STRATEGIC CONSIDERATION BMA 5013: Corporate Strategy Jacob Dreizin Rudiger Hesse Robert Martinez Lee Vu Hoang Nhat Victor Ka Sing Tsui Executive Summary On September 27th, 2010, Southwest Airlines announced its intention to buy AirTran Airways for $1.4 billion, with the merger being effected within two years. Although by number of planes, AirTran is just slightly more than one-quarter the size of Southwest, the number of routes that each airline presently flies is the same. We anticipate
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FEU MBA 209 Case Study Jetblue Airways: A Cadre of New Managers Takes Control Case Background JetBlue is a low-cost domestic airline in the United States following a rather interesting combination of ‘low-cost and differentiation’ as its strategy. From its inception in 1998, the airline grew to become the 11th largest player in the airline industry in a short span of 6 years. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath
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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
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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
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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
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Case #3 Jet Blue Airways A Cadre of New Managers Takes Control Strategic Management BUS 599 051*VA016*1122*001 Dr. Russell Handlon January 15, 2012 Case 3: Jet Blue Airways Question 1 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The trends in the United States airline industry is high prices on gas, oil, maintenance, risks of terrorism, and less travelers flying rather its for personal or business. When these things
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JET BLUE AIRWAYS CORPORATION---2009 STEP 1: Identify the firm’s existing mission, vision, objectives and strategies. Mission Statement: “Bring humanity Back to Air travel”. We exist to provide superior services at low cost. Vision Statement: SAFETY: We commit to "Safety First"; Comply with all Regulatory Agencies; Set and Maintain Consistently High Standard. Ensure the Security of Crewmembers and Customers; Never Compromise Safety. CARING: Maintain Respectful Relationships with Crewmembers
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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
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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
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MARKETING OF SERVICES MKT 815 GROUP PROJECT COMPARITIVE MARKET ANALYSIS BETWEEN AIR ARABIA & AIR INDIA EXPRESS SUBMITTED TO DR. ABDUL WAHEED DATE OF SUBMISSION: SUBMITTED BY: 13.04.11 Reema Badlani Yogesh Badlani AIR ARABIA Air Arabia operates one aircraft type, the
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