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 of the September 11, 2001 attacks on World Trade Center, and at a time when the entire airline industry was experiencing
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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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service shut down of JetBlue Airlines. We will also look at a few different scenarios as to what could have been done differently to avoid such a catastrophe. We will look at things such as management's position in the technology department’s lack of planning. Jet Blue My thoughts as to what contributed to the shutdown of JetBlue were lack of management planning and technology shortfalls. JetBlue had a lot of things going for them as far as being a fairly new airline with a massive volume of passengers
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research that has aq are American Airlines and US Airways. On January 7, 2014 both airline announced the $17 billion merger that created the world’s largest airline, which is a position that American Airlines once held years ago until a wave of mergers and consolidations in the airline industry over the past few years. It plans to operate nearly 6,700 daily flights to more than 330 destinations in more than 50 countries. The strategy that led US Airways and American Airlines to merge was one of mutual
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become the first European budget airline. Ryanair made key strategic decisions regarding the long term direction of the company and the scope of their activities while considering the external environment in order to achieve strategic fit. The first strategic move in order to become a successful low-cost airline was to recruit Michael O’Leary in 1992. O’Leary introduced many changes to Ryanair by implementing a strategy similar to that one of Southwest airlines from the USA. First of all, O’Leary
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Airlines such as WestJet and JetBlue promote low-cost and high-efficiency carriers by giving extremely competitive fares and outstanding customer service. Reservation system for these airlines are so important that when these companies need to make sweeping IT upgrades, their relationships with customers and their brands can be tarnished if things go awry. This can be seen when in 2009, both airlines upgraded their airline reservation systems, SabreSonic CSS was launch, customers struggled to place
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January 27, 2014 Provide a brief (one [1] paragraph) description of the organization you chose to research. Southwest Airlines was founded in 1971 by Herb Kelleher and Rollin King to provide frequent, low cost airline service in busy markets less than 500 miles apart. “Southwest Airlines is now America’s largest low-fare carrier, serving more Customers domestically than any other airline with a unique combination of low fares, no annoying fees, friendly Customer Service delivered by outstanding
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are different names for the low cost carriers which include budget airlines, discount airlines and even no-frill airlines. The concept behind LCC is to present the customer with a low cost air travel but with fewer benefits (Dresner and Lin, 1996). Since the ticket price is low, the airlines puts a price tag for extras in the flight in order to generate more revenue for the revenue lost through decreased prices on tickets. The airline companies are able to generate a low cost operating structure which
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COMPANY Case JetBlue: Delighting Customers Through Happy Jetting In 2007, JetBlue was a thriving young airline with a strong reputation for outstanding service. In fact, the low-fare airline referred to itself as a customer service company that just happened to fly planes. But on Valentine’s Day 2007, JetBlue was hit by the perfect storm—literally—of events that led to an operational meltdown. One of the most severe storms of the decade covered JetBlue’s main hub at New York’s John F. Kennedy
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The Southwest Way: Leadership, Power, and Motivation When Herb Kelleher and Rollin King founded Southwest Airlines in 1971, their mission stated the “dedication of the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit” (Smith, 2012). With that mission in mind, Herb Keller and Rollin King managed to make Southwest the only profitable airline in the United States (Smith, 2012). Southwest’s mission is not the only reason why the
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