founded by current CEO Tony Fernandes Jetstar, an Australian incorporated company, is a subsidiary of QANTAS currently managed by CEO Bruce Buchanan Industry Both companies operate mainly in Asia Pacific region’s budget passenger airline industry. However, both are not fully integrated as they do not build their own aircraft. Both companies only offer economy class for its flights, which travels within Asia Pacific region and to selected international destinations. Core activities
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for airline industry has been conducted as below to model AirAsia as a chain of value creating activities. The goal of these activities (Inbound logistics, Operations, Outbound logistics, Marketing and Sales, and Service) is to create value that exceeds the cost of providing the product or services, thus generating a profit margin. Figure: Sample Value Chain of Airline Industry Value Chain of AIRASIA Inbound Logistics: As inbound logistics involves different categories in airline industry
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move to block US Airways' planned merger with American Airlines, Mother Jones blogger Kevin Drum highlighted a novel counterargument. Mr Drum says that it is still "an open question whether deregulation was such a boon for the flying public in the first place," and points to a 2012 article by Phillip Longman and Lina Khan. In that piece, published in the Washington Monthly (where I was once an intern), Mr Longman and Ms Khan argue that airline deregulation has slowly killed mid-sized airports and
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The International Air Transport Association (IATA) is an industry trade group for airlines around the globe. IATA represents 240 airlines or 84% of total air traffic. They assist different aviation activities and help form industry policy on aviation issues. IATA was founded in Havana, Cuba in April 1945. They consisted of 57 members in 31 countries. They promote “safe, reliable, secure and economical air services” for their consumers worldwide. IATA’s schedule is 100 times larger than in 1945
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Porter Airlines Case Brief Embry-Riddle Aeronautical University Background Porter Airlines is another unlikely success story in the fierce and cutthroat regional airline industry. Founded in 2002 by Robert Deluce, a regional airline veteran, Porter Airlines wanted to take advantage of a small but crucial market in the Toronto area and grow from that beginning. The Toronto area is considered Canada’s financial hub and thus created a large number of business travelers. Deluce’s strategic
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I. Introduction. Nowadays, airlines industry is one of profitable businesses in the world. Both government and private enterprise are dominant in the industry. In Vietnam, aviation market is forecasted to be the world's 7th fastest-growing in 2013-2017 period. The Vietnam airlines industry stands a high chance of developing strongly, but there must be an investment in technology, infrastructure in order to reduce the cost as well. And Vietnam Airlines is a largest aviation brand name in
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Briefly describe the trends in the global airline industry. Firstly, cost pressures on airlines continue to be high. The industry is facing many challenges on the cost side. For instance, jet fuel costs, which are directly correlated with oil prices, continue to rise. Airlines are generally unable to pass these costs onto the consumer, especially in the face of growing competition and price-sensitive markets. Nevertheless, these high fuel prices have motivated manufacturers to create more fuel-efficient
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Submission Southwest Airlines Evaluation Introduction Southwest Airlines is a unique short-haul airline operating in United States with its headquarters in Dallas, Texas. It was started nearly three decades ago, and it has been considered as model as a model for the industry. It was started in 1967, but started flying in 1971 following successful court battle from competitors who argued against its entry into the market (Doganis 124). Southwest airlines have come along way as low-fair airline managing to
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organisation. A case study of Singapore Airline Competitive advantage is a circumstance that put a firm in a strong business position compare to its rivals in the industry (Breaugh, 2008). While the hospitality industry is faced with by micro and macro environmental factors, such as overcapacity, business cycle, high risk profile, difficulty of offering unique products and intensive competition in the industry, few companies such as the Singapore Airline have managed to maintain their market position
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it did not launch as a typical no-comfort airline. In reality, Jet Blue was seen as a “value player” (Barney & Hesterly. Strategic Management and Competitive Advantage. Pg. 162). As a new entrant in a mature industry, Jet Blue used specific resources to position itself as a cost leader. These resources are the foundation of our Resource Based View (“RBV”) of the company. We will attempt to compare Jet Blue’s standing with that of Southwest Airlines (ticker: LUV), considered a market leader in
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