...& Kolkatta. Focus Cities- Cochin, Pune, Ahmedabad, Hydrabad, Indore, Jaipur & many more. International Destinations- London, Colombo, Dubai, Singapore, Bangkok, Dhaka, Hog Kong, Kuala Lumpur & Maldives. • Demographic Segmentation- Gender- both Male & Female Social Classes- Age group from 25 to 45 years. Income Level- Higher and Higher-Middle Income group. Targeting: • Kingfisher First Class- company executives • Kingfisher Class- Middle, Upper-Middle, Lower-Upper segment. • Positioning: • Lifestyle- FunlinersExperience, Designer Interiors • Benefits- last time booking facilities, refund in case of cancellation, In-flight Entertainments and many more • Quality- World class service provider, comfortable seats, etc • PESTEL Analysis Political Regulators: Directorate General of Civil Aviation(DGCA) - controls flying Licenses, pilots, certifying aircrafts and procedures to govern airports & airspace. Airport Authority of India(AAI) • Assigned the responsibility of managing National and International airports and administration through Air Traffic Control(ATC). FDI ceiling in Airlines sector is 49% currently. FDI limits: - 100% for Greenfield airports - 74% for the existing airports - 100% for NRI’s. • Economic Factors Contribution to the Indian Economy Rising cost of fuel Investment in the sector of Aviation. The growth of middle income group family affects the Aviation sector Shortage of Infrastructure capacity Social Factors Development of...
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...JetBlue Airways: Managing Growth Chathura Wathuge 103739845 75-498-02 Problem Airline industry is a highly unpredictable industry with much complexity. The main problem JetBlue is facing is how to manage its growth with the unpredictable nature of the industry and high expenses in the industry. Another issue is how to handle the complications that arise from the introduction of the new E190 planes. The CEO, David Barger must decide on the best way to slow down the capacity growth of the airlines, so that the company won't grow itself to death. External Environment Industry The airline industry is a part of the overall transportation industry and it encompasses of low-cost carriers (LCC) and legacy carriers. JetBlue mainly compete in the category of low-cost carriers and it conducts both domestic and regional operations. It is a very competitive industry to enter or exit because of the expensive nature of the industry. A firm that tries to enter the industry will have to make substantial capital investments in order to compete in the industry Key Success Factors * Cost leadership - Cost leadership in this industry is vital. By obtaining cost leadership, an airline is able to offer its customers lower rates. * Customer service - Offering an excellent customer service is crucial in the airline industry. This also includes trying to accommodate all customer needs and wants, in relation to his/her travel requirements. * Employee relations - A firm's human...
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...Contemporary Developments in Business and Management 1.0 Executive Summary This report is about the growth of a Malaysian brand low cost carrier - AirAsia Berhad on how they started this business and bring a huge change in the low cost carrier history globally. This report will discuss on how AirAsia business structure is, what is their culture and the expectation to maintain as well as get into the right track of tough time in airline services. The concept of low cost air travel was then new in Malaysia and how does they turned a loss to profit just in seven years? 2.0 Organization Overview AirAsia is the world most leading low cost carrier airline now as their name had earned a lot of recognition worldwide because consumer as their TOP priority with the tagline of "Now Everyone Can Fly", AirAsia has made flying affordable for more than 61million guest. AirAsia started their business in year 2001 with only MYR1.00 with the partnership with Tune Air Sdn Bhd and AirAsia was remodeled into a low cost carrier by January 2002 where their mission is to make air travel much more affordable for Malaysians took flight.Valued at MYR2.3 billion, AirAsia is today award winning and the largest low cost carrier in Asia. From a two aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 78 aircraft that flies to over 60 domestic and international destinations. The airline has carried, thus far, over 61 million guests since its first day of operation. Low fares...
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...Global Industry Trends & Future Outlook The global airline industry basically comprises of air transport service providers of both passengers and cargo. According to the International Air Transport Association (IATA), the global airline industry has doubled its revenue over the last decade, from US$369 billion in 2004 to a projected US$746 billion in 2014 (PwC, 2015). According to the IBISWorld Industry Report (2015), the global airline industry looks set to increase its revenue growth by 1.2% to $783 billion. In the recent 2015 IATA’s Annual Review, we have witnessed good profit in the global airline industry with a strong net profit of US$16.4 billion in 2014. Through the 1980s and 1990s, the emergence of low-cost carriers (LCC) has a big...
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...STRATEGIC MANAGEMENT (EBS5103) CASE STUDY INSTRUCTOR: Dr. Ahmet Beşkese BAHÇEŞEHİR UNIVERSITY May 2015 1. INTRODUCTION This report is based on strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission for The Church of Jesus Christ of Latter-day Saints in Rio de Janeiro, Brazil for two years. He made his beginning in establishing own business by renting out condominiums in Hawaii. Then he established his own travel agency and began chartering flights from Salt Lake City to the islands. He was co-founder with June Morris of charter airline Morris Air, a low-fare airline. From 1984 to 1988, he was an Executive Vice President of Morris Air. From 1988 to 1994, he was the President of Morris Air Corporation. In 1993, Morris Air was then acquired by Southwest Airlines for $129 million. For 5 years, he worked on the Executive Planning Committee at Southwest Airlines. By 1994, he left Southwest Airlines after signing a five year noncompeting agreement. With his experience of aviation, he established a company named Open Skies which a touch screen airline reservation and check-in systems company that acquired by Hewlett Packard in 1999. At the same time, acted as a consultant to another start-up...
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...UNIVERSIDAD ESAN MAESTRÍA EN SUPPLY CHAIN MANAGEMENT 2012 - LA SALLE TRABAJO FINAL EMPRESA: DIVEMOTOR DETERMINAR EL SOBRE STOCK EN EL PRINCIPAL DEALER (CANADA) CURSO: MÉTODOS DE OPTIMIZACIÓN DOCENTE: ALDO BRESANI Alumno: * CALDERON MUSANTE, RODRIGO INDICE 1. Resumen ejecutivo ______________________________________ 3 2. Antecedentes ______________________________________ 4 3. Objetivo ______________________________________ 5 4. Limitaciones ______________________________________ 6 5. Análisis ______________________________________ 7 6. Conclusiones ______________________________________ 16 7. Recomendaciones ______________________________________ 17 RESUMEN EJECUTIVO Divemotor, es una empresa líder en el sector automotriz dedicada a la comercialización y servicios de post venta de autos, buses y camiones. Representa en el Perú a Daimler (Mercedes-Benz, Freightliner, Western Star, Detroit Diesel) y Chrysler Group (Chrysler, Jeep, Dodge). Para asegurar una respuesta eficaz y rápida a cualquier requerimiento del cliente, Divemotor mantiene un stock de repuestos que supera los 50000 ítems. La empresa cuenta con diferentes sucursales a nivel Nacional: * Región Centro (Lima) cuenta con el 75% de las ventas a nivel nacional * Región Norte (Trujillo). * Región Sur (Arequipa). El Dealer Canadá es el que mayor participación en ventas de repuestos tiene, contando con el 65% de estas...
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...and rude behavior consequently causing delays among flights and irate customers. In addition to the behavioral issues, several planes have had to make emergency landings due to loose seats and other incidents of insufficient inspection. In July, five AA passengers had to be hospitalized after encountering turbulence during a flight. American Airlines’ fleet of aircrafts has an average age of 15 years. These aged carriers are inefficient energy consumers and multiply costs. American Airlines has openly declared their opposition to a merger with US Airways, although, the final decision rests with AMR and negotiations are still in progress. A merger between American Airlines and US Airways would decrease competition among the market and contribute to a rise in flight prices. However, with the existing mergers already controlling the market, it seems that the merger is inevitable if American Airlines wishes to stay afloat. A merger with US Airways would mean a new network not previously accessible. Also, successful pilot...
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...court approval to combine with US Airways which will be the world’s biggest airline. This whole transaction is consider to be a merger because both Airline companies are agreeing to pool their operations and create a new entity. There are no indications that neither of these two companies are buying each other, they are just going to operate under one same management. This merging deal would be beneficial for both companies because of many reasons such as: lower cost structure, business experience, reduced rivalry and increased bargaining power over suppliers and buyers. Lower cost structure: by pooling such a two huge airline companies, US Airways and American Airlines can reach economies of scale and be more efficient with lowering their cost structure. Business experience: both of these companies have been operating for a long period of time. Few years ago, American Airlines filed for Chapter 11 bankruptcy which resulted in cutting back labor and other cost. This specific economic circumstance can be beneficial learning curve and can lead to a better business practice in the future. Reduced rivalry: after this merger is official in fall of this year, American Airlines and US Airways are going to be the biggest airline company. They don’t have to compete with one another and cash proceeds are going to go to only one bank account instead of two. Increased bargaining power over suppliers and buyers: American Airlines and US Airways combined size will give...
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...Journal of Industrial Organization Education Volume 5, Issue 1 2010 Article 1 United-Continental Merger Robert J. Carbaugh, Central Washington University Koushik Ghosh, Central Washington University Recommended Citation: Carbaugh, Robert J. and Ghosh, Koushik (2010) "United-Continental Merger," Journal of Industrial Organization Education: Vol. 5: Iss. 1, Article 1. DOI: 10.2202/1935-5041.1034 Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM United-Continental Merger Robert J. Carbaugh and Koushik Ghosh Abstract This case study discusses the nature and likely effects of the proposed merger between United and Continental. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics KEYWORDS: United, Continental, Merger, Antitrust Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM Carbaugh and Ghosh: United-Continental Merger United-Continental Merger On May 2, 2010, the Boards of Directors at United Airlines and Continental Airlines approved a stock-swap deal that will combine them into the world’s largest airline. The combined carrier will have 21 percent of domestic flying capacity, taking the lead from Delta Air Lines, which will lose what had been its leading 20 percent share of the domestic market. The deal still needs final approval from the U.S. Department of Justice and shareholders before being allowed to go forward. The firms hope to complete...
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...Business Model and Strategic Framework – IndiGo Airlines Business Model and Strategic Framework – IndiGo Airlines 2013 7/24/2013 2013 7/24/2013 Introduction IndiGo began its operation in 2006 and after being into business for six years, it has become India’s largest airline services overtaking Jet Airways in November 2012. Through this project report, we aim to understand the business model that is used by IndiGo and their marketing strategic framework which would help us to understand the enormous growth shown by IndiGo. Porter’s 5-Force Analysis for Airline Industry and GoIndigo in particular 1. Threat of New Entrants New entrants in the aviation industry face intense competition from the existing players and these new entrants themselves act as a huge competition to the settled players in the market. Barriers for new entrants: 1. High initial setup cost- The initial setup costs for the entrants include the airbus costs, setup costs, licensing costs, costs to airports, inventory costs, and many other costs including taxes. This increases the entry barrier to the new entrants who are willing to enter the market. 2. Existing player’s defence of market share- The existing settled players have a loyal set of customers, an established brand name and an extensive value chain. With the entry of a new entrant, the existing companies can easily defend their market share from the former. Additionally, the existing companies have an advantage of the economies...
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...A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc. The term originated within the airline industry referring to airlines with a lower operating cost structure than their competitors. While the term is often applied to any carrier with low ticket prices and limited services, regardless of their operating models, low-cost carriers should not be confused with regional airlines that operate short flights without service, or with full-service airlines offering some reduced fares. Some low-cost carriers operate aircraft configured with a single passenger class, and most operate just a single type of aircraft. In the past, low-cost carriers tended to operate older aircraft, older models of the Boeing 737. Since 2000, fleets generally consist of smaller, newer, more fuel efficient aircraft, commonly the Airbus A320 or Boeing 737 families, reducing training and servicing costs. Airlines often offer a simpler fare scheme, such as charging one-way tickets half that of round-trips. Typically fares increase as the plane fills up, which rewards early reservations. Often, the low cost carriers fly to smaller, less congested secondary airports and/or fly to airports in off-peak hours to avoid air traffic delays and taking...
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...Title of the case: United Airlines Time Context: 2003 Summary United Airlines is the world’s largest air carrier and the second largest in the U.S. United is owned and controlled by its parent company UAL Corporation. United has hubs in San Francisco, Chicago, Denver, Los Angeles, and Washington D.C. and also has key international gateways in Tokyo, London, Frankfurt, Miami, and Toronto. During 1995, United was experiencing profit and cash flow problems at that point and in order to achieve an operating cost reduction of $ 4.8 billion, specifically in salaries, Gerald Greenwald, CEO and chairman of the UAL, created an agreement with the pilots, machinists, and non-union salaried employees to accept the wage cuts provided they were given 55% ownership of the airline and each group was awarded one seat on the board of directors. United Airlines experienced a turbulent journey while traveling in its goal to be the top in airline industry. It was December of 2012, when Glen Tilton, CEO and Chairman of UAL, himself drove to Chicago’s O’Hare International Airport to personally assured UAL flyers that notwithstanding the previous day’s filing of bankruptcy, United will be flying its usual routes and guaranteed the employees that their jobs are secured, for the time being. The company’s financial problems are speculatively and frequently viewed as a result of the 9/11 hijack attack. The terrorists’ attacks of September 11, 2001, draw a major blow to the airline...
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...Business Case Study: American Airlines 1. Perform a five-forces analysis of the US airline industry focusing on entry barriers and pricing rivalry Threat of new entrants: Though it might appear to be hard to get into, entry into the airline industry depends on whether there are substantial costs to access banks and credit. If borrowing rates are cheap, then there is more of a likelihood that new competitors will enter and the more saturated it will become for all competitors. However, an airline with a strong name brand like US Airways, combined with the offer of incentives, can lure customers away from new entrants, even in prices are higher. Power of Suppliers: In the airline supply industry, there is a duopoly between Boeing and Airbus. Because of this, there is not much cutthroat competition between the two. Moreover, suppliers will not likely vertically integrate in order to start offering flight service in addition to building planes. Power of Buyers: The bargaining power of buyers in the airline industry is very low. There are high costs for the buyer if he wishes to switch airplanes. Secondly, the service between airlines is practically identical. The seats won’t be any more comfortable nor will the food be any better. Threat of Substitutes: For those who need to travel internationally for business or leisure, the threat of substitution is low. For regional travel however, one might opt out to take a train or simply drive. For those that need to conduct business...
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...Vice President Joseph R. Biden Jr. on Feb. 6th in Philadelphia describes LaGuardia Airport as "a third world airport." His speech may be considered insulting. However, according to Marc Santora, the writer of Some See Biden’s ‘Third World’ Description of La Guardia as Too Kind in the New York Times on Feb. 7, 2014, some people think that this comment is the truth. Most of the basic public facilities in LaGuardia Airport are outdated and travelers can't find any hotels nearby or any spas to relax in. That's why Vice President Mr. Biden uses the expression to illustrate the unpleasant situation in LaGuardia Airport. Gov. Andrew M. Cuomo agrees with Mr. Biden since LaGuardia Airport is ranked as the worst airport in America. Although sometimes it is annoying to wait in a long check-in line, some airports are more enjoyable for visitors to be there. For example, Hong Kong International Airport provides a golf playing field for passengers in transit; it takes less than 28 minutes to travel from downtown to the Kuala Lumpur International Airport by Express Rail. In contrast, it is inconvenient to travel to LaGuardia Airport by public transportation and it takes about 90 minutes. Cindy Josseran, a legal assistant at the International Criminal Court, adds that even though some airports in Africa may have fewer comforts, other amenities could make travelers feel delighted. In addition, Nina Sudarsan, a Columbia law student, complained that modern facilities in Third World Airports...
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...Name: Course: Professor: Date: Compare strategies between Air Canada vs. WestJet Introduction These report focuses on comparing the strategies between air Canada and WestJet. It does this by first discussing a brief background of the airlines together with their objectives. In addition, the paper goes a mile further to discuss how the two airlines carry out their market research and also the marketing tools they apply. Furthermore, it also gives an opinion on whether their strategies are in line with their objectives. Moreover, it also discusses the similarities and differences between the airlines’ strategies not forgetting the influence of the national or local government on their strategies. The conclusion gives a brief summary of the entire report. Air Canada Air Canada is a the largest full service airline in Canada and also the largest schedule provider of passenger services for fights within Canada, to U.S. and to all other major international destination to where it operates. Today the airline serves more than 32 million customers every year and its flies to more than 170 destinations in five continents. In a member of Star Airline which is the world’s number one air transport network. Nevertheless, it is the 15thlargest commercial airline in the globe and has approximately 23,200 full time employees. It has a market share of about 80% in Canada and its prime competitor is WestJet Airline (Air Canada 12) Major objectives ✓ To protect...
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