Airline Bankruptcy
Claremont Colleges
Scholarship @ Claremont
CMC Senior Theses CMC Student Scholarship
2010
Airline Bankruptcy: The Determining Factors Leading to an Airline's Decline
Jason Tolkin
Claremont McKenna College
Recommended Citation
Tolkin, Jason, "Airline Bankruptcy: The Determining Factors Leading to an Airline's Decline" (2010). CMC Senior Theses. Paper 88. http://scholarship.claremont.edu/cmc_theses/88
This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact scholarship@cuc.claremont.edu.
CLAREMONT McKENNA COLLEGE AIRLINE BANKRUPTCY: THE DETERMINING FACTORS LEADING TO AN AIRLINE’S DECLINE
SUBMITTED TO PROFESSOR MARCOS MASSOUD AND DEAN GREGORY HESS BY JASON TOLKIN
FOR SENIOR THESIS FALL/2010 NOVEMBER 29TH, 2010
Table of Contents
Abstract …………………..…………………………………………………………… 1
Introduction ………………………………………………………………………….. 3
Chapter 1: The Economics of the Airline Industry ………………………. 6
Chapter 2: Managing Cost Structure ……………………………………………. 20
Chapter 3: Performance Metrics ………………………………………………….. 33
Chapter 4: Case Study …………………………………………………………………... 45
Chapter 5: Conclusion …………………………………………………………………... 60
2
Chapter 6: Recommendations ……………………………………………………….. 62
Abstract: The purpose of this study was to determine what the critical factors are to an airline’s financial turmoil, leading ultimately to a bankruptcy filing. Over the past decade, the airline industries’ performance has been dismal, leading to 20 bankruptcy filings. As competition increases, it is crucial for airlines to know which core business areas are essential to success. This paper identifies 8 specific industry metrics that are used to compare airlines, revealing where certain airlines falter and others shine. Some of these metrics are later applied to a case study examining Trans World Airlines (TWA) and
Scholarship @ Claremont
CMC Senior Theses CMC Student Scholarship
2010
Airline Bankruptcy: The Determining Factors Leading to an Airline's Decline
Jason Tolkin
Claremont McKenna College
Recommended Citation
Tolkin, Jason, "Airline Bankruptcy: The Determining Factors Leading to an Airline's Decline" (2010). CMC Senior Theses. Paper 88. http://scholarship.claremont.edu/cmc_theses/88
This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact scholarship@cuc.claremont.edu.
CLAREMONT McKENNA COLLEGE AIRLINE BANKRUPTCY: THE DETERMINING FACTORS LEADING TO AN AIRLINE’S DECLINE
SUBMITTED TO PROFESSOR MARCOS MASSOUD AND DEAN GREGORY HESS BY JASON TOLKIN
FOR SENIOR THESIS FALL/2010 NOVEMBER 29TH, 2010
Table of Contents
Abstract …………………..…………………………………………………………… 1
Introduction ………………………………………………………………………….. 3
Chapter 1: The Economics of the Airline Industry ………………………. 6
Chapter 2: Managing Cost Structure ……………………………………………. 20
Chapter 3: Performance Metrics ………………………………………………….. 33
Chapter 4: Case Study …………………………………………………………………... 45
Chapter 5: Conclusion …………………………………………………………………... 60
2
Chapter 6: Recommendations ……………………………………………………….. 62
Abstract: The purpose of this study was to determine what the critical factors are to an airline’s financial turmoil, leading ultimately to a bankruptcy filing. Over the past decade, the airline industries’ performance has been dismal, leading to 20 bankruptcy filings. As competition increases, it is crucial for airlines to know which core business areas are essential to success. This paper identifies 8 specific industry metrics that are used to compare airlines, revealing where certain airlines falter and others shine. Some of these metrics are later applied to a case study examining Trans World Airlines (TWA) and