The U.S. airline industry has been in a chaotic state for a number of years. In 1993‚ a U.S. government report indicated that the industry had “Lost huge amounts of money in the past three years‚ and it has never made a sustained‚ substantial return on investment…” According to the Air Transport Association‚ the airline industry trade association‚ the loss from 1990 through 1994 was about $13 billion‚ while from 1995 through 2000‚ the airlines earned about $23 billion and then lost about $35 billion
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Eastern Airlines Facing Bankruptcy In 1986‚ Eastern Airlines was in desperate trouble. The fourth quarter of 1985 had shown a $67.4 million loss‚ and financially experts had told Frank Borman‚ president and chief executive officer‚ that the airline had three choices: 1) a 20 percent pay cut for all union and noncontract employees. 2) Filing for Chapter 11 (bankruptcy) or 3) Selling the airline. On February 23‚ 1986‚ Eastern’s board of directors met to decide the
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the airline industry can be credited with shaping travel in a way that was once perceived as impossible. Because air travel is a commodity‚ the airline industry has found itself an extremely competitive market‚ where creating more value for their customers is essential in order to succeed. United Airlines leaves no room for confusion that they recognize this necessity‚ as their mission statement is‚ “To be recognized worldwide as the airline of choice.” Incorporated in 1931‚ United Airlines has
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Case Study > Data Warehousing Continental Airlines I. Executive Summary Table of Contents I II III IV V Executive Summary The Decision to Invest Implementation New Business Strategies ROI 2 4 6 9 19 20 Technical Appendix A Continental’s comeback from “Worst to First” is an airline industry legend. Now the company is engaged in a new initiative to move from “First to Favorite.” To support this ambitious initiative‚ Continental tapped into its Enterprise Data Warehouse and expanded it
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Continental Airlines Memo To: Lawrence Kellner From: Date: Re: The purpose of this memorandum is to address the profitability issues at Continental Airlines and to estimate the costs for 2009 to forecast the future outlook of the company. To address these issues‚ I used regression analysis to observe what effect the 11% reduction in flying capacity would have on the firm’s future operating costs. I also used the results from the regression analysis to verify the costs that‚ if reduced
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Introduction and company overview Alaska Airlines was founded in Anchorage in 1932 and expanded to 22 aircraft operating within the state by 1934. In the late 70s‚ the airline began expansion to the lower Western states and by 1987 had acquired Horizon Air and Jet America bolstering its North South route structure and complementing the seasonal nature of travel to Alaska Today Alaska Air Group‚ Inc. (Alaska Air) is the holding company for Alaska Airlines‚ Inc. and Horizon Air Industries Inc. The
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their grievance by using the toll-free and personal voicemail. * Bethune tied in performance appraisals with incentives. * Employees were provided with the proper resources to achieve goals. Q3: To ensure that a continental airline improves on performance over next decade‚ continuing employee recognition would be one of the priorities on the list. Employee satisfaction plays a large role in ensuring they are following all policies procedures and in addition providing great
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An Analysis of People Express Airlines: Rise and Decline Group Project Strategy is defined as the process of positioning the organization in the competitive environment and implementing actions to compete successfully. The premise behind the strategy of People Express was to focus on the people‚ both the customers as well as the employees. Employees were referred to as “People”‚ and the passengers were referred to as “Customers”. Examples of strategies implemented by People Express early in
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Case Study: Continental Airlines Q.1. What is the business benefit of the Call Miner system? Provide some additional example beyond those discussed in the case? To provide better service and market analysis successfully in an increasingly complex and information-rich society‚ company must need to use technology. There are several business benefit of this technology. Technology such as CallMiner has different kind of benefit in different areas such as sales and marketing‚ customer service etc
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Anti-trust issues on American airline industry The first airline company that provides air transport services for traveling passengers and freight was established in early 1920s‚ and also at that time‚ Queensland and Northern Territory Aerial Services (QANTAS) was formed‚ and continues to operate. Over 90 years‚ the world has changed a lot. Now there are over two thousand airlines operating more than 23000 aircrafts providing services to over 4000 airports all over the world. Passengers can easily
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