...Reducing Airline Fuel Consumption and Cost Fuel costs have become a major percentage of total airline operating costs. Fuel accounts for roughly 40% of total operating expenses and for U.S. carriers it totaled $47.3 billion last year (Grose, 2013). In an attempt to reduce such high costs, airlines have implemented a variety of fuel saving strategies. Weight Reduction Weight reduction is a major concern for airline fuel savings. Every aspect of aircraft design is looked at from a weight/safety standpoint. Below are a few of the most novel approaches to weight reduction that airlines have implemented in the past few years. Phasing Out Paper In 2011, United and Continental pilots began using 1.5lb iPads as electronic flight bags to replace the traditional 38lb paper flight manuals. The projected fuel savings was calculated to be 326,000 gallons of jet fuel for a savings of $1.2 million per year (United Continental Holdings Inc., 2011). This year, American Airlines received regulatory approval for flight attendants to swap out their 5lb paper manuals for 1lb Samsung tablets for a fuel savings of $650,000 per year (Dastin, 2014). While there is a large upfront capital cost for the purchase of thousands of tablets, this is offset by no longer having to print millions of sheets of paper each year for manuals. As for in-flight magazines, Singapore Airlines has been experimenting with providing digitized content for its three magazines on long-haul flights....
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...international business environment impact a enterprise grown. The reason of why I choose American Airlines again is for the last two assignment I have had a deep understand of this enterprise, so I'd like to analysis the growth of American Airlines in another angle, that will be interesting. About American Airlines There are many air transport companies in The USA , The American Airlines is one of the most representative companies in The USA , not only the scale of the company, but also was the first company that combined e-business with the traditional business model . American Airlines was founded in 1930, formerly American Airways, Inc.It was combined by more than 80 small airlines. American Airways, Inc. officially became American Airlines, Inc. in 1934, the same year C.R. Smith became president of the company. The airline began trading on the New York Stock Exchange on June 10, 1939. Originally headquartered in New York City, where it continues to maintain a strong presence, American moved its headquarters to Fort Worth, Texas, in 1979 and has since become one of the largest airlines in the world, contributing nearly $100 billion to the U.S. and international economies. It has helped create more than 900,000 jobs worldwide, and supported approximately 1,400 non-profit organizations worldwide. American and its regional airline affiliates, American Eagle and the American Connection airlines, serve approximately 250 cities in over 40 countries with, on average, 3,400 daily flights...
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...American Airlines Strategic Report for American Airlines Jed Cullen Kevin Yamazaki Deirdre Chew April 7, 2010 April 7, 2010 Page 1 American Airlines Table of Contents Executive Summary ............................................................................................ 3 Company History................................................................................................. 4 Financial Analysis ............................................................................................... 8 Current Financial Position.................................................................................. 8 Industry Comparable Analysis ......................................................................... 12 Stock Performance .......................................................................................... 14 Management and Analyst Outlook................................................................... 15 Competitive Analysis ........................................................................................ 16 Internal Rivalry ................................................................................................. 17 Supplier Power ................................................................................................ 18 Buyer Power .................................................................................................... 19 Entry and Exit ..............
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...STRATEGIC ALLIANCES IN THE GLOBAL AIRLINE INDUSTRY Abhishek Goel1 Abstract Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare. “Airline Business Alliance Survey of 2000 reports that there are 579 alliance agreements in place, up from 280 agreements (more than double) in 1994 when the survey was first conducted. Five major alliances (Star, Oneworld, Qualiflyer, Sky Team, and Wings) account for some 60 percent of all air travel.” (Mason, 2002) The lines above make the issue important enough to understand the phenomenon that is guiding the industry. Almost a decade back Oum, Taylor and Zhang (1993) argued that the airline industry will be marked by strategic alliances and these alliances will be global in nature. The guiding factors will be several that include formation of blocs, resource...
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...Oil and American Tobacco have been dismantled through anti-trust laws. In addition, the antitrust laws prohibit price fixing between competitors. In 1934, Boeing became a large enterprise, producing aircraft engines, carrying mail, dealing with airports and ensuring many airlines. But under pressure from anti-trust law prohibiting manufacturers to operate airlines, its creators sold their holdings and "United Aircraft and Transport" got divided into three entities: * United Airlines responsible for air transport * United Aircraft responsible for manufacturing in the East * Boeing Airplane Company responsible for manufacturing in Western countries. United Aircraft and Transport Corporation is a vertically integrated group, present in all sectors of aviation. In 1934, an anti-trust law is to separate aircraft manufacturers companies carrying mail, and forces the company to split into three entities, * United Air Lines in 2011, which is the largest airline in the world * United Aircraft Manufacturing Corporation, which later became the United Technologies Corporation * Boeing Airplane Company, which became in 1941 The Boeing Company. Case example of Air France / KLM In September 2003, it was announced by Air France and KLM that they would merge their ownership and begin synchronizing operations, although they would continue to be supposedly separate carriers. This blend of two of Europe's largest four carriers created the world's largest airline, as considered...
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...BACKGROUND OF EMIRATES AIRLINE In the mid-1980s, Gulf Air began to reduce its service to Dubai as it was concerned it was providing regional feeder flights for other carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity...
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...BACKGROUND OF EMIRATES AIRLINE In the mid-1980s, Gulf Air began to reduce its service to Dubai as it was concerned it was providing regional feeder flights for other carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity...
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...Delta Airlines inc. History of company Delta Air Lines, Inc. incorporated on March 16, 1967, provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company's operates through segments, including Airline Segment and Refinery Segment. The Company's route network is cantered around a system of hub, international gateway and key airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities, and other hubs or gateways. The Company also offers cargo services, aircraft maintenance, repair and overhaul (MRO), staffing services for third parties, vacation wholesale operations and private jet operations. In addition to providing maintenance and engineering support for fleet of over 900 aircraft, its MRO operation, known as Delta TechOps, serves aviation and airline users around the world. Its Delta Global Services provides services to third parties, including staffing services, aviation solutions, professional security and training services. The Company's tickets are sold through various distribution channels including digital channels such as delta.com and mobile, telephone...
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...Case Study Starbucks, Google, GAP and Southwest Airlines Student Name Instructor Name University Affiliation Date Introduction The success of any business organization is highly dependent on its strategic management. It is defined as the process by which managers of a firm analyse the external and internal environments with the aim of formulating strategies and apportioning resources to develop a competitive advantage in an industry that permits for the successful realization of organizational objectives. The company’s mission, vision and future goals are all set from the strategic process. Further, strategic management provides managers with the advantage of allocating resources efficiently. Moreover, these plans help give the firm a competitive advantage in the market. Statistics have proven that on average, companies that employ strategic management are more successful than those that don’t. This assignment will aim to clarify the concept of strategic management in the global sense as well as focus on Southwest Airlines, Starbucks, GAP and Google companies. In so doing, the following questions will be answered: Which of the strategies is the company using? What are the weaknesses and strengths of the different strategies? Under what conditions do they work best? What are the effects of implementation...
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...Alaska Airlines Strategic Management Model Linda Gay Cahill Table of Contents: Strategic Profile Company Introduction 3 Strategic Analysis PEST Analysis (Political, economic, social & technological factors) 4 Resource-Based View 6 Value Chain Analysis 8 SWOT Analysis 11 Strategy recommendations 13 References 14 Company Introduction Alaska Airlines is the ninth–largest U.S. airline based on passenger traffic and is the dominant U.S. West Coast air carrier. Headquarter in Seattle, Washington, Alaska carriers more passengers between the state of Alaska and the Lower 48 than any other airline. During recent years it has expanded significantly to serve more U.S. East Coast, Mexican and Canadian destinations. Long know for its Alaskan roots, symbolized by the Eskimo painted on the tail of the aircraft, Alaska Airlines offers a friendly and relaxed style of service, one that passengers have came to appreciate as the “Alaska Spirit.” The airline is known for embracing innovative technology to improve the customer experience. The carrier traces its roots back to 1932, when Linious “Mac” McGee airways started flying his three-seat Stinson between Anchorage and Bristol Bay, Alaska. A merger with Star air service in 1934 created the largest airline in Alaska, which eventually became Alaska Airlines. Alaska and its sister carrier, Horizon, are owned by Alaska Air Group.1 Alaska Airlines has a dominant market share serving Alaska. Unlike the rest of the economy...
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...Creating Your Dream Job Student’s Name Course Name and Number Instructor Institutional Affiliation Date Job Description Ideally, my dream job is being an airline manager of one of the most highly rated airlines in the world such as the Delta Airlines. An airline manager is basically responsible for carrying out discussions with the Airline personnel who often oversees design certification, test and turn up, installation, maintenance of airline equipments, as well as other activities involved in the company’s maintenance department. The manager assts in the development along with the implementation of procedures and practices, whilst making sure that all the operating goals are adequately met. In terms of the education or experience requirements, a successful candidate ought to possess a Bachelor’s degree in the field of management, with at least 2 years experience in a broad range of airline operations or any other related tasks. The skills required for the job include; excellent oral and writing skills, ability to multitask, advanced knowledge for data input along with record keeping, capacity to handle staff effectively and solve problems when they arise, and knowledge of more than one language. In review, the specific work elements for this job include assigning tasks to staff, keeping up-to-date with the airline’s technical operations, ensuring aircraft logs a along with maintenance records are as correct as possible...
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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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...UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-5424 DELTA AIR LINES, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) Post Office Box 20706 Atlanta, Georgia (Address of principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered 58-0218548 (I.R.S. Employer Identification No.) 30320-6001 (Zip Code) Registrant’s telephone number, including area code: (404) 715-2600 Common Stock, par value $0.0001 per share New York Stock Exchange No Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the...
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...The issue of ethics in the corporate world has been widely talked about over the last decade. Corporate scandals almost seem like a part of everyday life. The nation’s response is to inform students of ethical conduct and hold organizations to a higher standard. This will hold CEOs and management responsible for all fraudulent acts committed by an organization. The ethical spotlight has now turned to CEO compensation due to the recent decline in the economy. The focus point of those public discussions has been to try and get a better position to influence CEO compensation packages. Determining a CEO compensation package and commitment that does not place undue pressure on the CEO to taint financial statements, provide excessive perks, approve stock option scandals to occur, and let outrageous severance packages could be a giant step in the right direction toward an ethical foundation in the business community. Perhaps CEO compensation packages are not the cause of corporate scandals, but sometimes they do push CEOs into making improper and unethical decisions. The relationship between CEO compensation is parallel to being an ethical company, and having long term success Executive compensation has risen significantly in past ten years. These increases are difficult to comprehend considering profits and stock prices of the only increased by 11% and 23% respectively as of 2008. Although the increase in market value created an environment for increasing compensation without much...
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...Continental Airlines and United Airlines Merger Tony McDougal December 2, 2012 Professor Bates Abstract This paper explains the challenges faced by two major U.S. airlines, United and Continental airlines in an attempt to merge, and form the world's largest airline based in the United States. This consideration is based in relation to the movement of passengers via air traffic. The airline merge occurred in order for each airline to survive and be competitive within the airline industry. The paper explains briefly the reason for this merger, the strategy it used and went through to accomplish the merger. It also explains some pros and cons the merger and management faced. It explains the vision of the newly created company in reference to where they want to be in the future and the profit of revenue they foresee to earn with this merger. This paper outlines the structural change the new United Airlines came up with after the merger took place and how both United and Continental Airlines management, employees, and customers adapted to the merge. Continental Airlines and United Airlines Merger The merger of United and Continental airlines that was under way in 2008 formed the third’s world largest airline. This merge occurred during the decrease of air travel from heightened security measures against terrorism and high fuel costs. During this time, the United States government also tried to help by giving the airline industry monetary...
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