Preview

Continental airlines

Satisfactory Essays
Open Document
Open Document
483 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Continental airlines
Continental airlines case

The biggest challenge that the continental Airlines is grappling with is with regards to their operational efficiency. Their previous decision of oursourcing key functions like reservations, payroll and EDS were causing a delay in flow of information thus hindering data based decision making in the company. Most decision thus were being made not by what data said but by the “hunch” or “intuition” which often proved wrong. Lack of real time data, complex system of booking tickets, inability to acess other carriers’ data to help their passangers make the connections was all causing poor performance and poor customer satisfaction which led to their being ranked as the worst airline (in ranking) by Department of Transportation.
Efficient operations are key to a successful business especially in airlines. The problem that continental is facing would fall under operations since all the problems that continental is facing like lack of real time information, ticketing systems, traveler tracking system are all part of operations.
This is a serious problem since as mentioned earlier, efficient operrations are at the heart of any successful airline business. No matter how good the aircrafts and crew are, if the flight won’t take off on time, if the passengers won’t have a access to info no one would want to fly using that airline.
The problem was solved when Continental decided that “outsourcing” was not a solution and realized that they needed to handle the data in house for maximum efficiency. They developed new data management and software to store and manage the flow of and this enabled real time flow of information within the company.
To achieve this Continental created their own data warehousing team that could provide data and anylytics support as per the need of the business. For example, when the reservation system lost customer reservations, the data warehousing team was able to run a query to find those customers who were affected but

You May Also Find These Documents Helpful

  • Powerful Essays

    With increasing the company’s worth this project is a very important step. Allowing all of the areas of the operation to be able to flow efficiently and fluently, a better system is desperately needed. Having a RDBMS set up including a center for information that will be located within the San Jose area can allow…

    • 2831 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    As one of its goals, Huffman Trucking would like to be the industry leader in using its technology to the maximum efficiencies when providing their customer service and doing their day to day business. They are the first major freight carrier to outsource its information systems support. Their Finance and Accounting System applications are supported by Smith Systems Consulting and are integrated with the Flight Maintenance System and the Enterprise Transportation Application. These systems are tailored to capture the financial and accounting data and information related to the trucking business. Their system also allows them to maintain their customer data along with their historical sales. Marketing is able to make their plans and budgets electronically available to their management and present them as needed at sale meetings. The Sales Department has established a detailed database of its customers that can be shared with other team members. The Human Resource Department uses an HRIS system that was developed by in-house programmers that tracks employees operationally and financially. Smith Consulting has developed a system for Huffman Trucking and recommends that they convert over in order to further standardize their system.…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Rlht2 Task 3

    • 1508 Words
    • 7 Pages

    Datanal, Inc., was established by five IT entrepreneur colleagues in 2002. It enjoys a reputation for outstanding performance and presently employs some 350 IT specialists, most with proven skill in analyzing, organizing, and managing large, diversified streams of data and databases in logical, systematic form, transparently and effectively bridging present artificial separations. By enabling customers to assimilate a consistently large influx of new data while simultaneously drawing from previously unrealized complementary database…

    • 1508 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Mkt 500 Assignment 1

    • 1860 Words
    • 8 Pages

    Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of the market and with low over head costs. Such a scenario makes it problematic for a new comer to get a solid footing in the industry. Through these decades, times have been changing and Southwest airline have been changing its waste of operation to keep up with the time. Gould stated, “Core competencies are not constant. They tend to change as the organization changes. Therefore, it’s important that the competencies are flexible and not etched in stone.” (p.5, 2008) The history of the air industry is characterized with very tough competition among companies. Besides, it is even tougher for new companies to enter the industry.…

    • 1860 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Continental Airlines

    • 1514 Words
    • 7 Pages

    The short-term solution of decreasing flight capacity by 11% affects many factors in the operation of Continental Airlines. At first, it seems that a reduced number of flights and available seat miles would only benefit an airline that is failing to fill its flights and is losing out on profits because of it. On the other hand though, one must look deeper into the effects to find which costs are directly related to a reduction in flight capacity and which costs will largely be unaffected by the proposed solution. After examining the ten operating costs that Continental incurs throughout quarterly operation, I concluded that some of these costs are fixed or would not have a reaction to changes in flight capacity. In contrast, there are a few costs that are directly related to flight capacity and would see a large reduction with the cut in capacity. Table 1 below shows the ten costs that are incurred, details about each cost, and how they vary with a change in flight capacity.…

    • 1514 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    “The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007, with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008, Southwest reported record quarterly revenues, its 69th consecutive quarter of profitability, rising passenger traffic on its flights, and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King, along with Herb Kelleher, launched the most surprising success story in airline history. In 1966, King had an idea. “His business concept for the airline was simple: attract passengers by flying convenient schedules, get passengers to their destination on time, make sure they have a good experience, and charge fares competitive with travel by automobile.”5…

    • 4181 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy. The challenges are great in the airline industry, because competitors are trying to imitate the “low-cost” offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has been replaced by Gary C. Kelly, as the president when he resigned in May of 2008. Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy.…

    • 1766 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    The data is transmitted to a central computer and stored for retrieval. Data is also organized in such a way that it can be tracked by the customer.…

    • 458 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    team assignment week 4

    • 826 Words
    • 4 Pages

    The geographically distant operations make data gathering, integration and analysis a difficult task for the company giving it a drawback against other competitors in the market. Un-availability of data to the headquarters over a centralized database caused delays in financial reporting of the company. The delay caused by the disintegration of data was damaging to company’s image from the point of view of investors and stock market value. There was no in-time information regarding:…

    • 826 Words
    • 4 Pages
    Good Essays
  • Good Essays

    When Gordon Bethune left his job at Boeing in February 1994 to accept the position of chief operating officer (COO) of Continental Airlines, the company was struggling to survive. Even though it was the fifth largest commercial airline in the United States, with revenues of nearly 6 billion dollars, the company had reported a net loss every year since 1985, and was ranked the last among the top ten commercial airlines in the United States in terms of operational performance and customer satisfaction-Continental was the last among the ten largest airlines in the United States in punctuality of arrivals, had the highest number of reports of mishandled baggage per 1,000 passengers, and a much larger number of complaints per 100,000 passengers, passenger complaints about different aspects of their experience in Continental flights were 30 percent higher than those of the airline ranked in ninth place , and three times the industry average.…

    • 1590 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Southwest’s activities fully satisfied customer needs, applying the Porter’s first rule. It has short trips with low price and the frequency of flights is very high. For the customers who want easy check-in, Southwest uses automatic ticketing machines and do not have seat assignments (Govindarajan and Lang, 2002), which also applying to the first rule. However, Continental Airlines (CA) has different classes as well as using travel agents to sell tickets. In addition, the role of the manager is crucial in managing human resources and facilitating business culture. Those activities have used the third rule. Southwest hires new employees very rigorously. For this reason, the efficiency is improved considerably. This also meets the customer needs (First rule). CEO Herb Kelleher makes employees have the highest income with low employee turnover in the industry. Kelleher claimed:“ If they’re happy, satisfied, dedicated and energetic, they’ll take real good care of the customers.” That means customer needs can be respond better, which applies the first rule ( Magretta, 2002). He also builds a great corporate culture and develops high-energy local autonomy, hard work and creativity. Hence, all the activities have been targeted over a long-term period.…

    • 514 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Southwest airlines were founded in 1971 by King and Herb Kellerher. They started with a low cost strategy in a risky market where profitability depends a lot on fuel prices and external factors, such as the willingness of consumers to pay ticket prices. They started growing a lot with various strategies that permitted them beat a lot of their competitors, but in order to stay in the market they need to improve those strategies and come up with new ones to stay differentiated from the other airlines. Now they’re ranked the top 7 airline that controls the share of the market, but new strategies will be needed for them to continue to be a profitable company.…

    • 2342 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Southwest Airlines Case

    • 2207 Words
    • 9 Pages

    Southwest Airlines has employed unique operational strategies, incorporating industry revolutionizing methodologies, while developing and sustaining a strong corporate culture that has allowed Southwest Airlines to be profitable for a phenomenal 30 straight years and capture the Airline Industry Service Triple Crown five years in a row from 1992 to 1996. Southwest Airlines own success threatens whether it can maintain the strong corporate culture responsible for its prosperity while growing and adding additional routes. More pressing than the long-term strategy however were the terrorist attacks of September 11, 2001 that created uncertainty in the general environment of US economic trends and the task environment coping with new government security regulations that challenges whether the business model Southwest Airlines was founded on needs to adapt to continue to provide profits to stockholders.…

    • 2207 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Problems at China Airlines

    • 1962 Words
    • 7 Pages

    Purkayastha, D, Faheem, H & Samanta, M 2010, Problems at China Airlines, IBS Center for Management Research, India.…

    • 1962 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Exm 2557 Submit

    • 11665 Words
    • 36 Pages

    6. Discuss possible strategies, and their advantages and disadvantages in today’s airline industry which must be followed if success is to be achieved.…

    • 11665 Words
    • 36 Pages
    Powerful Essays