...United Airlines vs. Delta Airlines Ushma S. Patel 3/31/2013 Ushma821@gmail.com Work Cited 1. Introduction 3 2. United Airlines vs Delta Airlines 4 3. The Four-Frame Model 8 4. SWOT Analysis- United Airlines 12 5. SWOT Analysis- Delta Airlines 14 6. Analysis 15 7. Recommedations 16 8. Work Cited 17 INTRODUCTION In evaluating two companies who have had to restructure their business models to evolve to changing times I choose United Airlines and Delta Airlines. Both companies filled for bankruptcy in the early 2000’s and since then have nursed their company back to health and to becoming the industries leaders for airlines. I choose these two airlines because I frequently use them to travel. My family are also huge travelers and I spend a lot of time looking for the best deals for them. United Airlines filed for bankruptcy in 2002 and would become the longest case in the United States lasting until 2006. The airline was able to get their reorganization plan approved by the United States government by restructuring their management plan. In the restructure they also changed how their bonus plan was organized for successful executives. They also had to evaluate their employee’s efficiency while on the clock. They were able to reduce their workforce from 100,000 employees to half of that. Finally the airline had to revaluate the routes they were taking and then see which ones...
Words: 2958 - Pages: 12
...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...
Words: 2940 - Pages: 12
...UNITED AIRLINES SLEPT ANALYSIS Q1: What is meant by the external business environment and what are its main components? External environment refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. The external environment of an organization is those factors outside the company that affect the company's ability to function. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Some main components of external environment are: Customers Government Economy Competition Public Opinion Growing use of internet Law and Order situation Q2: Show how changes in one of these components have had a significant impact on airlines in recent years? A major change in the airline environment since September 11th has been in airport security, as a result of political and legal pressures. Airlines today have to operate in a much more security conscious environment and this has considerable logistical and cost implications for airlines, including the development of much more security conscious booking and baggage handling procedures, the requirement to use security staff on cross Atlantic routes has also added to costs. Q3: How significant is competition in the external environment? Competition is always important in the external business environment. It is particularly important in the airline business where there are a number...
Words: 952 - Pages: 4
...Reputation The US airline industry has been criticized for poor customer services, inefficient operations, and frequent flight delays for quite long time. Poor reputation seems to have been a typical characteristic of the whole industry. According to the customer satisfaction survey conducted by ACSI in 2014, airline industry ranked at the 40th place among all the 43 industries involved, ahead of only Internet service providers, social network corporations, and cable TV operators. 1.2. Intricate Challenges These years, the US airline industry suffered a lot from plenty of problems. The 9.11 attacks had dealt a crushing blow to the whole industry which made the airline lose much money and some of them even filed for bankruptcy. With teleconferences used to substitute for in-person meetings, travel budgets for businesses declined which reduced the airline’ revenues from first-class and business-class passengers and lowered the profit margin. Besides, the Great Recession damaged passengers’ purchasing power as well as their willingness to purchase. Data shows the US domestic average itinerary fare experienced an obvious downward trend from the year 2000. And the skyrocketing oil price increased airline’s cost to a great degree as for every one percent increase of crude oil price, airline’s net profit would decrease by more than two percent. As a response, many airlines reduced scheduled fights, cut employees and reduced wages. Even so, it was hard for airlines to escape from the...
Words: 2149 - Pages: 9
...research companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they were two different companies this will bring on big changes when they finally merger together. History In In the year of 2008 United Airlines CEO Glenn F. Tilton and Continental Airlines, CEO Jeffrey A. Smisek began to talk about merging both company together in order to become the largest merger ever to take place between two airlines. However, once Continental found out about United Airlines declining financial statues they declined their offer. The talk of United negotiating a merger with US Airways stunned the CEO and board members of Continental Airlines. Predictor stated that United Airlines used this tactic to allure Continent Airline to renegotiate the merger that was discussed in 2008. In 2010 a big announcement was presented stating that United and Continental airlines were merging together as one Airline Company. Major of the management team will consist of Continental...
Words: 1688 - Pages: 7
...Case Analysis Term Paper United Airlines Flight 173 Embry-Riddle Aeronautical University SFTY 320 I. Summary On December 28, 1978, United Airlines flight 173, a McDonnell-Douglas DC-8-61 was a scheduled flight from John F. Kennedy International Airport, New York, to Portland International Airport in Oregon, with an en route stop at Denver, Colorado. When the DC-8 was descending through about 8,000 ft on its way to Portland, the first officer, who was flying the aircraft, requested the wing flaps be extended to 15 degrees, then asked that the landing gear be lowered. As the landing gear extended, an unusual sound was heard and the aircraft yawed. Upon request, Portland approach then vectored the aircraft in a holding pattern southeast of the airport. After about an hour and a half of circling southeast of the airfield while the flight crew coped with the landing gear malfunction and prepared the passengers for a possible emergency landing, the captain finally decided to begin the approach to runway 28L. The plane crashed during the approach about 6 nautical miles southeast of the airport in a wooded populated of suburban Portland due to fuel exhaustion. The aircraft was destroyed and thankfully because there was no fuel in the fuel tanks, there was no fire. Of the 181 passengers and 8 crewmembers aboard, 8 passengers, the flight engineer, and a flight attendant were killed and 21 passengers and 2 crewmembers were seriously injured (National Transportation Safety Board...
Words: 3138 - Pages: 13
...United Airlines Mission Statement is what follows: “We are committed to providing a level of service to our customers that makes us a leader in the airline industry. We understand that to do this we need to have a product we are proud of and employees who like coming to work every day. Our goal is to make every flight a positive experience for our customers. Our United Customer Commitment explains our specific service commitments so that we can continue a high level of performance and improve wherever possible. The commitment explains our policies in a clear, consistent and understandable fashion. We have detailed training programs and system enhancements to support our employees in meeting these commitments, and we measure...
Words: 487 - Pages: 2
...Managerial Decision: United Airlines by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 10, 2013 Abstract United Airlines is one of many airlines that look to capitalize on it’s ability to provide air service to the consumer. Like other airlines, it is challenged to be creative and profitable in a changing market. The creativity may involve creating flights or analyzing the cost associated with providing a service. This paper offers some insight on the case study of United Airlines and provides some analysis on the managerial decisions within the company. The scenario given in the case study speaks about a situation of declining profits and the costs of operating were growing. A dialogue of cost and market organization will be noted and the recommended managerial decision of; whether the airline should run a specific flight or not. Introduction When making a business decision, many factors should be considered. The market structures in the economy are important in seeking whether the company is reasonable to continue to operate or not. The structure of the market or characteristics of the market environment that United Airline operates in is competitive market. Competition market is an economics term that refers to firms that have no influence on market price and take it as given. (Brickley Smith & Zimmerman, 2009). For United Airlines to operate involves the...
Words: 848 - Pages: 4
...the public relationship outfall of United Airline by considering the issues and causes and choosing a recommended solution on the base of decision criteria. Methods used in this report include empirical and theoretical analysis. In aviation industry, airlines experienced a cost pressure and that is the main reason that they cut cost wherever possible. Ethical issues and stakeholders’ benefit would be considered and play key roles in decision criteria to value the solution. United Airline would be suggested to establish a temporary team to solve the short-term crisis and invest in customer service departments to prevent similar issues in the future. The balance between cost and profit would be achieved to save the reputation and earn the profit, which would maximize the stakeholders’ value. Limitation of this report could be found in the scope of decision criteria. Some main points are covered and other attributes are not. Introduction The purpose of this report is to deal with the customer service issues facing United Airline. The causes would be discussed and the decision criteria would be considered to measure the alternatives which could be taken to address these issues. Moreover, recommended solution would be derived as the best of the alternatives with supported reasons. Finally, suggestions would be provided on how to implement the solution as well as the related implications. Issues United Airline suffered a public relationship nightmare...
Words: 2164 - Pages: 9
...reason could be that JFK is JetBlue Airways hub and by proximity LGA could be considered to have similar hub factors. This research explored the hub effect on fares. However, other factors should be explored and analyzed to establish and pin down the specific reasons behind the fare differences between the NY metropolitan airports. Introduction JetBlue is a low cost carrier with its headquarters in Long Island City. It uses JFK as its hub and operates to 75 destinations in multiple cities. It is the largest airline in the Northeast of United States. It flies to different destinations out of the three major airports (JFK, EWR and LGA) serving New York/New Jersey metropolitan area. Given the relative proximity of these airports, one would assume that JetBlue has similar fares to same destinations. After deregulation of 1978, airline pricing increasingly became complicated as opposed to the CAB pricing system based on cost per available seat mile. Factors affecting airline pricing strategies can be grouped into five factors; costs, demand, supply, competition and rates and taxes. Therefore any factors affecting this group of factors can potentially affect the fares of a particular flight or the pricing in a specific market. Airports...
Words: 906 - Pages: 4
...The 21st Century Jet The Boeing 777 Multimedia Case Study Shad H Shokralla Submitted in partial fulfillment of the requirements for the degree of Master of Science in Mechanical Engineering from the University of California at Berkeley December 18, 1995 Research Advisor: Professor Alice M. Agogino Berkeley Expert Systems Technology Laboratory On-line Version URL: main.html Abstract Multimedia case studies have been shown to be an effective way of documenting and teaching best design practices. This is a case study of the changes that the Boeing Commercial Aircraft Company made in the way they design and build airplanes. The 777 is the first jet that Boeing has created using this methodology. The changes were very dramatic and encompassed many areas, including technical, organizational and administrative changes. Boeing is touting the 777 as more than just a product, but as a new process. Although the technical innovations were numerous, what made the 777 project unique were the other changes Boeing instituted for this design/build effort. It was the first 100% digitally designed and pre-assembled airplane made by Boeing. Concurrent engineering, the concept of “Working Together”, was an integral part of the new philosophy and nearly 240 Design/Build teams were used through-out the process. The teams included design, manufacturing, customer and supplier personnel from the start. Designing and building a new...
Words: 7527 - Pages: 31
...proved to be the perfect testing ground for a companywide change in the way Boeing did its business. Philip Condit and the Development of the 777 In 1988; Boeing was looking to compete with the new jetliners that Airbus had released. The current CEO, Frank Shrontz, was planning on modifying the 767 to accommodate a longer range, an increase of passengers, and a payload to match what airbus was producing. To find out what United Airlines was looking for; Frank Shrontz sent Philip Condit (who at that time was the Executive Vice President of Boeing’s commercial airlines group) to talk with the Vice President of United Airlines; Frank Guyette. The meeting ended with the message that United Airlines did not want a modified aircraft. They wanted what the other airlines were asking for; a new and technologically advanced aircraft. Frank Shrontz agreed; and in 1989 announced the 777 project with Philip Condit in charge (Pearce, Robinson, 2003). The external environment in 1989 was certainly in Boeings favor over Airbus. The economy was growing in the United States; and far better than in Europe. The political climate effecting the competition was in Airbus’s favor; due to the subsidies for manufacturing that airbus enjoyed. The cost of developing a...
Words: 2062 - Pages: 9
...American Association of Independent Music Conference San Francisco, California August 2015 The American Association of Independent Music would like to welcome you to San Francisco, California. The following information packet will be your guide to our August 2015 convention to celebrate independent music producers and up and coming names in the industry. We thank you for choosing to attend our conference and are excited to meet you in San Francisco! CVB: San Francisco Travel The San Francisco Travel Association, which acts as the city’s Convention & Visitors Bureau, was originally founded as the San Francisco Convention and Tourist League in 1909. After an extremely destructive earthquake and fire in 1906, the non-profit local business association was created to “reclaim the City’s position as a world-class destination” (San Francisco Travel). Today, the mission of the Association is “to enhance the local economy by marketing San Francisco and the Bay Area as a premier destination for conventions, meetings, events, and leisure travel” (San Francisco Travel). They are a private, not-for-profit, membership organization that is led by a Board of Directors made up of 45 business leaders of various companies, elected by the membership. In 2003 the Association set up a charitable foundation with the goal of raising scholarship money for students enrolled in local hospitality management programs and to produce more educational programs. The association’s executive team is...
Words: 5675 - Pages: 23
...97 Total: C$2,309.27 All prices include taxes & fees and are quoted in Canadian dollars YHZ 8:00am Air Canada 607 Economy/Coach (M) YYZ 9:27am 2h 27m Your Savings Layover: 2h 13m Toronto Oranjestad 5h 5m Best Price Guarantee Congratulations! You're getting the lowest possible rate. We guarantee it. YYZ 11:40am Air Canada 1294 Economy/Coach (M) October 10, 2013 - Return Oranjestad AUA 4:45pm 2 stops Newark Total travel time : 17h 33m 4h 52m AUA 2:59pm UNITED 1039 Economy/Coach (L) EWR 7:51pm Important Trip Information We want you to know this trip has the following restrictions regarding your flight and hotel. Layover: 1h 41m Newark Toronto 1h 43m EWR 9:32pm YYZ 11:15pm UNITED 5676 Operated by /EXPRESSJET AIRLINES DBA UNITED EXPRESS Economy/Coach (L) Layover: 7h 15m Toronto Halifax 2h 2m Tickets are nonrefundable and nontransferable. A fee of US$200.00 per ticket is charged for itinerary changes. Name changes are not allowed. The airline may charge additional fees for checked baggage or other...
Words: 538 - Pages: 3
...compete with the increasing number of competitors in the market for aeroplanes, jets and military space machines. In 1997 Boeing merged with McDonnell Douglas to expand its manufacturing and marketing strategies. The company has competed globally and has emerged the largest aircraft in the world in terms of revenues, orders and delivered products. It is has achieved the position as the third largest aerospace in defense contracts. Boeing has dominated the market for aircraft and has the highest value of exports in the economy of the United States (Herzog, 1994). The company started by manufacturing seaplanes. William E. Boeing is an entrepreneur who initially worked in the timber industry. She accumulated wealth and knowledge which made him start the aircraft company. With the intention of expanding the product range, the company established Boeing Air Transport in 1927. Later on in 1933, the Boeing 247 was established (Eckley, 1991). The airline model fast, safe, and could fly easily compared to other passenger aircraft in the market by then. Boeing 247 created competition in the market since it was...
Words: 473 - Pages: 2
