...Written by YopieRissa Pahlawan Arfianto RiaHutari RonyHariadi If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. Rollin King and Herb Kelleher, founder of Southwest Airlines in 1971 SECTION 1 – Budget and Low Cost Airlines 1.1. Budget Airlines The original concept of budget airlines is basically outsourced business. It puts together other businesses into and integrates those separate businesses into a form of operation and put effort to create a brand. Basically, it will try to minimize capital investments and cover it with operational expenses. And by nature of its business model, the cost structures are all variable costs, or very minimum fixed costs. With this business model, the company is not only rent the aircraft, but also outsourced its pilots, flight attendants, and other employees. It will sell tickets through agents and use service from company doing aircraft maintenance and services. And to ensure the profitability, it is critical that the operational costs, which is the main source of expenses, to be as low as possible. Therefore, it is typical that companies using this business model to use old airplanes which are close to end of the service-life. This will cost them much lesser than new airplanes. 1.2. Low Cost Airlines BusinessDictionary.com defined low cost airlines as “charter and/or...
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...Technology in Society 31 (2009) 342–349 Contents lists available at ScienceDirect Technology in Society journal homepage: www.elsevier.com/locate/techsoc The politics of airplane production: The emergence of two technological frames in the competition between Boeing and Airbus Alexander Z. Ibsen* University of Arizona, Department of Sociology, P.O. Box 210027, Tucson, AZ 85721-0027,United States a b s t r a c t Keywords: Airplanes Boeing Airbus Two-party democracy Frames Technological philosophy Economic models of technological innovation, as well as modern sociological approaches to the study of organizations, predict that two-actor markets will eventually evolve into one dominant technological logic. Why is it, then, that the only two global manufacturers of large commercial airplanes have developed diametrically opposed technological philosophies? Based on secondary historical sources, this article employs a theory of twoparty democracies from political science and the theory of sociotechnical frames to explain why Boeing pilots are allowed ultimate command of their aircraft whereas Airbus confers this authority to the flight computer. Ó 2009 Elsevier Ltd. All rights reserved. 1. Introduction For anyone who has ever flown on a large airplane owned by an airline based in an affluent country, the chances are almost exactly 50% that the plane will be made by Boeing Commercial Airplanes, and 50% that it will be made by Airbus S.A.S. At the same time, it is 100%...
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...airlines posted record profits, seems unlikely anytime soon. The dramatic slump in airline profits began in early 2001 when business travel started to fall off in the wake of the rapidly deflating technology and dot-com bubble of the 1990s. Then, in the aftermath of the terrorist attacks of September 11, demand dropped through the floor. The airlines began cutting prices to try to maintain their passenger loads in the face of declining demand. However, the tactic didn't work. When one airline serving a particular route cut its prices, its competitors, desperate to cover their fixed costs, quickly followed. The result was a downward price spiral. In the fourth quarter of 2001, prices fell by 15 percent as airlines tried to induce people to fly. Despite this effort, passenger traffic fell by 19 percent, and revenue at major airlines fell by over 30 percent. Even though demand and profits plummeted at the big six airlines, some carriers continued to make profits during 2001-2003, most notably the budget airline Southwest. In addition, other newer budget airlines, including AirTran and JetBlue (which was started in 2000), gained market share during this period. Indeed, between 2000 and 2003 the budget airlines in the United States...
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...a large portion of the world's goods, power much of the world's equipment, and generate electricity more economically than any other device in their size range. However, the diesel is one of the largest contributors to environmental pollution problems worldwide, and will remain so, with large increases expected in vehicle population and vehicle miles traveled (VMT) increasing global emissions. Diesel emissions contribute to the development of cancer; cardiovascular and respiratory health effects; pollution of air, water, and soil; soiling; reductions in visibility; and global climate change. The main changes required to use diesel fuel are driving a different car, locating diesel-fueling stations, and knowing the differences in fuel economy, greenhouse gas emissions, and other aspects that arise from using diesel as a fuel instead of gasoline. While diesel has merit to help an individual save money and prolong the life of his or her vehicle, it also has negative side effects. The regulation requires diesel trucks and buses that operate in California to be upgraded to reduce emissions. Heavier trucks must be retrofitted with PM filters beginning January 1, 2012, and older trucks must be replaced starting January 1, 2015. By January 1, 2023, nearly all trucks and buses will need to have 2010 model year engines or equivalent. I think the environment has become worse because it is polluting the air, causing problems with people’s respiratory systems, and causing deaths by cancer....
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... Southwest Airlines has been a model of admiration for the airline industry and businesses from around the world combined. Southwest Airlines is a rag to riches story that has had to fight for everything it has become. Before Southwest was able to take on its first passengers, they had to fight competitors in the court system for nearly three and a half years. Southwest did not make its maiden voyage until 1971 – from a napkin to the airways with their runway in the Court system. When Texas Aeronautics Commission authorized Southwest to fly, their competitors grounded them within the Court system with continuous litigation for three and a half years. The litigation went as high as the Supreme Court. Finally, on June 18, 1971, Rollin King and Herb Kelleher started an airline service with one simple notion: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." They were right about that. Southwest Airline is now a major airline, in fact, the fourth largest airliner in the United States. 1) What benefits do airline customers seek when they buy air travel tickets? They have always had the lowest price in any market they serve. Because of the cost structure that was developed, Southwest did the opposite of what every other airline was doing. They don’t offer assigned seats or meals. They only fly one type of airplane, the Boeing...
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...a high rate of flights with consistent on-time departures and arrivals. Southwest's employees also desire to make this product service a "fun" experience Southwest Airlines’ Strategy Southwest Airlines is categorized as a Low Fare/No Frills airline. However, its size and importance have led most analysts to consider it to be one of the major airlines despite its fit in the low fare segment. In a fundamental sense Southwest's business level strategy is to be the cheapest and most efficient operator in specific domestic regional markets, while continuing to provide its customers with a high level of convenience and service leveraged off its highly motivated employees. Essentially, Southwest's advantage is that it is low-cost and has a good safety reputation. Cost Leadership Southwest operates the lowest cost major airline in the industry. The airline devised a number of...
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...Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. The company started out at the bottom and worked its way up through industry ranks to become a major competitive force in the domestic segment of the U.S. airline industry. The company was able to overcome industry downturns, dramatic increases in the prices of jet fuel, falloffs in airline traffic due to terrorist attacks and recessions, while other airline companies are in debt or have gone bankrupt. Also, not only were they able to overcome these threats, but they continued to add more and more flights to more and more airports overtime. The major reason for their continued success seems to be due to their low-cost model and strong emphasis on employee and customer satisfaction. Southwest management has done an incredible job at crafting the company’s strategy. From the beginning, Southwest has pursued a low cost/low price/ no-frill strategy. The company has crafted its strategy by incorporating its overall mission, vision, and core vales. Southwest’s strategy is a great example of a winning strategy because it shows the three complementary qualities that characterize an effective strategy. These qualities include focus, divergence, and a compelling tag line. Their strategy is orderly, differentiated and easy to communicate. The company emphasizes three factors to focus on: friendly service, speed, and frequent point-to-point departures. Since Kelly...
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...Introduction: AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission. AirAsia’s vision is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Whereby, their mission is to create a globally recognized ASEAN brand, attain the lowest cost so that everyone can fly with AirAsia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels. EXECUTIVE SUMMARY AIR ASIA Strategic management has played a key role in the success of many business organizations in the world including...
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...for as little as R800, three times a day, and received 2 000 bookings on its first day of operation. The product offering was simple: easy online booking directly with the airline and affordable fares. At the same time, frills were kept to a minimum: tickets could not be changed once they had been purchased7; there was no pre-assigned seating8, frequent flyer programme or business-class; and food and drink were sold on board rather than distributed for free.9 By stripping costs out of kulula.com's operations and business systems, the airline was able to offer up to a 40% discount on a conventional airline ticket. Research had found strong evidence to suggest that independent players did better in the low-cost segment because they were not bogged down by the systems and culture of the full-service airline. So, if kulula.com were to succeed it would had to make the most of the benefits of belonging to the Comair group but also transform its business model. Several local and...
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... At the year ended of 2014, there are more than 10,000 employees that still working within the organizations. Nature of business of AirAsia Group is simply focusing on providing low-cost airline services. But their values to the customers are, “Safety conscious, Caring, Passionate, Full of integrity, and Hardworking but keeping the Fun within.” Vision of AirAsia Group is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. And below is their mission:- * To be the best company to work for whereby employees are treated as part of a big family. * Create a globally recognized ASEAN brand. * To attain the lowest cost so that everyone can fly with AirAsia. *...
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...vehicles. Airframe design means the shape and size of the aircraft. Issues related to mini aerial vehicle design are discussed in the paper. In this paper a case study of design of a 0.6 m fixed wing aerial vehicle is presented. This case study also brings out the requirement of various tools to conduct such an exercise. Introduction: Significant interest is being shown by academic institutions in research activities related to Remotely Piloted Vehicles (RPV’s) and Unmanned Aerial Vehicles (UAV’s). Flying platforms and their design with suitable payloads reinforce classroom education while exposing students to a host of flight related problems and issues of systems integration. There has been a long felt need to bring students, especially in the field of engineering, closer to the complexities and risks in dealing with actual systems. The Department of Aerospace Engineering, IIT Bombay has decided to make headway in this direction by developing remotely piloted aerial vehicles as experimental platforms[1]. The various disciplines required for such a design activity are aerodynamics, performance, structures, stability, control and propulsion. Each of these designs are different compared to conventional aircraft. Scalability cannot be applied directly and it opened up new research areas. Low speed aerodynamics, new construction methodologies, efficient power plant and Navigation Guidance and control are few emerging research fields in the development of these mini aerial vehicles. Methodology...
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...SIA’s present strategic drivers and what is important to consider in this environment. The Possible Futures, or PFutures, looks at what potential drivers or strategic advantages may be present in future, and how SIA is responding to some of these issues. The research in this project is mainly qualitative. It is based on interviews with key people within the airline industry, government officials, industry analysts and stakeholders. The analysis is also based on a review of the airline industry literature as well as the personal reflections of the authors in drawing together some key issues and insights that may help formulate, inform and prepare SIA’s strategy for moving forward into the unpredictable future. This paper begins with a simple model for considering strategic and economic issues in the global airline industry. After this, we examine the Past, where a brief history of the airline industry is followed by sources of uncertainty and an examination of key strategic drivers. The section on...
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...Ryan McHugh Marketing Plan Southwest Airlines Green Initiatives Executive Summary Southwest Airlines was formed in 1971 as a small airline in texas offering services between Dallas, Houston, and San Antonio. Its goal at the time was to provide to customers an airline that got passengers to their destinations on time, for a low price, while making it an enjoyable experience overall. By taking these simple goals and making them a reality for customers, Southwest has been able to expand into a well know and recognized domestic airline. Today the company is able to fly over 100 million passengers a year to 66 cities across the U.S. offering over 3,000 flights daily. Southwest is focused on serving its customers with respect and satisfying customer needs to the best of their ability while maintaining the highest quality service and lowest prices. The company has been able to take advantage of the gaps within the domestic travel market where competitor airlines have failed. These gap exists in low cost service, onboard amenities, excellence in customer service, and the realization of a need for more environmentally friendly airline services. Research and projections indicate that the use of the current business plan coupled with the introduction of Green Initiatives will be sufficient in maintaining the current success and increasing future revenues for the initiatives. In 2007, Southwest began reporting on their current and future environmental initiatives. They have stated...
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...aerodynamics and structures often seem most important – they lead to the overall shaping of the aircraft and to the design of the parts that, when fabricated and assembled, comprise the physical geometry of the aircraft. These are obviously important, but without some other things inside, the aircraft could never fly. These ‘other things’ – more properly known as ‘aircraft subsystems’ or just ‘systems’ – play a crucial role in aircraft design and operation. Systems turn an aerodynamically shaped structure into a living, breathing, flying machine. Systems include flight control, hydraulics, electrical, pneumatic, fuel, environmental control, landing gear, and the evermore- capable avionics. In the early stages of conceptual or preliminary design the systems must be initially defined, and their impacts must be incorporated into design layouts, weight analyses, and performance calculations. Anyone seeking to become a good aircraft conceptual designer must learn about all types of systems. During detail design the systems are fully defined, including system architecture, functional analysis, component design, and safety and failure analysis. This is done by highly experienced systems specialists. Introduction Flight controls have advanced considerably throughout the years. In the earliest biplanes flown by the pioneers flight control was achieved by warping wings and control surfaces by means of wires attached to the flying controls in the cockpit. Such means of exercising control...
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...Running Head: DIFFERENTIAL GLOBAL POSITIONING SYSTEM 1 Differential Global Positioning Systems Clay Guida Southern Illinois University DIFFERENTIAL GLOBAL POSITIONING SYSTEM 2 Global Positioning Systems (GPS) have become one of the greatest innovations of the modern world. Simply put, your personal guide to anywhere in the world. It can accurately get a fix on your position to within 100 meters. This is where most people would say that their GPS gets them down to ten meters or less, and they would be right. But it is GPS in coordination with the Differential Global Positioning System (DGPS) that gets them that accurate of a location. To understand this we must start from the beginning and go over GPS’s history. From there we will take a look at what causes some of the inaccuracies that GPS can. Then we can see how DGPS counters these and gives you the most accurate reading you can have. Differential Global Positioning System, GPS’s right hand man for accuracy. To understand how a DGPS helps a GPS we start at the beginning of it’s short history. Though made for use by the United States government, it was the Soviet Union that launched Sputnik in 1957 and gave us the idea. After the launch, Massachusetts Institute of Technology (MIT) researches observed that they could pick up the radio signal that Sputnik was producing. They also realized that the sound of this transmission varied with the...
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