conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government
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user’s perspective. This report was not completed to assess the performance of the selected companies. Instead the research objective of this paper is to analyze the annual reports of the four top tier companies in the global airline industry and observe which airlines disclose the most useful information, within their annual reports, for me as a user. How you read an annual report depends upon your purpose. As an investor, your purpose may be to assess: profitability, survivability, growth
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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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low-cost entrants out of business. Companies take various approaches to competing against cut-price players. Some differentiate their products—a strategy that works only in certain circumstances. Others launch low-cost businesses of their own, as many airlines did in the 1990s—a so-called dual strategy that succeeds only if companies can generate synergies between the existing businesses and the new ventures, as the financial service providers HSBC and ING did. Without synergies, corporations are better
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- Pets are welcome on flight: Southwest Airlines allows customers to carry small pets (cats and dogs only) on board all domestic Southwest Airlines flights. All in-cabin pets must be carried in an appropriate pet carrier. The pet fee is $95 each way per pet carrier. Each customer is limited to carrying one pet carrier on board. The carrier may contain up to two cats or dogs of the same species. The carrier will count as the customer’s carry-on bag. Southwest does not require a health certificate
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Airline Research Final ECO 305 My chosen industry for this research paper is the airline industry. The first airline was a German airship that was founded on November 16, 1909. In the mid 19th century Americans attempted to start an airline focusing from New York to California. During this time period airlines were used to carry bags or mails and packages, however Ford Motor Company constructed a plane to carry people and became the first successful to carry 12 passengers. Over the
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Airport, JetBlue, a non-union airline, distinguished itself from other low-fare carriers such as Southwest Airlines by offering seat-back entertainment systems with live television, comfortable seats and blue corn chips. During the last six years, when traditional airlines were piling up more than $40 billion in losses, JetBlue grew to $1.7 billion in annual revenue and became increasingly popular with travelers. But now that fuel prices have pushed up expenses for all airlines, and older carriers have
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America’s biggest airlines have colluded. On July 1st the lawmakers and consumers have advocated for investigations into whether the airlines, has boost prices, limited the number of tickets they sell and etc (Harshell). Consumers has suffered by rising fares and other added charges that seem to be the result of excessive market power concentrated in too few hands and potential misuse of that power (Harshall). The Justice Department has investigated whether the America’s biggest airlines have colluded
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GLOBAL AVIATION GROUP 2013 Airline Disclosures Handbook Financial reporting and management trends in the global aviation industry kpmg.com KPMG’s Global Aviation practice KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have 152,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity
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Jackson Dr. Daniel Terfassa 9/11/2015 FIN 534 Introduction Southwest Airlines was founded in 1971 by Herb Kelleher and Rolling king. The company started its services for San Antonio, Dallas and Houston. In the mid-1980s, the company was first to offer the frequent miles program. This program allowed travelers to bank traveled air miles to be used latter credit for a reduced airfare or free ticket. It was the first airline company to offer senior discounts, fun packs and fun fans. From 1981 to
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