Southwest Airlines Southwest Airlines has long been one of the stand-out performers in the U.S. airline industry. It is famous for its low fares which are often some 30% lower than those of its major rivals. These are balanced by an even lower course structure‚ enabling it to record superior profitability even in bad years such as 2002‚ when the industry faced slumping demand in the wake of the September 11 terrorist attacks. Indeed‚ from 2001 to 2005‚ quite possibly the worst 4 years in the
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Proposal to avoid managerial derailment and failure Southwest Airlines strict adherence to its mission to provide the highest quality of customer service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company spirit is a key factor to the company’s success (About Southwest Airlines Co‚ 2013). The airlines ability to commit to employees to provide them with a stable work environment that ensures equal opportunity for learning and personal growth. Southwest prides itself on
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Executive Summary Southwest Airlines has been a strong growth company over the last 35 years. Using its low-cost‚ passenger friendly‚ point-to-point operational strategy‚ Southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. While Southwest has gained market share in recent years‚ legacy carriers have struggled due to depressed market conditions. The entire airline industry has endured expensive labor contracts‚ soaring energy costs and
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leadership While the other airlines in the industry purchased rivals‚ flew different models of planes and tried to offer costly services‚ Indigo stuck to single model planes with a reputation of being a no frills airline. Indigo has stuck to operating the world’s largest selling single-aisle aircraft‚ the Airbus A320. This has helped the airlines to not just survive the economic slump in the industry but infact to post profits year-on-year end. Capacity utilization of IndiGo airlines fleet The utilization
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Singapore Airlines’ strategy Singapore Airlines is positioned as a premium carrier with high levels of innovation and excellent levels of service‚ and has made a strategic choice of giving priority to profitability over size. The internal organizational practices outlined in this paper‚ such as continuous people development and rigorous service design are key aspects of operationalizing and sustaining this positioning and strategic choice. At the corporate level‚ SIA follows a strategy of
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The Changeable Nature of Air Transport Markets Air transport markets are very changeable by nature. The aviation industry in general is usually the first industry to be affected by periods of economic instability and recession and the last to rebound back. Two markets that this report will focus on are that of Fractional Ownership Markets and Cargo Markets. Fractional Ownership Market This involves more affluent customers purchasing a share of an aircraft. It gives these customers/owners
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case case Continental Airlines: One Company’s Flight to Success In the last decade‚ Continental Airlines has had a spotty track record. The airline twice filed for bankruptcy‚ realized diminished performance culminating in a $613 million loss in 1994‚ and was ranked dead last in industry indicators such as on-time performance among the major carriers. During these years‚ employees at Continental had undergone several series of layoffs and withstood both wage cuts and delayed wage increases in
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Professor: Elena Vidal (EV) Moustafa Elkholy November 4th‚ 2014 BPL 5100 Case Write-ups (Southwest Airlines) 1. What do you see as the issues the company is facing? The distance between the employees (The managers and the top management) has been increased. Before the leadership change‚ the top management was very close to the employees. That change causes a radical change in the company’s culture. Southwest experienced an increase in the fuel and wages cost. Southwest failed
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Southwest Airlines in 2010: Culture‚ Values‚ and Operating Practices Summary Southwest Airlines was founded by Herb Kelleher in 1967 to provide low-cost service between Dallas‚ Houston‚ and San Antonio. Although the U.S. airline industry had lost money in 15 of the 30 years between 1980 and 2009‚ Southwest has reported profit every year since 1973. Southwest Airlines is considered to be the most successful budget airline in the U.S. Since 2000‚ the number of passengers flying Southwest has
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full service airlines facing today This essay examines the challenges faced by Hong Kong’s full service airlines nowadays. Air transportation serves not only to encourage trade and growth in the tourism industry in Hong Kong‚ but also to improve people ’s mobility and to form a modern society. In this essay‚ full service airline is defined as traditional airline that provides services such as allocated seat‚ transfer of baggage between flights‚ blankets and meals. Full service airlines suffer several
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