aircraft fuel price increases‚ wages‚ work rules and work patterns‚ chapter 11 bankruptcy airlines‚ excess capacity‚ a very capital intensive business and too many years as regulated airlines. In fact‚ during the Gulf war and recession in 1990-92‚ it took them four years to return to profit‚ even though traffic recovered within a year. The industry experienced a profit slump. From 1994 to 1997‚ airlines have had to recognize the need for radical change to ensure their survival and prosperity‚
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Situation Following the Deregulation in 1978‚ a competitive price war ensued among the airline industry as a direct result of the new freedom for airlines to set their own fares as well as route entry and exits. This gave rise to the operating structure of the airlines as it exists today‚ consisting of the point-to-point system and the hub and spoke system. With this came the change of focus for major airlines to non-stop‚ cross-country routes in densely populated cities‚ which‚ in a regulated environment
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AirTran poses many obstacles for SWA’s sales strategy. The acquisition will threaten the pricing structure of SWA. It will give them the opportunity to raise its fair‚ as there is less competition in the Northeast (where AirTran serves) and major airlines have paired off leaving only five major players (Huffington post‚ 2010). Further promoting a fare increase is SWA’s refusal to charge for baggage. Although‚ this is a great sales tactic‚ it provides no source of revenue‚ resulting in a fare increase
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pilots‚ technicians and other service providers. 3) Morning flights are usually unavailable. 4) Only one class of seating is offered. 5) Operates mainly its own booking service‚ booking flights is not available except directly through Southwest Airlines. 6) Can only carry a limited amount of cargo and freight. 2.3 Opportunities 1) Further expansion in the international market. Pursuing code-sharing deals with
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Emirates Airlines is one of the leading airlines in the industry. It has maintained many sources of competitive advantage in terms of cost and uniqueness which had led to a cost advantage and differentiation advantage. Although cost advantage and differentiation advantage are mutually exclusive‚ Emirates Airlines was able to sustain both. As for the competitive scope‚ the company can have either a broad target or a narrow target. Most probably Emirates Airlines is favouring the broad target because
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Introduction Singapore Airlines (SIA) has developed into one of the most respected travel brands around the world. Its mission statement: "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximizing returns for the benefit of its shareholders and employees". Singapore Airlines has grown from a regional airline into one of the world ’s leading carriers. They have a young‚ efficient fleet‚ an educated staff attuned to quality‚
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evaluate the adaptation of the marketing mix (MM) of two airlines with respect to a certain marketing tactic. Therefore‚ Etihad Airways‚ the national carrier of the United Arab Emirates (UAE) and the South African low-cost carrier Mango have been chosen for the comparison. Hence‚ brand positioning and awareness will be appraised as a marketing tactic for both airlines. Secondly‚ this report will compare and evaluate how these two airlines adapt product and promotion as part of the MM in order
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9-803-133 REV: MARCH 11‚ 2003 JAMES L. HESKETT Southwest Airlines 2002: An Industry Under Siege Amid Crippled Rivals‚ Southwest Again Tries To Spread Its Wings; Low-Fare Airline Maintains Service‚ Mulls Expansion In Risky Bid for Traffic — Front Page Headline‚ The Wall Street Journal‚ October 11‚ 2001 The Age of “Wal-Mart” Airlines Crunches the Biggest Carriers; Low-Cost Rivals Win Converts As Business Travelers Seek Alternatives to Lofty Fares — Front Page Headline‚ The Wall Street Journal
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Selection of and Justification for Alternatives Competition There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website‚ but they now also have the ability to compare everything regarding the flights from plane types‚ durations‚ layovers‚ connecting flights‚ additional fees and fares on
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would survive this restructuring. NOTE 1. Source: Jupiter Communications‚ 2000. WESTjET AIRLINES (A): THE CULTURE THAT BREEDS A PASSION To SuccEED Prepared by Ken Mark under the supervision of Professor Gerard Seijts Copyright© 2001‚ lvey Management Services INTRODUCTION It was April 17‚ 2001‚ and WestJet ’s market capitalization had just surpassed that of Air Canada ’s‚ the country ’s leading airline. "We ’re in the hospitality business and our culture is everything to us‚" stated Don Bell
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