Team B Company: Southwest Mission of the Company * Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit * nation's largest carrier in terms of originating domestic passengers boarded * 72 cities in 37 states and is one of the most honored airlines in the world * Operates more than 3,400 flights a day and has more than 35,000 Employees system wide. History of the Industry * Started
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multiples valuations) and the discounted cash flows to value JetBlue’s share price. It reached a conclusion that JetBlue Airways IPO should be in a range of $25 to $26 per share. By: Tam Huynh (24675512) Contents 1.0 Introduction 2 2.0 The Airline Industry and JetBlue 2 3.0 JetBlue’s Going Public 2 3.1 The Advantages of going public 3 3.2 The Disadvantage 3 4.0 JetBlue’s Valuation 3 4.1 The comparable Companies Analysis 3 4.1.1 P/E Multiple 3 4.1.2 EBIT Multiple 4 4
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EWMBA 299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had
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into consideration the people factor and are only interested in “what is in it for us”. Many people usually lose their jobs to technology. This is done in the hope of saving money and gaining a larger profit margin. One company who did this is Southwest Airlines. Some of the strategies they used when reengineering were considered in hopes of lowering fares by doing a fee-based early check-in for customers who wanted to be the first to board the plane and choose a seat. The next thing they looked at
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production. A fixed cost does not increase or decrease with output, it remains the same regardless of output. Companies, such as airlines, operating with high fixed costs are faced with many challenges in order to maximize profitability. Airlines will incur the same costs to fly a given route regardless of whether or not the plane is at capacity, yet in the airline industry, there are many factors that affect output. Weather events, labor disputes, seasonal travel trends, as well as events that
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| December 11, 2009 | | JRShaw School of Business JR340 Business and it’s EnvironmentDoug KennedyBy:Andrew Hamilton, section 51 | [West Jet: An analysis of Non-Market Strategies] | | Contents History 3 Nonmarket Environment 3 Public perception 4 Private politics 5 Public politics 6 Court or regulatory scrutiny 7 Integrated Strategy 8 Leaders’ Responsibility 9 Conclusion 10 Bibliography 12 History West Jet was founded in 1996 by 5 entrepreneurs who believed
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Jet Blue Airways: Analysis of a Company The airline industry serves not only as a means of transportation to millions of people on a daily basis, but also a huge customer service industry. Customers analyze every aspect of air travel from the food services offered and convenience of completing business transactions, to the airline’s safety results and ratio of on-time departures. Many customers become brand loyal, where others will do business simply based on price. It is also vital to note
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How Airlines Compete William M. Swan July 2002 Abstract Airlines compete in city-pair markets. Each airline in the market plans a schedule of departure times and offers a series of fares. The minimum level of complication must deal with both time-of-day and at least two types of fares. Where customers find both needs met by both airlines, they choose based on secondary characteristics of the competitors, which we call quality. This simple model of the demand side leads to some compelling
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Southwest Airline: Culture, Values, and Operating Practices What is particularly impressive about Southwest Airlines is that the company has been consistently profitable every year since 1973. This is mostly due to its eager pursuit of low operating costs, low fares, and customer-pleasing service. Also, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. The company started out at the bottom and worked its way up through industry
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the change? Financial Resources- Some financial resources that Southwest can use may be to pay dividends on their stocks in order to attract investors. With more investors, they could expand their service to more cities, and even upgrade their fleet of planes with more modern technology such as Wi-Fi or televisions. They could also add newer, more efficient planes to their fleet, which reduce long term costs on maintenance. Southwest could even decrease ticket prices, while adding another fee its
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