As of Year 2004‚ the American Airline industry stood at around 783 Million USD/year in terms of operating revenue with American Airlines‚ United and Delta being the biggest players. Southwest was the 6th largest player in the market. Since 2001‚ the airline industry on the whole has been suffering he losses annually. The seat-miles flown have increased manifold over the long term (from 1989 to 2004) indicating increase in adoption of air travel among the population while the revenue per mile has
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MARKETING SPOTLIGHT- SOUTHWEST AIRLINES Southwest Airlines entered the airline industry in 1971 with little money‚ but lots of personality. Marketing itself as the LUV airline‚ the company featured a bright red heart as its first logo. In the 1970s‚ flight attendants in red-orange hot pants served Love Bites (peanuts) and Love Potions (drinks). With little money for advertising in the early days‚ Southwest relied on its outrageous antics to generate word-of-mouth advertising. Later ads showcased
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MAJOR CARRIERS Figure 1. Growth of Emirates through years Gulf Air reduced its number of weekly flights from Dubai from 80 to 39 in 1984. In response to this‚ Sheikh Mohamed bin Rashid Al Maktoum decided to create a new airline and thus began the era of Emirates airlines. Emirates was established in 1985 with two Boeing 727s from the royal fleet and an Airbus and a Boeing leased from Pakistan International Airways(PIA). It was initially the flag carrier of UAE. It carried 86‚000 passengers in
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Executive Summary Porter Airlines is a continued success in the short haul air travel business. Its low cost structure has enabled them to be proactive in the industry and gain a fairly large market share. Porter’s strategic successes include its quick turnaround time upon departure and arrival‚ its competitive ticket pricing‚ web ticket sales and its exceptional customer service. In addition‚ Porter’s low cost and low maintenance on their Q400 turboprops give them a competitive
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I. Economy The economy plays a very large part in the airline industry. Recessions are known to cause less demand for air travel for both business and leisure travelers. The financial crisis in 2008 had an extremely negative impact on the industry. The companies saw sharp declines in both passenger traffic and profit margins. While the industries are still in a sensitive spot‚ the US airlines managed to make a small profit in 2009. Thanks to the efforts of combating the dwindling demand by shrinking
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April 2008‚ Delta Airlines announced its intention to merge with and absorb Northwest Airlines‚ formerly known as Northwest Orient. Delta Airlines had already grown through the acquisition of Northeast in 1972 and Western Airlines in 1986. Northwest was also a large airline‚ having absorbed Republic Airlines‚ itself a merger of North Central Airlines‚ Southern‚ and later Hughes Air west. Republic had an important hub in Memphis‚ as did Federal Express. The result would be global airlines with hubs in
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time they develop roles‚ norms and values focusing work and is called work culture. Exhibit 2: Introduction American Airlines‚ a founding member of one world‚ is one of the largest airlines in the world. With its affiliates American Eagle® and American Connection‚ it serves some 260 destinations - including more than 150 in the USA‚ and 40 countries. American Airlines network covers points throughout North America‚ the Caribbean‚ Latin America‚ Europe and the Pacific. American has major connecting
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Q2(a) Scoot is a budget airline that provides regular medium to long haul flight at half cost as compared to existing full service carrier. There are limited budget air carriers compeititors for long haul market die to high operating cost and this makes Scoot uniqiue. Scoot airline‚ a subsidiary of Singapore Airlines‚ meets the needs of Middle Class travellers flying regularly on medium to long haul journey. The passenger customises their travel needs‚ paying only the required amenities (e.g
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carry out NDT on the lap joints or to detect in-depth corrosion. Thirdly‚ there were flaws in the maintenance program of the Aloha airline and the airline industry in general. There was a high accumulation of flight cycles between structural inspections than previously forecasted by Boeing when the B-737 Maintenance Planning Document was released. Aloha airlines Boeing 737 aircraft flight 243 had 89‚680 flight cycles and a 35‚496 of flight hours which meant that there was frequent cabin pressurization
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Situation Analysis Since day one‚ Southwest Airlines has been able to maintain a winning strategy. Starting with just three aircrafts in the state of Texas‚ Southwest implemented a low cost‚ low fare‚ no frills strategy that proved successful. As they have grown‚ more plans have been put into practice‚ such as a widely popular frequent flyer program and their now legendary customer service. These strategies have proved successful‚ as Southwest is the only airline to have maintained a profit in the recent
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