...1. Mexico has always portrayed itself as one of the most pro-trade countries in the world. For instance, we have a free trade agreement with the United States and Canada, and another one with the European Union. We are active members of the WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple bilateral agreements with many nations, most of them deemed “strategic”. Answer the next two questions in your own words: a. What are the potential costs and benefits of adopting such a free-trade strategy? The benefits when a country trades freely with other nations, consumers in that country have access to a wider variety of products. Some of these products may not otherwise be available if the consumers were limited to domestically manufactured goods. Or these products may be prohibitively expensive without a free trade arrangement. Also can boost the quality of life along the countries' shared border. This is the case with the Texas-Mexico border. After the creation of NAFTA, the area servicing the transfer of goods between the U.S. and Mexico experienced an economic boom. Five years after the free trade agreement, John Adams Jr., vice chairman of the Industry Sector Advisory Council, noted that this border area was growing economically at a faster rate than any other region on the planet. And the potential costs U.S. exports tend to create jobs in this country, but increases in imports tend to reduce jobs because the imports displace goods that...
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...We have a positive fundamental outlook for the airline industry. In 2009, the S&P Airlines Index increased 27.43%, versus a 29.03% rise for the S&P 500 The airline industry is highly cyclical, and the level of demand for air travel is correlated to the strength of the U.S. and global economies. According to the S&P, it is expected that an improving U.S. economy continues to drive improving air travel demand over the next few months beginning at the end of 2009. At the end of 2009, the reported traffic statistics at many major carriers showed improving demand and revenues . Therefore, it is reasonable that the U.S. airline industry could be undergoing the start of fundamental industry demand improvement. In addition, since the industry has already reduced capacity levels, it should be able to raise fares as passenger travel demand improves. Even though oil and jet fuel prices is up sharply from 52-week lows, they are still notably lower than in 2008 , which should ease cash usage throughout the group and allow good entry points into new fuel hedge positions, thereby offering protection if oil spikes again. According to S&P, the top 10 U.S. carriers lost about $5 billion in 2009, after a $4 billion loss in 2008, as the benefit of lower jet fuel costs was eroded by lower airfares and falling passenger levels. Results in 2008 were impacted by record high oil prices. Airlines have cut fares in response to weakening demand, but we think recent cuts to domestic and international...
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...An Analysis Report on Barriers to Globalization and External Factors Affecting Kenya Airways Professor: Student Name: Date of submission: Executive Summary Stiff competition, technological changes and the political and legal environment are the main factors determining the success of a company operating in the airline industry. Kenya Airways is subject to these factors and must find the best solution to help mitigate the adverse effects of these factors. It will help improve efficiency, effectiveness and the competitiveness of the company. Liberalization of many economies accompanied by globalization has turned the face of doing business across the globe. It has led to the essence of competition among organization for prosperity and survival. Technological aspects have also improved communication across the globe leading to integrated systems connecting companies and businesses. The report is an overview of the external environmental factors affecting Kenya Airways that is in the service sector in the Airline industry. The service sector requires up to date technology and is easily affected by the external environmental factors. These factors relate to the political stability, legal environment, social, cultural well-being, and the state of technology. Table of Contents Executive Summary…………………………………………………………….2 1.0 Introduction………………………………………………………………….4 2.0 Task 1 ………………………………………………………………………….5 2.1 Macro Environment analysis for Kenya Airways…………………………………...
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...Airline Global Alliances May 11, 2015 Table of Contents Abstract 3 Introduction of Strategic Alliances in Airline Industry 4 Evaluation of Alliances in Airline Industry 4 Purposes of Alliance between Airlines 5 Disadvantage of Alliance between Airlines 6 Major Airline Alliances in the World 6 Alliances help Airlines to Achieve Comparative Advantage 7 Sky Team Alliance 8 Airline Alliances Enhance the CSR 9 Conclusion 10 References 12 Abstract Now a days the term global alliance is widely used in every business, but its presence is more significant in airline industry. The strategic alliances in airline industry are global in nature. The past deregulation impacted on strategic alliances positively, industry is freer to set routes and cooperation’s, due to oil price hike the cooperation of airline firms was unavoidable. The alliances help generating traffic between an airline and other parties that are partner. The European alliances were threatened by US alliances; in such scenarios United Airlines and British Airlines came in contract to avoid threats from US airlines. The benefits of strategies alliances are to gain foothold in any country like many airlines did in Europe, while at the same time is to establish global presence. Strategic alliance and mergers of firms acts as marketing technique in airline industry. Many of the European airlines bought stakes from the...
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...current market and outrun its competitors for its long-term survival. Virgin Australia should optimise opportunities and remain competitive by either strengthening its alliance with SIA or outsourcing to a specialist company in ground handling. The key challenge for the company is to create strategies that ensures effectiveness. The strategies will draw upon previous internal and external analysis conducted and focus on developing strategic alliances and strategic outsourcing. This report analyses the benefits and limitations of these potential strategies and provides practical recommendations to ensure long-term strategic sustainability. The results of the evaluation between the two strategies illustrate that the first strategy is more appropriate for Virgin to be sustainable in the long-term. There are several advantages that Virgin possesses which includes its strategic alliance’s strong position in the Asian market, and its ability to integrate newly planned flight routes. This means that Virgin is able to benefit from the strengths of its alliance. Moreover, it is recommended that the management team starts controlling the flow of certain information in the workplace to ensure that both parties mutually benefit from the relationship. This will also reduce the risks associated with strategic alliances. The company should also start dominating the Australia – Asia flight routes to prevent major airline companies from being ahead in the...
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...Appendices, and 9. Any footnotes. Coast4Life Cruises Business Case Analysis Business Case Analysis Introduction Coast4Life Inc. was incorporated federally on June 3, 2000, and is in the business of offering ocean cruises along the Canadian west coast, with stops at interesting ports of call in British Columbia. The business has a September 30 year end. In 2007, the original owners sold all their Coast4Life shares to the senior management group. Between 2001 and 2010, the company grew steadily from 135 to 574 employees and from $9.4 million to more than $55.7 million in revenue. Vision Coast4Life will be the first choice for vacationers who are seeking a safe, enjoyable and unique cruise experience in the northeastern Pacific Ocean. Mission Coast4Life meets the needs of North American vacationers by offering safe, enjoyable and unique cruises along the coast of British Columbia at affordable prices and at a high-quality level of service. Coast4Life also strives to minimize the effects of cruising on the ecology along the BC coast and maximize the safety of customers, staff and marine life by ensuring that the ships used are well maintained and that environmental and safety regulations are not only met, but exceeded. Quantitative analysis The main revenues in the Coast4Life are generated for the most...
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...Management and Leadership Paper Charles Lee University of Phoenix United Airlines presently manages nearly 3,000 flights daily on United, and United Express. This includes more than 200 domestic and international flights from Los Angeles, San Francisco, Washington D.C., Chicago, and Denver. United is recognized as one of the largest international airlines in the United States, enjoying global air rights in the Asia-Pacific area, in Europe, and in Latin America (United Air Lines, 2009). United’s stock is presently listed under the Stock Market symbol UAUA. United Airlines is devoted to cost containment, improved revenue, and sustainable operations that will enhance a very competitive margin. United’s selection of services and products are designed to ensure customers receive the very best price. United also invests substantially in their employees to provide the right amount of accountability that will ensure operations are at peak-performance levels (United Air Lines, 2009). Healthy Work Culture United Airlines exerts tremendous amounts of time and energy working and negotiating with, unions and labor-management task forces negotiating with workers seeking to recoup bankruptcy concessions there is some cause for concern in the area of bankruptcy. The relations between United Airlines and labor-management have intensified as talks regarding contracts become sober in a time of financial loss for the airline. The recession forced United Airlines, along with many others...
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...1. Introduction Good Supply Chain Management practices and properly designed Supply Chain Strategy plays a very crucial role in the success of any organization. Supply Chain Managements concept is formed around two nucleus ideas. According to the first idea, nearly all products that make to an end user signify the collective effort of several organizations. Cumulatively, these organizations are referred to as the supply chain. Based on second idea, though supply chains have been in existence for quite a long time now, the majority of the organizations closely monitored to what was taking place in the supply chain within their four walls. A small number of companies understood and managed the entire chain of activities in their supply chain that finally delivered goods to the ending stage of supply chain that is the customer. This resulted in disorganized and repeatedly ineffective supply chains (R. Handfield, 2011). Supply chain management now can be defined as an active management of supply chain activities to maximize consumer value and attain a sustainable competitive advantage. It characterizes a cognizant endeavor by the supply chain companies to build up and run supply chains in the most effective & efficient ways possible. Like any other organization, supply chain also plays a very important role in the airline industry. Currently in the airline industry, various links in the supply chain are in tension leading to minimized profits, heavy losses and in some cases...
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...the world. US Airways was founded in 1937 as All American Aviation and in 1996 commenced operations as US Airways with its parent company being US Airways group. The headquarters is located in Tempe Arizona. US Airways operates an intensive international and domestic network and has 198 destinations throughout North and South America, Middle East and Europe. Us Airways is a member of Star Alliance Network with a fleet of 346 mainline jet aircrafts and 256 regional jet and turbo prop aircrafts. Us Airways has a shuttle that provides hourly service between Boston, New York, and Washington, D.C. that is known as US Airways Express that is operated by contract and subsidiary airline companies. As of January 2013 US Airways employed 32,213 individuals worldwide and operated 3,028 daily flights. American Airlines, Inc. is owned by the AMR Corporation headquartered in Fort Worth, Texas. It operates and extensive international and domestic network as US Airways. American Airlines has scheduled flights throughout North America, South America, Europe, the Caribbean, and Asia/Pacific. The Dallas/Fort Worth International Airport is the airlines largest hub with American Airlines accounting for about 85% of the traffic and 83% of landing fees and travel to more destinations than any other hub. American Airlines operates maintenance bases at Tulsa, and Fort Worth. Fort Worth however was slotted to close as of December 2012. Before being headquartered in Fort Worth American...
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...Mary Ann Bellinger Eng 121 Instructor McKoy -Taylor Descriptive essay My First Cruise I remember like it was yesterday the year I decided to take my first vacation without the kids. My fiancé and I went on a week long cruise to Mexico. Neither one of us had ever been on a cruise so it was a new experience for the both of us. We needed to be in New Orleans for departure so we drove the six hours from Jonesboro, Arkansas to New Orleans, Louisiana. My fiancé and I used this time to talk, make plans for the future and fantasize about our week away from the kids and work. We left before the sun was fully up when the sky is blue with fluffy white clouds and not a sign of rain anywhere not to mention Hurricane Irene. We enjoyed the night on bourbon street eating famous Louisiana gumbo and poor boy sandwiches, drinking wine and sight seeing. We rode the trolley through the famous garden district. We walked the pier where we to board our cruise ship. There was so many cruise ships docked there some were coming in others were waiting to depart. The boarding of cruise ships takes as long as boarding an airplane. First you have to check in then go to your boarding area. Then you have to go through customs and check your luggage that is not seen again until you arrive at your cabin where it will be waiting for you. From there everyone is to meet at the emergency exits to hear the proper procedures to follow in case of an emergency. After the brief introduction...
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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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...FOM Fachhochschule für Oekonomie & Management Frankfurt University of Applied Sciences Master of Business Administration First Semester Module: Economics Assignment Two: Economics of Alliance Airlines Prof. Dr. Andreas Löhr Author: Boris Olarte Arque Student id: 252547 Frankfurt am Main, 16th July 2010 Table of Contents List of Abbreviations III List of Figures IV 1 Introduction 1 2 Capital Investment 2 2.1. The Airline Market 4 2.2 High Cash Flow 9 3 Liberalization 10 4 Conclusion 11 List of references 14 Internet Sources 14 Further Literature 14 Appendix 15 List of Abbreviations ASM: Available Seat Mile OAG: Official Airline Guide IATA International Air Transportation Association ICAO International Civil Aviation Organization List of Figures Figure 1: Demand Curve….………....…..................................................................3 Figure 2: Supply Curve……………………….………….........................................4 Figure 3: One World airline members ……………………......................................5 Figure 4: SkyTeam airline members ……………………........................................6 Figure 5: Star Alliance Statistics…………………………………………….……..7 Figure 6: Market Share of the Alliances…................................................................8 1 Introduction The airline industry is classified in the third economic sector the same as services because that is what is about. Airlines perform...
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...United Continental Holdings, Inc. Business Analysis Melissa Alamilla MGT 521 May 16, 2012 J. Merryman United Continental Holdings, Inc. Business Analysis The airline industry has had a few disappointments at the market with the economy fluctuations. Since September the 11th, the airlines are struggling to recover from all the destruction that the terrorist did to the airline industry. Customer’s confidence, high fuel prices, environmental problems, and customer service issues are just a few things that have affected the airlines popularity in the public’s eye. With all that said, how would a mutual fund investor feel about investing in an airline? The mutual funds manager is looking at United Continental Holdings, Inc. as a future investment. The mutual funds investor will being with a complete business analysis of the airline. He will investigate how well the airline is doing. He will look at their annual business reports (balance sheet, statement of cash flow, and income statement); complete a SWOT analysis showing the strengths, weakness, opportunities, and threats, global strategies and their technological advantages. After completion of those items, he will check how well the airlines operational processes and procedures are, the airline practices, and how the airlines product and services compare to their competitors. The mutual funds manager will need some background information on United Continental Holdings, Inc. In 2010, an historic merger...
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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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...E-Business advantages for Airline Industries Analysis of the supply chain structure of the Airline Industry to highlight the advantages of the e–Business systems Index E-Business advantages for Airline Industries ................................................................................................ 1 Introduction and scope ............................................................................................................................... 2 The Airline Industry .................................................................................................................................. 2 External actors ........................................................................................................................................... 2 I.C.A.O................................................................................................................................................... 3 I.A.T.A. .................................................................................................................................................. 3 EUROCONTROL.................................................................................................................................. 4 The digital flight, how the e-business revolutionized the Airline Industry ...............................................4 Can we make the journey experience different? Should we do it?........................................................ 5 ...
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