Airline Industry Overview History The airline business has been in existence for over 75 years. There have been many upward and downward swings in the overall airline business economy. History has recorded that while 140 airlines have declared Chapter 11; only two have emerged. Today‚ the U.S. airline industry is facing an unprecedented financial crisis and the outlook is bleak. Only one major carrier that has shown a profit over the past four years and‚ in the same timeframe‚ the other major
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Strategic Management “American Airlines ” Case Study Strategic Management Prepared By Fathi Salem Mohammed Abdulla 2009 37 Introduction American Airlines‚ Inc. (AA) is a major airline of the United States. It is the world ’s largest airline in passenger miles transported and passenger fleet size; second largest‚ behind FedEx Express‚ in aircraft operated; and second behind Air France-KLM in operating revenues. A subsidiary of the AMR Corporation‚ the airline is headquartered in Fort Worth
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A British airway was the worst rated airlines in 1981 and was called Very Troubled airlines with severe losses‚ bad quality‚ overstaffed and very near to bankruptcy. But with the Survival Plan Initiated by John King‚ the chairman in 1981 changed the image and turned failure into success. The things which he did was simple following the SWOT analysis by analyzing the internal and external factors leading to failure and dissatisfaction. By 1990 British Airways was converted into a profitable entity
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Balanced Scorecard. Airline industry is very competitive as Jetstar isn’t the only Domestic Flight dominating the market. Porter’s Five- Forces Model is used to analyse the intensity and profitability of this industry. In order to illustrate Jetstar’s competitive advantage over its competitors‚ Porter’s Five Forces evaluation is assessed below. Porter’s Five Forces model is essential to evaluate Jetstar Airways’ competitive advantage as it was established in 2003 as a low-cost airline by its parent company-
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ONLINE TICKETING IN THE AIRLINE INDUSTRY: THE GLOBAL IMPACT Chiang-Nan Chao‚ St. John’s University‚ Jamaica‚ NY‚ USA Robert J. Mockler‚ St. John’s University‚ Jamaica‚ NY‚ USA Dorothy G. Dologite‚ Baruch College‚ New York‚ NY‚ USA ABSTRACT As consumers move away from the traditional approach of buying airline tickets in the past years‚ airlines are benefiting from cost reduction due to the rapid increase in paperless e-ticket sales and restrictive use of traditional travel agencies. However‚ when
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How is Singapore promoting herself as a luxury destination and what can be better done to meet future trends? 1. Defining Luxury Tourism 2.1 Luxury Travel Sectors According to International Luxury Travel Market (ILTM)‚ the luxury travel sector is characterized by uniqueness and brand imagery. Uniqueness is the fusion of quality‚ creativity and a reputable culture of knowledge‚ skill and expertise while brand imagery is the emotional communication that one feels with the image associated
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American Airlines. The reorganization took effect on Oct. 1‚ 1982. The formation of AMR had no effect on day-to-day operations of American‚ but it did – and still does – provide the company with access to sources of financing that otherwise might not be available. The holding company structure also allows the company to take advantage of appropriate new opportunities. The name “AMR” was taken from the airline’s three-letter New York Stock Exchange
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CASE 3 – SINGAPORE AIRLINES GROUP IDENTIFY ISSUES 1. Global financial crisis (mid 2007 onwards) - further burdened by the collapse of some of the largest financial institutions in the world. b. As demand for air travel is significantly impacted by income levels‚ customers tend to be more price sensitive during crisis time and will usually opt for budget travel or in some cases will not travel at all. c. Led to reduced demand for travel d. Airline reduced the passenger and cargo capacity
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Case #20 – Southwest Airlines Company History 1966 Rollin King approached Herb Kelleher’s law office with plan to start low-cost/lowfare airline Ran into legal problems‚ rival airlines in Texas did everything they could to block new airline Herb Kelleher was determined to start up airline 1971 – Lamar Muse Southwest CEO‚ background in industry to get it up and starting Raised $7 million in capital and private investors to purchase planes and equipment Flights started between Dallas
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Southwest Airline Analysis The goal of this paper is to explain the prominent success of Southwest Airline in the United States through a single case study analysis making use of the McKinsey’s 7-S framework. Developed in the early 1980s at the McKinsey & Company consulting firm by Tom Peters and Robert Waterman‚ this framework looks at 7 internal factors (Structure‚ Strategy‚ Systems‚ Style‚ Staff‚ Skills‚ Super-ordinate goals) which‚ according to its authors‚ need to be aligned for an organization
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