...Discuss the trends in the U.S. airline industry and how these trends might impacta company's strategy The trend in US airline industry is to use different pricing to attract more customers and to increase the income of the airlines. The airlines use different software that will help them profit on their returns. The trend now for airlines is to decrease the operating cost for the airlines. Nowadays airlines are going into the business of leasing the aircraft verses buying them out right to save on cost. Right now, the level of mergers with airlines have increased due to the operating cost getting so high and to decrease the competition. With merging airlines together this means that many of the cost will have to be shared such as the cost of tickers and baggage fees. Customers can see the difference when they take a flight. There is a cost for everything from headphone to drinks. Airlines are cutting back on meals. Most flights only offer drinks and snacks such as cookies or crackers. “The inculcation of this set of core values within the jetBlue organization is best summarized as delivery of “the jetBlue experience”. The depth of delivery of the jetBlue experience is best measured by the level of customer satisfaction. The J.D. Powers and Associates 2007 North American Airline Satisfaction Study ranks jetBlue the highest airline in customer satisfaction, both among low-cost and traditional carriers. The study ranks, in order of importance: cost and fees; flight crew; in-flight...
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...Golden Flight Airlines Marketing Plan Executive Summary Yilmaz investment and ZK Holding make a joint venture and Golden flight will be established at NYC.As a result of developments in today's global world, information and Communication technologies, such as the airlines are also affected by increased competition in Many sectors. Competition is increasing in importance with the increase in marketing activities. Both national and international markets in competition for the airlines, has become an important issue in the name of marketing activities to survive. Marketing Trend We believe that our business will be successful; we provide computability, tasty food , punctuality, flight frequency and modern flights .That`s the reason with our new flight company Our customers can find all these things in our flights. Airline Marketing Advances in technology with the airlines, the travel and tourism activities have been in the increasingly important. The importance of airlines in terms of tourism; a. Today`s new tourism has a precious and little time that participate in travel with comfort and price competition. This tourism provides an extension of stay at the tourist attraction centre. b. It provides speed and comfort while it contributing the development of the tourism. c. Arranging package tours such as transport, accommodation, local excursions, transfers that to meet the basic needs of tourists and to contribute the development of mass...
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...S.NO. | CONTENT | PAGE.NO | 1. | ABSTRACT | 1 | 2. | INTRODUCTION | 2 | 3. | CUSTOMER FOCUS | 3 | 4. | CUSTOMER RELATIONSHIP MANAGEMENT | | 5. | CONCLUSION | | CUSTOMER FOCUS AND RELATIONSHIP MANAGEMENT CUSTOMER FOCUS AND RELATIONSHIP MANAGEMENT 1.Abstract CRM (Customer Relationship Management), sometimes it is called customer management, customer value management, customer centricity, and customer-centric management. CRM has long been the buzzword for airlines aspiring to 'one-to-one' relationships with all customers, all of the time. Its underlying principles are well established too - those airlines that can effectively attract, serve and retain the best customers will see significant positive effects on their bottom line profitability. The deeper the relationship the airline holds with these customers, the more opportunities there will be for selling additional products and services. However, with the emergence of e-business and the 'new economy', the challenges of building strong customer relationships have become even greater. 2.Introduction The jet age and the resulting euphoria in the market have given the ultimate weapon in the hands of the marketers. They now possess many options with them to persuade the customers to buy their products and services. But also because all of these advance, the...
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...distribution system (GDS) companies emerged. By 2002, traditional GDS operators competed with each other as well as with airline websites, some Web-based travel agencies and a new entrant called Orbitz, an online travel agency owned by a group of airlines. In 1996, less than one percent of airline tickets were sold online. By 2001, 20 percent of airline flights in the United States were booked online, and the percentage was expected to grow to 25 percent by 2004. Seemingly overnight, forty years of comparative stasis in the business models governing airline reservation and ticket distribution turned into a dogfight as airlines, brick and mortar travel agents, online travel agents and GDS operators clashed over the approximately $180 billion market for airline travel. With ticket distribution costs comprising the third largest expense at some airlines, the battle promised to be fierce. The rapidly growing tourism sector in China has provided a good market environment for tourism enterprises, including travel agencies. In the five years through 2012, revenue for the Travel Agencies industry in China has increased at an annualized rate of 11.3% to $47.5 billion. With increasing demand for diversified tourism products such as luxury and high quality products, travel agencies have been developing new tourism products in order to meet the needs of the consumers. Revenue from the top four firms in the Travel Agencies industry in China – CITS Group Corporation, China CYTS Tours Holding...
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...Domestic Environment Delta Air line is an international airline Company that provides schedule air transportation to several places throughout the whole world. The company is based in the United State of America, serving as its domestic market, since establishment and has been ranked the largest airline in the US in regard to the total number of destinations or places it serves. The Airline industry, in which Delta Air Lines serves, is one of key sectors for the economic growth of a country. The industry offers job opportunities to millions of peoples and generating nearly half of most revenue. According to Air Transport Association, 2009 the industry in USA contributes nearly 5 percent of overall Gross Domestic Product , generates more than half a trillion in annual returns and offers employment to more than ten million people. The industry worldwide is predominantly made up of the most promising players, Delta inclusive, such as Southwest, FedEx, US airways, Qatar Airlines, South Africa Airways, Virgin Atlantic, among others. These players are categorized into three depending on their revenues as; major airlines, the national airlines and regional airlines (Gale, 2005). Delta Air Line originally was operational in the agriculture industry in 1942 was it was founded as the world first aerial crop dusting corporation before venturing into the commercial airline industry. With journey coupled with continuous failures and successes, the company has grown to the level it has...
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...Evaluating Competitiveness Using Fuzzy Analytic Hierarchy Process - A Case Study of Chinese Airlines Abstract With the development of a national market economy, the Chinese aviation industry is now confronted with international competition. Therefore, it is necessary to research the competitive status of Chinese national aviation, as well as advice on how to enhance the competitiveness of the Chinese aviation industry. The main objective of this paper is to propose FAHP as an effective solution for resolving the uncertainty and imprecision in the evaluation of airlines’ competitiveness. In this paper, we review the research of industrial international aviation competitiveness at both home and abroad, discuss a theoretical framework for the study of aviation competitiveness, establish an index system with 5 first-order indicators and 17 second-order indicators, set up a Chinese aviation competitiveness model based on simple fuzzy numbers from the Fuzzy Analytic Hierarchy Process, and evaluate the competitiveness of 5 major Chinese airlines. The results show that this model and these indicators are scientific and practical, with a wide range of application prospects for the purpose of improving and increasing Chinese airline competitiveness in the international market. The effective approach presented in this paper is especially applicable when subjective judgments on performance ratings and attribute weights are not accessible or reliable, or when suitable decision makers...
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...Jet Blue Airlines Strategic Management (Bus 599) October 16, 2011 In today’s society there are very few things that are limited in number. There are an immense number of companies that provide goods and services; those companies include but are not limited to wireless telephone companies, grocery stores, clothing stores, car dealerships, and airline companies. There are many different airline companies used daily for both national and international travel. JetBlue Airways is one amongst a number of airline companies. At one point JetBlue Airways was a discount airline carrier; which offered customer’s low fares, operated point-to-point systems, used two types of aircraft, served only snacks, and maintained quick turnaround times at airports. One of the airline company’s focal goals was for their customers to feel as if they were in a small cozy den in someone’s home. However, in the first six months of the year 2008 the US economy slowed and crude oil prices rose to a record of $140 per barrel. By this happening businesses had to cut back on employee travel and this rise in crude oil prices also stopped consumers from going on vacations. The rise in oil prices made air travel more expensive. There operating costs were low, especially compared to those of other major US airline companies (Thompson, Strickland & Gamble, 2010). Discuss Jet Blue’s strategic Intent Being affected by the increase in oil prices, Jet Blue decided to invest in the new airbus A320 which offered...
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...Embraer: The Global Leader in Regional Jets 1. Embraer’s success as a global competitor can be separated into two distinct periods – pre-privatisation and post-privatisation. Pre-privatisation, Embraer was founded on the back of the Brazilian government’s push for developing aeronautics and as such it was given special treatment due to its position as a symbol of Brazilian nationalism. As such, it was able to achieve success initially due to many initiatives set up to promote aeronautic research by the government. Of particular importance is the subsidies received by Embraer, which helped it to achieve the majority market share in the commuter turboprop market with its ‘Bandeirante’ aircraft. The subsidies were believed to be in the region of 39-44% as claimed by their competitor Fairchild, which undoubtedly played a huge role in their early success. However, Embraer began to falter when a series of negative events began to hurt its profits when budgetary pressures as a result of macroeconomic difficulty in Brazil meant that they could no longer depend on subsidies to help boost sales. In addition, their political ties led to the development of CBA 123, which ultimately turned out to be a huge failure. To help examine Embraer’s post-privatisation success, we can use an adapted version of ‘The Four-Tiered Structure of Markets’ found in Khanna & Palepu (2006). In this adapted version of the regional aircraft manufacturing industry (Apendix 1), there are only three tiers namely...
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...Southwest Airlines Co. Analysis * Introduction and Mission Southwest Airlines Co. is a major U.S airline and the world's largest low-cost carrier. It was established in 1967 and adopted its current name in 1971. The airline operates more than 3,400 flights per day and has more than 46,000 employees as of August 2012. In 2013, Southwest Airlines has scheduled service to 84 destinations in 41 states and Puerto Rico. In 2012, Southwest Airlines was the market share leader in domestic air travel in the United States; it transported more passengers from U.S airports to U.S destinations than any other airline, and it offered more regularly scheduled domestic flights than any other airlines. For the 40th consecutive year, the Company was profitable, earning $421 million in net income. The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. The mission statement has always regulated the way the company conducts their business. The company mission statement also highlights their desire to serve customers better and it provides them with direction when they have to make certain service-related decisions. The company mission statement is also another way of saying, "We always try to do the right thing!" According to the U.S. Department of Transportation, Southwest Airlines has the best cumulative consumer satisfaction record. * Market Share These three...
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...Case #1: Air Canada About Air Canada Air Canada is Canada’s largest domestic, U.S transborder and international airline and largest provider in Canadian market. Air Canada was the world’s 15th largest commercial airlines as of 2011. The reason which made Air Canada reach this position is that it is able to provide a wider range of services to meet its customer’s preferences. This enabled Air Canada to not only reduce the overall cost of serving its customers, but also serve them better. IT approach and Outsourcing Information Technology has emerged from a discipline that is primarily focussed on financial and administrative tasks, a core component of all systems in airlines. More comprehensive services are offered to the customers by airlines using IT. Given the critical importance to IT infrastructure to the airline’s successful operations, a set of IT principles should be implemented and often changed for a “productive” and “cost effective” environment. In 1994, a contract was signed between Air Canada and IBM with a view to reduce costs and to allow the airline to focus on its core business. But back then as Air Canada was not satisfied with the services offered by IBM, it proposed a request for proposals (REP) to find IT vendor to partnership with for innovation. A lot of requests were received from the potential suppliers but...
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...JetBlue Airways Corporation is an American low cost airline. Since 2001, the U.S. airline industry has faced an unprecedented set of challenges. Following the terrorist attacks of September 11, 2001, the airline industry reported tremendous losses and several of the largest U.S. airlines filed for Chapter 13 bankruptcy protection (Flouris, Walker, 2005). As a result, the airline industry has been more creative in their strategic marketing plans to remain financially viable. Many airlines have led the way with innovative ideas to retain, gain, and build their customer base. JetBlue Airlines has followed the path of most airlines but as one of the leading low cost air carriers, Jet Blue’s business strategy differentiates from most airlines. Trends in the U.S. Airline Industry and Impact on Strategy Trends in today’s U.S. airlines industry continue to show a drastic departure from business practices of previous years. With the constant increases in the price of conducting business, airlines are searching for ways to make or increase profit. Passengers are often charged for many amenities once offered free of charge by the airlines. Due to one of the most severe economic recessions in recent years, passengers should expect these trends in the airline industry to continue. However, prospects for the airline industry look a lot brighter as the industry continues to persevere and move forward. To cope, in the past years, airlines have been forced to respond by cutting costs on...
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...Strategic Management Group Project Virgin Atlantic Airways Limited Instructor: Mr. Audun Fiskerud Presented by: Mikael Tving Therkildsen - Jacob Brodersen – Jonas Ravn Nielsen - Gary Chuyu Fang Executive summary This report strategically analyses the Strategy Business Unit (SBU), passenger transfer service, for Virgin Atlantic Airways Limited. The strategic analysis contains investigation of certain key business areas of Virgin Atlantic, such as: defining whom the Virgin Atlantic customer is; understanding of the external environment issues of the airline industry; competitor analysis, and analysis of the Human Resources within the organization. Through the analysis of Virgin Atlantic Airways Limited, some issues for the company were uncovered. Especially two main issues should be considered as potential problems for Virgin Atlantic’s business unit and so action needs to be taken within these areas: 1. Lacking economy of scale (size of the company). 2. Increasing environmental awareness among customers. 1. Virgin Atlantic lacks economy of scale because of the size of the company and limited routes available. To be able to compete effectively and gain greater profits through economy of scale, Virgin Atlantic has to expand by opening new routes. The implementation of this will require strategic financial planning and adjustment of the company structure. It is likely that this process will take several years; however, this change is necessary to increase Virgin...
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...The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ................................................................................................. 3 Target Market and Business Model ................................................................................................ 3 Current Product............................................................................................................................... 4 Southwest’s Culture ........................................................................................................................ 5 Mission Statement .......................................................................................................................... 5 Mission and Corporate Culture....................................................................................................... 6 Employees and the Mission ............................................................................................................ 7 The Importance of the Mission Statement and Corporate Vision................................................... 7 Strategic Analysis .................
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...Classic airlines is one of the largest airlines and commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (University of Phoenix Material, 2009).They continue to be a very profitable company, but with rising overhead costs and the current state of the economy, classic airlines has experience some set back. There are many internal and external pressures that contribute to Classic Airlines current crisis. In order to address this crisis, Classic Airlines must use the basic problem solving method. They must also utilize their internal marketing resources and explore external marketing options to find a profitable solution. Below is a diagram of the problem solving method (BPI Consulting, 2004): The first step is to define the problem. “Step 1 is a critical step in the problem solving process; it determines the overall focus of the project (BPI Consulting, 2004)”. Classic Airlines is a profitable company, however, they have experienced a decline in their market shares. This decrease in shares has resulted in negative press from the media and heavy criticism from market shareholders. These results have greatly affected employee morale, which can influence productivity. Another problem is the rising overhead costs which includes fuel and labor cost. Classic Airlines has implemented a cross-company budget cut for all departments. Classic Airlines has also seen a decrease in the enrollment of their classic rewards program. This means that...
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...questions in the provided space (rectangle). The space will expand to accommodate your writing. Please use “Marriage at 30,000 Feet”as the basis for answering questions 1 through 5. 1. (35 points) Combining Continental and United Airlines is tremendously difficult, largely because of the enormous number of things two airlines may do differently. Employees from both Continental and United are working side by side to answer many questions. Will passengers board flights back to front or window, middle, then aisle? Will miniature ponies be allowed? What information will be printed on a boarding pass? What direction will dog crates be faced when loaded in to cargo? Continental and United business architectures are unique to each company. Describe specifically what “the new United,” as a merged airline, must do to form the business architecture for the largest carrier in the world. Make sure you include in your description the role of standardization and integration in transition from the current As-Is to the emerging To-Be business model. | 2. (35 points) Information technology tends to be the thorniest part of an airline merger. The flight information systems and the passenger information system are critical applications (systems) supporting airline operation. Jeff Smisek, Continental CEO, was named the head of “the new United,” and he has heard a lot about cloud computing and virtualization. Mr. Smisek has learned that competitors are implementing cloud computing and virtualization...
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