...Refer to the discussion of the New York-San Juan pricing decision in the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? In response to Eastern’s pricing initiative, Doug Santoni should collect several bits of information before deciding on an appropriate rejoinder. First, he should know the volume of the passengers that travel along this route, for both American Airlines, and it’s main competitors, Eastern and TWA. This will allow him to make the correct downstream calculations such as changes in revenue, profits/losses, and capacity along the New York-San Juan route. A breakdown of the busiest times/routes (for all airlines, but especially American) would be useful to determine which flights need to be targeted, if any, with a response. Most of the other information Doug should collect relates to the makeup of the passenger types. How many passengers are traveling for business versus pleasure? Knowing this could again help predict capacity and revenue changes. While the makeup is divided fairly evenly into three categories (business, leisure, and locals), what is their specific makeup during the peak and slow seasons? The latter is when Eastern has tended to target with low one-way fares in the past, and it would be good to know who purchases those tickets at the time. If the low point is coming from a slow in leisure and/or local passengers, a price drop may be needed to increase passenger...
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...Budgeting: How to Build Up Your Wealth Trameika Green Managerial Accounting: BUS 630 Dr. Isabel Wan September 12, 2011 Abstract When hearing the word budget, the first few words that come to mind is money, time, or saving. However, to clearly understand the concept of budgeting, one must have a clear, concise definition of the word. According to InvestorWords.com, budgeting can be defined as “an itemized forecast of an individual's or company's income and expenses expected for some period in the future” (http://www.investorwords.com/600/budget.html). With that being said, one can conclude that budgeting is the foundation of every financial plan. It doesn’t matter if one is making seven figures a year or living from paycheck to paycheck, if you want to control your money and not let your money control you, one’s best bet are to have some type of budgeting plan. Although some may think that budgeting is all about having restrictions on your spending and not be able to enjoy the finer things in life, the sole purpose of having a budget is to allow one to see where their money is actually going and the best way in which to allocate any funds saved. Also, for those who choose to construct a budget, usually save money that would have been otherwise been spent on unnecessary things; thus, making them able to become wealthier and save for better possessions in the long-term. This paper will detail how to create a budget, how budgeting can build your wealth, the...
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...THE AIRLINE INDUSTRY is in deep crisis. Losing over 100,000 jobs since September 11, 2001, and suffering major wage and benefit cuts, workers are in shock and looking for new leadership. The recent U.S. invasion and occupation of Iraq, the outbreak of the SARS epidemic and the economic downturn exacerbate the impact of the crisis on labor. Airline workers are in the forefront of discussions about their own industry and more general questions as political and social consciousness changes under the impact of the restructuring crisis. These experiences are valuable for all workers. While 9/11 and subsequent events greatly worsened the crisis, the dire state of this industry pre-dated the 9/11 attacks. The major carriers were losing millions of dollars and facing possible bankruptcy filings because of broken business models that were no longer profitable. In the capitalist system that generally means businesses fold. Bankruptcy as a Weapon Government aid still flows to the airlines, as it did after 9/11. But Wall Street and Washington are pushing the restructuring process. Meanwhile some important facts indicate the depth of the crisis and the challenge facing rank-and-file workers and their unions. Last summer US Airways, the seventh largest carrier, filed for bankruptcy and began slashing jobs, wages and benefits. It emerged from bankruptcy in the spring as a smaller carrier with lower labor costs than most of its competitors, but US Airways is still not out of turbulent...
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...Biman Bangladesh airlines: COMPANY OVERVIEW: Biman Bangladesh Airlines operates as a national flag carrier of the People's Republic of Bangladesh. It carries the nation's flag to various South Asian destinations, South-East and Far-Eastern destinations, destinations to Gulf and Middle-East region, and European and North American points. The company has sales agents in Abu Dhabi, Dubai, Sharjah, and Ajman, the United Arab Emirates; Athens, Greece; and Manama, Bahrain. Biman Bangladesh Airlines was founded in 1972 and is based in Dhaka, Bangladesh. It has additional offices in Barisal and Chittagong, Bangladesh; New York; Los Angeles, California; London and Manchester, the United Kingdom; Abu Dhabi, the United Arab Emirates; Manama, Bahrain; Kolkata and Delhi, India; Bangkok; and Hong Kong. KEY DEVELOPMENTS FOR BIMAN BANGLADESH AIRLINES Biman Bangladesh Airlines to Launch Services from Manchester Airport 10/14/2011 Manchester Airport announced that Biman Bangladesh Airlines will begin services from Dhaka to Manchester this winter. Tickets for the twice-weekly service are on sale now and the inaugural flight is scheduled for 2 November 2011. The route will be the airport's longest direct flight. Services are scheduled to operate on Wednesdays and Saturdays with a newly purchased B777-300ER with a two class configuration. J.P. Morgan Provides USD 277 Million Financing Facility to Biman Bangladesh Airlines Limited 08/9/2011 J.P. Morgan announced that it has provided a...
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...Journal of Management Research ISSN 1941-899X 2014, Vol. 6, No. 4 Understanding Performance Indicators of Organizational Achievement 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...
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...AIAA-2005-0001 The Impact of Information Technologies on Air Transportation R. John Hansman* Massachusetts Institute of Technology, Cambridge MA 02139, USA The Air Transportation System and several key subsystems including the Aircraft, Airline, and Air Traffic Management are modeled as interacting control loops. The impact of Information Technologies on each of these subsystems is evaluated through the performance of these control loops. Information technologies are seen to have a significant impact on the safety, efficiency, capability, capacity, environmental impact and financial performance of the Air Transportation System and its components. T Introduction he US and International Air Transportation Systems have demonstrated remarkable growth and increased performance over the past few decades. Fig.1 demonstrates the growth in passenger and cargo traffic in international regions since 1972. Strong growth can be seen in North America and Europe which continue to dominate the passenger traffic. In addition, extraordinary growth can be seen in Asia/Pacific which has dominated the cargo traffic since the early 1990’s. Scheduled Revenue Passenger-Kilometers by Region 1400 1200 1000 RPK (billion) North America Europe Freight Tonne-Kilometers by Region 45 40 35 North America 30 FTK (billion) Europe Asia and Pacific Latin America & Caribbean Middle East Africa 800 600 400 200 0 1970 1975 1980 1985 1990 1995 2000 2005 Asia and Pacific Latin America...
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...2.1 product and services marketing 3. Critically examine the winning strategy of Indigo Airlines which has recently posted net profit. Identify and evaluate the reasons for the failure of other Airlines. INDIGO AIRLINES Was an American airline headquartered in Chicago, Illinois. It is generally regarded as the world's first business jet airline. It was founded in 1997 by aviation veteran and University of Chicago graduate Matt Anderson business executive and Embry-Riddle Aeronautical University alumnus John N. Fenton and McKinsey consultant and MIT PhD Tom Svrcek. Its headquarters were first located in Chicago's Near North Side, and later at Chicago Midway Airport WINING STRATEGY OF INDIGO AIRLINES: Consumer response to Indigo was strong. The company held a perfect[clarification needed] safety record and delivered unusually[clarification needed] high on-time and flight completion performance. Its passenger repeat rate was nearly 100% and its revenue per passenger mile or yield, over $1.00. The company was actively followed by major media including The Wall Street Journal, The New York Times, the Financial Times, Fortune, Time, USA Today, CNN, CBS and ABC television and was featured in a 2001 Pulitzer Prize winning article in the Chicago Tribune.[citation needed] Indigo also became the object of organized lobbying from Congressman Steven Rothman of New Jersey (D-NJ9), who felt that Indigo represented unwelcome expansion at New Jersey's Teterboro Airport.[citation...
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...“Marketweek” column reads, “Airlines and other money-losing companies.” 1 This tag line reflects the intense rivalry and the massive financial losses undergone in the airline industry in the past few months due to the economic recession and the 9/11 terrorists attacks. Amidst this airline industry malaise, however, JetBlue Airlines (”JetBlue”) launched service in February 2000 and generated over $41 million in profits in 2001.2 In this report, we explore the question, “Is JetBlue’s strategy conducive to sustaining profitability?” The answer is a resounding “Yes”. At the one thousand foot level, we believe that even in the unattractive airline industry in which companies try to differentiate on qualities other than price -- but in the end often compete on price -- JetBlue has a unique formula for success. It competes head-to-head with the majors, particularly Southwest Airlines (“Southwest”), on price, cost structure, features, and customer satisfaction. However, the company has carved a niche in which a “live and let live” strategy should prevail. Indeed, a rival attempting to bankrupt JetBlue may well cause more harm to itself than to its target. Airline Industry Overview Background At one time the airline industry resembled the utility industry to the extent that regulators determined what firms could and could not do. In the 1970s, a time of runaway inflation, and rising unemployment, many agreed that something had to change. In 1978 Congress passed the Airline Deregulation Act, which...
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...Social Media in Business: Recent and Future Trends Social Media in Business: Recent and Future Trends Taylor M. Smith Eastern New Mexico University Social Media in Business: Recent and Future Trends In today’s world, technology surrounds us. Our society is constantly evolving, and is ruled by technology. One of these technologies is social networking through social media. Social networking is becoming a part of everyday life for many people around the world. Social media sites such as Facebook, Twitter, and Linkdin are completely free and allow users to interact with other people across the globe in a matter of seconds. Although these sites may have been originally intended for personal use, individuals are not the only ones using social media sites to communicate with one another. Business, small and large, are also implementing social networking strategies and professional networking to access more potential customers. Social media allows businesses to reach out to their customers – for free. This interaction with customers via the Internet is known as social customer relationship management. Effective social CRM and social media use can be an indispensible marketing tool to a firm by helping to build customer relationships and loyalty, engage customers in conversations, and offer promos and discounts. These are just a few of the many benefits that social networking has to offer businesses and companies. To understand how social media can be beneficial for a...
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...Internal And External Factors Controlling Ryanair Commerce Essay The following report analyses how internal and external factors control to the strategy that Ryanair Plc is following. This report undertakes a detailed study of Ryanair which include a brief outlining of the company’s products and services. Mission, vision and values of the airline will be also explained. It evaluate company’s current strategy and the management of that strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair. Each section of the following report represent the key findings. Introduction to company section includes Ryanair’s background, mission and vision statements, Corporate Social Responsibility policy, company’s stakeholders. External environment section include SWOT analysis. This analysis explain Internal (Strengthens and Weaknesses) and External (Opportunities and Threats) factors. Furthermore, PEST analyse is described. In order to understand company’s profitability in relevance to the competitors, the Porter’s Five Forces framework is used. In Financial sector the turnover , profit margins, operating profit, current ratio, solvency ratio, gearing ratio and the comparability of these during 2006-2008 period is explained. Using the Ansoft’s growth matrix the main strategic direction that Ryanair follow was indentified. The methods of development such as low cost, no-...
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...GLOBAL AVIATION GROUP 2013 Airline Disclosures Handbook Financial reporting and management trends in the global aviation industry kpmg.com KPMG’s Global Aviation practice KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have 152,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Through its member firms, KPMG has invested extensively in developing an experienced aviation team. KPMG’s understanding of the aviation industry is both current and forward looking, thanks to KPMG’s global experience, knowledge sharing, industry training and use of professionals with direct experience in the aviation industry. KPMG member firms serve many of the market leaders within the airline sector. We are leading providers of external audit services with 33% market share of the top 50 airlines by revenue. We also provide other services to over half of these top 50 airlines. KPMG member firms’ strength lies in our professionals and their knowledge and experience gathered from working with a large and diverse client base. KPMG’s airline industry experience helps the teams understand both your business priorities and the strategic issues facing your company. KPMG’s Global Aviation practice’s presence in many international markets, combined with industry knowledge, positions KPMG...
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...usive use at Foundation for Liberal and Management Education (FLAME), 2015 2095 MAY 1, 2008 W. EARL SASSER HEATHER BECKHAM Thomas Green: Power, Office Politics, and a Career in Crisis Another long day at the office had drawn to a close. Thomas Green felt the pulsing in his temples that usually preceded a migraine. As he stepped outside Dynamic Displays’ corporate headquarters in Boston, the brisk air made him catch his breath. It was now February 5, 2008. Green could not believe that in five short months his dream promotion had turned into a disaster. When Green had been promoted to his new position in September, he was a rising star. Now, he would be lucky to celebrate his one-year anniversary with the company. His boss, Frank Davis, had sent the division vice president, Shannon McDonald, two scathing emails criticizing Green’s performance. Green and Davis had yet to see eye to eye on work styles or market trends. Tension had also risen when Green did not enthusiastically endorse the sales forecasts made by Davis. Green felt the forecasts were either overly optimistic or outright fabrications. Before he left for the day, Green had reread the series of emails regarding his performance and was certain that Davis was setting him up to be dismissed. Davis’s most recent email had made it clear to Green that his position as a senior market specialist was in jeopardy. He did not have much time to rectify the situation. McDonald had emailed a formal request to him that afternoon,...
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...CONTENTS Section 1 - Industry Profile Overview Future Outlook European Industry Overview North America Overview Asia & Pacific Industry Overview India & Middle East Industry Overview Development of World Scheduled Air Traffic World Economic Growth and Airline Profits Rankings - Passenger services Rankings – Freight services Section 2 - British Airways Profile Overview Alliances LHR Air Transport Movements LGW Air Transport Movements Awards History Key Events (1987-2005) Board Members Leadership Team British Airways Management Team Employees Brands Departmental Analysis Section 3 - British Airways Fleet Aircraft Fleet Aircraft Delivery Schedule Mainline Fleet Profiles Regional Aircraft Fleet Maintenance Section 4 - British Airways Performance Summary Strategy Social and Environmental Performance Incentive Plans Summary Financial / Operating Statistics Principal Investments Shareholder Information Share Price History Section 5 - Global Partners Overview BA Connect Franchisees oneworld Aer Lingus American Airlines Cathay Pacific Finnair Iberia LanChile Qantas oneworld At A Glance Section 6 - Route Network British Airways Franchisees Section 7 - General Information Airport Three Letter Decodes Outside Advisors Abbreviations & Specialist Terms How To Contact Us 2 3 3 4 4 5 6 6 7 8 89 91 92 93 97 98 99 100 101 102 103 104 9 9 10 10 11 12 13 38 39 40 41 44 47 105 109 110 115 116 118 56 56 57 69 72 73 74 75 75 77 86 87 88 This document has been prepared solely...
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...________________________________________________________________________________________________________________ HBS Professor W. Earl Sasser and Heather Beckham prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2008 Harvard Business School Publishing. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business Publishing. Harvard Business Publishing is an affiliate of Harvard Business School. W. EARL SASSER HEATHER BECKHAM Thomas Green: Power, Office Politics, and a Career in Crisis Another long day at the office had drawn to a close. Thomas Green felt the pulsing in his temples that usually preceded a migraine. As he stepped outside Dynamic Displays’ corporate headquarters in Boston, the brisk air made him catch his breath. It was now February 5, 2008. Green could not believe that in...
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...Chapter 2: How Airline Markets Work...Or Do They? Regulatory Reform in the Airline Industry Severin Borenstein and Nancy L. Rose October 2008 Severin Borenstein is E.T. Grether Professor of Business Administration and Public Policy at the Haas School of Business, U.C. Berkeley (www.haas.berkeley.edu), Director of the University of California Energy Institute (www.ucei.org), and a Research Associate of the National Bureau of Economic Research (www.nber.org). Address: Haas School of Business, University of California, Berkeley, CA 94720-1900. Email: borenste@haas.berkeley.edu. Nancy Rose is Professor of Economics at the Massachusetts Institute of Technology (econwww.mit.edu) and a Research Associate of the National Bureau of Economic Research. Address: MIT Department of Economics, E52-280b, 50 Memorial Drive, Cambridge MA 02142-1347. Email: nrose@mit.edu. Nancy Rose gratefully acknowledges fellowship support from the John Simon Guggenheim Memorial Foundation and MIT. We thank Andrea Martens, Jen-Jen L’ao, Yao Lu and Michael Bryant for research assistance on this project. For helpful comments and discussions, we thank Jim Dana, Joe Farrell, Michael Levine, Steven Berry, participants in the NBER conference on regulatory reform, September 2005, and seminars at University of Toronto, Northwestern University, University of Michigan, UC Berkeley, and UC Davis. This paper is forthcoming as Chapter 2 of Economic Regulation and Its Reform: What Have We Learned?, N.L....
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