...MDA Airlines MDA Airlines Risk Register A. Risk Register “The candidate provides a risk register with 8 risks currently facing the business, with substantial detail.” Risk 1|Jet Fuel Prices Fluctuates | Description|Fuel is required to fly aircraft and with fuel prices always changing, it can be very difficult to budget for it on a monthly/annual basis. The cost of fuel is based on the price of crude oil per barrel and is set by global entities. | Source|Global jet fuel prices are always fluctuating. If not able to purchase enough fuel at a reasonable price to store for several months, the company could find themselves well over budget potentially grounding aircraft.| Likelihood of Occurrence|High - Crude oil is traded on the stock market daily with prices fluctuating based on supply and demand.| Severity of Impact|High - If MDA is not able to manage the budget, they could find themselves in a financial bind.| Controllability|Med - The hedging program is intended to mitigate risks associated with increasing crude oil prices and is also intended to make it easier to plan for future fuel costs.| Risk Response|Mitigate - The acquisition and purchase of a refinery were researched by logistics managers that monitored and studied the aircraft fuel supply chain, which discovered that over the years refiners have benefited from increased margins on the sale of fuel. This decision will save millions of dollars and insure a reliable fuel supply for the domestic...
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...RUNNING HEAD: THE AIRLINE INDUSTRY The Airline Industry Name College Table of contents Abstract 3 Introduction: 4 Products and services: 4 Organization: 4 Major players in the airline industry: 5 Economic impact of the airline industry: 8 Employment within the industry: 9 Key trends in the airline industry: 9 - Economic forces: 9 - Technological forces: 11 - Socio-cultural forces and political-legal forces / Government Regulations 13 Logistics and supply chain factors 14 Porter’s Five Forces Analysis: 16 Strategies used by airlines: 17 Expected Entrants: 18 Conclusion and Recommendations: 18 List of Abbreviations 20 Appendix: 20 References 21 Abstract The US airline industry is one of the key sectors of the country’s economy. Employing over ten million people, it contributes up to half a trillion dollars in annual revenues (about 5% of the US GDP). In recent years, the industry has been faced with major challenges arising from its external environment. Some of these include rising fuel prices and the global economic recession. As a result, growth in the industry has significantly slowed down with the ATA estimating that by the end of 2008 the industry had lost between $9 and $24 billion. With high intensity of industry rivalry, high supplier bargaining power, low threat from new entrants, low threat of substitution, and low buyer bargaining power; the industry’s attractiveness can be described as moderate. To be successful...
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...the ICTs, but there has not been formal study to determine the level of adoption and impact on the efficiency of the organizations and the consequent effect on the nation's economy. This study, is therefore, designed to determine the level of adoption in the Nigerian organizations, and the impact on the operations of these organizations as well as investigating the factors responsible for the present level of adoption of these technologies in the organizations. Globalization of the social economy will further increase during the 21st century. The mission of international air transportation will become more important, and all airports around the world will have a significant role to play. Furthermore, it is predicted that air transportation demand in the world will double over the next 15 years. In the meantime, since the September 11, 2001 terrorist attacks on the United States, the environment surrounding the aviation industry has become very severe and has caused adverse impact to the entire aviation industry. Security at airports has been reinforced in all aspects, significantly deteriorated on-time performance, caused mass congestion at the airport, and caused a drastic increase in aviation management and operational costs. Owing to...
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...Value Chain Business 1_ Introduction: The concept and benefits of Value Chain Analysis in preparing business strategies: To survive in today's highly competitive business environment, any organization must achieve, at least temporarily, a competitive advantage. A low cost/price strategy: focuses on providing goods, services at a lower cost than the competition. This strategy requires as well a tight cost-control system, benefiting from economies of scale in production and experience curve effects. Differentiation strategies: The firm ability to offer products and services that are perceived by the customer as being superior and unique relative to those of its competitors like Coca-Cola in the soft drink industry...... A value chain can be described as the key activities engaged in by the organisation or industry.: Value chain analysis may benefit an organisation in a number of ways including: - Value chain framework: complements other recent initiatives like strategic cost management, which refers to the simultaneous focus on reducing costs and strengthening an organisation's strategic position. This commonly involves taking a longer-term view of cost management and decision making - Provides a foundation for strategic alliance decisions. A value chain framework serves as the foundation for considering decisions such as outsourcing of particular parts of the value chain and for considering the formation of strategic alliances with say a distributor. In this way, the...
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...given rise to many airline companies to provide the best service and safety to an individual to make his journey a memorable one. Airline companies are constantly upgrading with technology and other services for competing in this ever-growing airline industry. Malaysian airlines is one of the prestigious passenger airline carrier owned and run by the government of Malaysia also known as MAS in short. Malaysian airlines operates in more than 60 destinations around the world. Product and Experience Analysis: Malaysia Airways is one of the mid cost airline company and operates from the homeland base Kuala Lumpur. Malaysian airlines has established itself in the South East Asia region and travelling around the world. Malaysian airlines is one of the few airlines to be awarded with the 5 star airline status by Skytrax. Malaysian airlines also operates 2 airline subsidiaries Firefly and MASwings which operate internally within Malaysia. Other services offered by MAS include things like architectural operation, resort management, catering, digital booking companies, transportation and warehousing companies. MAS is an international carrier operating in 117 domestic destinations and 115 international routes in six continents. MAS offers 3 different classes first, business and economy class to suit the customer needs and compared to other 5 star airlines the prices offered by Malaysian airlines are way cheaper and they are highly competing with the other low cost airlines and offer exceptional...
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...Term paper on “The Airline Industry in Bangladesh : A management Colosseum” Faculty of Business Studies Bangladesh University of Professionals (BUP) The Airline Industry in Bangladesh : A management Colosseum Submitted to Major General (Retired ) Professor Alauddin M A Wadud,BP Course Instructor, Strategic Management Faculty of Business Studies Bangladesh University of Professionals (BUP) Submitted by 1. Priodarshine Auvi (EV1202026) 2. Mohammad Abdul Momin (EV1202027) 3. Kazi Kamrul Alam (EV1202029) 4. Mahbubur Rahman (Ev 1202028) 5. Maruf Hossain (Ev 1202014) LETTER OF TRANSMITAL Aug 27, 2013 Major General (Retired ) Professor Alauddin M A Wadud,BP Course Instructor Strategic Management Faculty of Business studies Bangladesh University of Professionals (BUP) Subject: Submission the term paper of “The Airline Industry in Bangladesh: A management Colosseum” Dear Sir, With due respect and humble to inform you that it is my pleasure to submit this report on“The Airline Industry in Bangladesh: A management Colosseum”. As your valuable suggestions and guidance, we have tried my best to prepare the report properly. There may be some shortcomings. We would be grateful if you consider those as excusable points and we like to thank you for your kind cooperation. Despite the limitations, we sincerely believe that you...
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...EasyJet- The ‘Easy’ Ways to Succeed Question No.1: With the acquisition of Go. Easyjet become the biggest low cost airline in Europe. What is the mission of Easyjet? Analyze the growth of Eastjet as a successful low-cost airline and its business model. Also discuss the nature of the competition faced by Easyjet and the competitive advantages of the airline over rivals? Answer: The misson of Easyjet is “ safe , good value, point to point air services”. It targeting the leisure and business markets on a range o European routes. Easyjet growth in passenger number increased immensely from the year 1995 to 2002. In the year the annual total passenger were 30000 where in 2002 the total passenger were 11400000. So it clearly depicts the growth of Easyjet as a low-cost airline in terms of passenger. We also see that the revenue amount in 2002 was 861.50 million where in 2001 it was 525.70 million and in 2000 it showed 385.8 million dollars. Easyjet’s net income was 76.5 million in the year 2002 where in the year 2001 and 2000 the net income were 56.20 and 41.9 million respectively. So from the above analysis we can clearly observe that the growth of EasyJet in the low-cost airline industry in Europe. EasyJet borrowed its business model from United States carrier Southwest Airlines. EasyJet has adapted this model for the European market through further cost-cutting measures such as not selling connecting flights or providing complimentary snacks on board. The key points of this...
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...Sevilla, Ronver Simon, Margaux Soriano, Aaron Soriano, Loumarie Sulam, Claire Anne Syson, Alyanna 4A2 “Enhancing Service at Southwest Airlines” 1. What is Southwest’s strategy? (What is the basis on which Southwest builds its competitive advantage?) * Low Cost – Southwest Airlines has a strategic route management which makes its operation costs low. The savings it derives from such low cost operations are passed on to its customers. Aside from that, its no meals, no seating assignment policies makes costs of service low. * Online ticket reservation – By being the pioneer in online ticketing system, Southwest Airlines can tap a larger market. “Online Presence”, especially in today’s changing environment, is an important aspect of achieving a competitive advantage. * “No Frills” strategy – No first class service, no seating assignment and no meals creates convenience to both Southwest Airlines and its customers. Simple service and smooth flow of operations are strategies that Southwest Airlines aims to provide. * Harmonious and Enthusiastic environment – happy people, jokes nd singing flight stewardess creates light and friendly atmosphere 2. Identify the areas where they excel. * Customer Service Southwest Airlines' staff members are excellent at making people comfortable. From the way their flight attendants interact with passengers as they board, to the way they provide the pre-flight seatbelt brief, to the often heard song that a flight attendant might sing...
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...Sector Report No. 8 / 2006 ICT and e-Business in the Tourism Industry ICT adoption and e-business activity in 2006 European Commission Tourism About e-Business W@tch and this report The European Commission, Enterprise & Industry Directorate General, launched the e-Business W@tch to monitor the growing maturity of electronic business across different sectors of the economy in the enlarged European Union, EEA and Accession countries. Since January 2002, the e-Business W@tch has analysed e-business developments and impacts in manufacturing, construction, financial and service sectors. All results are available on the internet and can be accessed or ordered via the Europa server or directly at the e-Business W@tch website (http://ec.europa.eu/comm/enterprise/ict/policy/watch/index.htm, www.ebusiness-watch.org). This document is a sector study by e-Business W@tch, focusing on the tourism industry. Its objective is to describe how companies in this industry use ICT for conducting business, to assess the impact of this development for firms and for the industry as a whole, and to indicate possible implications for policy. Analysis is based on literature, interviews, case studies and a survey among decision-makers in European enterprises from the tourism industry about the ICT use of their company. Disclaimer Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information...
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...Managerial Economics Term Paper DEMAND IN THE DOMESTIC AIRLINE INDUSTRY OF INDIA Submitted by: Akshata Shirodkar ePGP-02-002 This term paper explores the rational economics behind the demand and its affect on dynamic pricing in the domestic airline industry in India, where both of these vary often with time and units available. Based on the learning gained during microeconomics course, this paper analyses the current pricing strategies and norms practiced by the airline industry. Managerial Economics Term Paper Demand in the Domestic Airline Industry of India CONTENTS 1. INDUSTRY OVERVIEW ............................................................................................................................................... 3 1.1 MARKET SHARE ................................................................................................................................... 3 1.2 INDUSTRY GROWTH ............................................................................................................................ 4 1.3 CAPACITY VS DEMAND ........................................................................................................................ 5 2. AIRLINE INDUSTRY CUSTOMERS ............................................................................................................................... 5 2.1 CUSTOMER SEGMENTS ..............................................................................................................
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...year. However, the airline industry suffered its largest downturn between 2008 and 2009, due to the economic downturn. Airlines carried 767,627,651 passengers in 2009, down from 809,447,811 passengers in 2008. Airlines have been forced to accommodate the economic recession by cutting flights, rescheduling existing routes, and looking for new revenue streams. As the economic recession revives itself, the demand for flights has begun to increase with 787,182,312 passengers flying in 2010; a significant upturn from the previous couple of years. Business travel has grown as companies increase their international presence in terms of their investments, supply and production chains and their customers. The rapid growth of global trade markets in goods and services and international investment have all contributed to growth in business travel. The domestic travel industry in the United States is typically a low cost, low fare environment. Most of the major airlines have undergone cost restructuring. Some airlines have sought the protection of Chapter 11 bankruptcy to restructure and reduce costs and then emerged as strong low-cost competitors. The majority have entered into cross-border alliances to improve profitability through synergy benefits. In order to meet the requirements of their increasingly discerning customers, some airlines have invested heavily in the quality of service that they offer, both on the ground and in the air. Electronic ticketing, new interactive entertainment...
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...2011 Executive Summary AA is burdened by high labor costs, a weak balance sheet, perpetual union issues, increasing pressure from low-cost carriers (LCCs), incessant losses. AA must address its high costs, improve its international offerings, and find a solution to the competitive threat posed by LCCs Chiu Cloud Supreeth Kini Fabien Levet Amruta Vantipalli 9/1/2011 Table of Contents Introduction........................................................................................................................................................... 2 Financial Health ..................................................................................................................................................... 2 Market Forces ........................................................................................................................................................ 2 Barriers to entry ................................................................................................................................................. 3 Substitutes ......................................................................................................................................................... 3 Suppliers ............................................................................................................................................................ 3 Buyer Power ...............................................................................
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...Turkish Airlines’ has a strategic fit between target market, business model, operations strategy, and systems and implementation. Through an ambitious brand visibility strategy, prioritizing business class over first class, maintaining a cargo fleet, working from a hub and spoke system within a nexus of countries that comprises 66% of the world international air traffic, and establishing partnerships with jet fuel companies and service companies, Turkish Airlines has strategically buffeted the turbulence of the global financial crisis and made in-roads towards global prominence in the airline industry. Brand visibility has increased due to several agreements with world renowned organization and famous celebrities. They are a sponsor of FIBA World Championship, and they’ve signed agreements with world famous soccer teams, Manchester United and Barcelona, making Turkish Airlines their “the official carrier.” They’ve also made agreements with celebrities, like LA Lakers basketball player Kobe Bryant, establishing world-famous faces as “global brand ambassadors.” They’ve even established certain celebrities as a “Business Class Faces,” like Danish professional tennis player Caroline Wozniacki. While many airlines work to make their first class cabin attractive, Turkish Airlines has made the business class cabin a priority. In the territory Turkish Airlines’ covers, as prices go up at the gas pump, car drivers are more likely to seek business class air commuting. And instead...
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...INTRODUCTION Air blue is a private Pakistani airline based at Jinnah International Airport Karachi. It started its operations on May 24, 2004. It was the first private carrier of Pakistan to operate the Airbus A320 when it initially started. Air blue has been expanding rapidly despite experiencing competition from the other three airline operators in Pakistan. The airline mainly flies on domestic routes plus internationally to Dubai International Airport and also has plans to fly to the Gulf, UK, and USA. MISSION STATEMENT Air blue will be recognized as the most progressive enterprise in the transportation business. We will offer our customers cost effective transportation service within geographical areas and market segments that can benefit from our services and will insure a return on investment and growth rate consistent with current management guidelines. VISION STATEMENT Our vision is to make Air blue the most admired airline in the world. * Ensuring safety comes first * Providing Service Straight from the Heart * Encouraging product leadership * Delivering superior financial returns * providing rewarding career opportunities SWOT ANALYSIS of AIR BLUE: The SWOT analysis is the process of analyzing organizations and their environments based on their strengths, weaknesses, opportunities and threats. This includes the environmental analysis, the process of scanning the business environment for threats and opportunities, which is considered...
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...Gateway to Singapore: Changi Airport Background Airports are “a vital part of a country’s transport infrastructure on which its economy, trade, and business depend.” Changi Airport Group operates and manages the highly recognized and world-renowned Singapore Changi Airport. Currently the world's sixth busiest international airport, Changi Airport has grown into a major air hub in Asia. The various flight routes connect Singapore with 270 cities in 60 countries with the support of more than 100 international airlines. Every 90 seconds, a flight departs from or lands at Changi Airport. Passenger traffic at the airport exceeds 53 million people annually, roughly 10 times the population of Singapore. Changi Airport is not an ordinary airport and is known for its unconventional amenities. It has a comfortable and clean environment and boasts superior customer service. There are 350 retail stores and 120 restaurants inside the airport’s three terminals, which accounts for a total business area of roughly 750,000 square feet and 50% of the airport’s revenue (S$2 billion in 2013). To name a few unique amenities, there are free movie theatres, napping and lounge chairs, karaoke studios, showers, prayer rooms, playgrounds, events for families and children, and gardens housed within the airport, among many other things. It is viewed “not just as Singapore’s gateway to the world, but also the world’s gateway to Singapore.” This all makes Changi airport a travel destination rather...
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