the level of customer satisfaction in the airline industry. These strategies...
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...in Turkish Airline Companies Dilek Erdogan (Corresponding author) Department of Aviation Management, Faculty of Aeronautics and Astronautics Anadolu University, Eskisehir, Turkey Tel: 90-222-321-3550 / 6984 E-mail: dilekc@anadolu.edu.tr Ergun Kaya Department of Management, Faculty of Business Administration Anadolu University, Eskisehir, Turkey Tel: 90-222-335-05-80/ 2544 Received: Sep. 16, 2014 doi:10.5296/jmr.v6i4.6355 E-mail: ergunk@anadolu.edu.tr Accepted: Oct. 13, 2014 Published: October 13, 2014 URL: http://dx.doi.org/10.5296/jmr.v6i4.6355 Abstract The aim of this study is to analyze performance indicators used by airline companies within the framework of a performance and strategic management tool, namely, ’balanced scorecard (BSC)’, and to assess its applicability in the airline business. Designed as a multiple case study by collecting data from primary and secondary sources, the participants of this study are scheduled airline businesses operating in Turkey. The airline companies have been found to use similar performance indicators within the financial, customer-based, internal business process, and learning/growth perspectives of BSC. Airline companies are recommended to use BSC because it allows them to transform their strategies into measurable performance indicators and to assess their performance multi-dimensionally. Keywords: Strategic Management, Performance Management, Balanced Scorecard, Airline Industry, Performance...
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...m31: Home AssignmentCover Sheet Quality ManualVersion 5 2014-15 | Student(s) Name and ID: | Course Code and Title:Integrated Project Quality management. BUS4956 | Date: | Section:CLW | Submission Deadline:week 16 Late submission results in losing grades. For every working day delay the maximum grade decreases by 5%, up to a maximum of 35% after a week. Also note, not following the formatting guidelines an additional 10% may be lost. | Name of the Course Team Leader /Academic Coordinator (Moderator):Dr.BeenaSalimSaji This Assessment and the related Marking Scheme have been pre-moderated and approved by the Course Team Leader/Academic Coordinator of the Business Department according to the following criteria * The learning outcomes are covered as indicated in the assessment strategy. * The questions are clearly constructed and at an appropriate academic level. * The possible marks for each question are clearly stated. * The amount of time for the exam is properly allocated. * The level of English language is clear and suitable for the course. * The marking scheme is clear and detailed | Academic Format Reports/Essays submitted must follow the APA (American Psychological Association)thehttp://owl.english.purdue.edu/owl/resource/560/01/.Formatting and language contribute exactly ten percentage points to the overall grade. | Warning to Students! Students must submit their own works as assignments, and they cannot copy anybody’s ideas into their...
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...Product Description PRODUCT DESCRIPTION RES 351 Week 1, Business research process involves the study of all aspects of the company and then that information will be used to make business decisions. This requires several steps to help the company achieve its goals, and evaluating its strengths and weaknesses to solve or to avoid problems. The research process also helps to have a clearer and updated idea of their industry (Suttle, 2014). After worked for more than seven years in the airlines industry, I decided to review an article titled “Customer Satisfaction in Airline Industry.” During my years of experience, I saw how many of the passengers left the airport frustrated with the services offered. I think this is a good topic for me to evaluate, because it help me to understand situations that are important within the airline industry. Current Event in Business Research In the summary of the article “Customer Satisfaction in Airline Industry” explain how the research followed on how the five dimensions of customer satisfaction was applied in the airline industry. Such articles can be used to design strategies specifically aimed to increase the level of customer satisfaction in the airline industry. At first I was a little confused about the method used in this article, but I have come to the conclusion that the method used in this article is applied research using an explanatory study. “The problem-solving nature of applied research means it is conducted to reveal answers to...
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...It is commonly known that the airline industry uses a different mechanisms to price discriminate (PD) consumers with varying elasticities of demand in terms of travel.[1] In this case study, I will investigate PD based on the day of the week a ticket is purchased. In theory, this method of price discrimination is very feasible as airfares can be easily changed on a day to day basis. For example, consumers who travel on any given day of the week but purchase on the weekend may have different PED than those consumers who purchase their tickets during the week. By comparing different days of the week and ticket prices, we can study whether the airline industry has identified this method as a valuable segmenting device. I will start this case study by defining the theory of PD then continue by assessing data regarding ticket prices and day of week of which purchased then conclude if there is enough evidence of PD. Price discrimination is the practice of charging consumers different prices for the same good or service, whereby the relevant price in each case depends on the buyers characteristics. The most common form of PD would include grouping consumers based on certain attributes and charging these groups a different price. In pure price discrimination, the price of a good or service will be set at the maximum of which each consumer is willing to pay. The goal of PD is to gain an extra slice of untapped revenue source from consumers who are willing to pay a higher price...
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...the last decades, aviation or airline industry represented higher level of business growth rapidly. Additionally, in terms of business development airline industry is playing effective role in enhancing global trade, international business investment and activities in tourism sector. In reference to specific roles, it can also be illustrated that airline business industry is the major focus of globalisation for other business sectors. The improving airline industry offers number of opportunities and challenges to different business organisations functioning in specific industry. However, the challenges don’t arise only due to higher market competition rather because of enhancing demands of customers in order to attain better quality of service....
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...in the air travel industry over the last couple of decades witnessed a revamped approach and new ways in conducting business. Multiple airlines have adopted various ways of branding themselves but the most common approach was adoption of corporate social responsibility. These companies feature more of giving back to the community and participating in activities entirely different from their main line of operation. This paper conducts an empirical and qualitative evaluation of eight major airlines in the air travel industry and their adoption of corporate social responsibility. The paper is mainly structured in two major parts. Broadly stated, the first part is a theoretical perspective whereas the latter part captures the practical evaluation of CSR in eight airlines. Therefore, the first part irons the researcher’s understanding of CSR theory such as the participating stakeholders. In addition, this part captures an overview of CSR in the air travel industry as well as outlining accumulative gains to this trend. The second part covers the broader part of this thesis taking a practical approach. This part includes qualitative analysis, evaluation and review of CSR application programs in eight of the sampled airlines. The chosen airlines where selected by sampling from among three of the largest airline alliances globally. The sampled airlines include British Airways, America Airlines, Qantas, Lufthansa, All Nippon Airways, Air France-KLM, Delta Airlines and Cathay Pacific...
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