Importance to economy The revenue of international airlines industry has increased from 476 billion USD in 2009 to 567 billion USD in 2011‚ a 9.3% year-on-year increase. This industry employs 56.5 million workers and accounts for US $2.2 trillion of the global GDP. Indian Aviation industry contributes to 0.5% of the India’s GDP and generates 1.7 million jobs. Technological Trends Major cost items for airlines are fuel‚ labour and maintenance. Airlines are able to reduce the cost/increase profit by
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Case 5.2 Southwest Airlines Corporation Problem formulation This case discusses the American based airline company Southwest Airline’s strategy and seeks to evaluate the basis on which Southwest builds its competitive advantage. Secondly‚ an analysis of Southwest´s control systems and what function they fill towards enabling the execution of their strategy. Arguments Southwest Airlines Corporation business strategy revolves around a cost-cum strategy. What this means is that their primary goal
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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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The Airline Industry Annise Hawkins Strayer University ECO 550 Dr. Youngblood January 28‚ 2012 According to First Research (2010)‚ the main products or service in the industry is air transportation. This includes the scheduled or unscheduled transportation of passengers‚ mail or cargo. The bulk of the revenues in the industry (estimated by first research (2010) to be 70% of total revenues) come from the scheduled transportation of passengers. Cargo and express mail contribute
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Eunice Kelly MBA 522 Marketing Southwest Airlines case analysis 1. In what ways might airline customers be segmented? Airline customers might be segmented when groups with varying needs and wants are recognized. They can be segmented on a number of different types of things; such as age‚ gender‚ location‚ buying behavior‚ and demographics. a. Which segments or niches would you consider Southwest’s prime targets? Southwest’s prime targets would be that of business and leisure travelers.
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direct linked to supporting area such as marketing‚ procurement‚ and information system. The case of Comair airline‚ even after acquisition by Delta airline must recognize the above and initiate plans for aligning themselves with success factors. The following are incorporate an analysis of the company as well as recommendation for improvements. 2.0 Comair’s History The earlier years of Comair’s airline were met with a significant amount of success. This was evident by their ability to expand their
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Case study - Low cost airlines History of low-cost airlines The idea of LCC originated in the US. Founded in Dallas Texas on June 18‚ 1971 by Herb Kelleher‚ Southwest Airlines offered tickets that worked out to be cheaper than a car or coach ride. It is the fourth largest US airline in terms of domestic customers carried annually. It has been profitable every year since 1973. Low cost airlines in India But a booming economy‚ a congested and crumbling train network and the emergence of
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Life in the Continental Army June 14‚ 1775 the Continental Army was formed after the outbreak of the American Revolutionary War. Formed by colonies that became the United States of America‚ and established by a resolution of the Continental Congress‚ it was created to coordinate the military efforts of the Thirteen Colonies in their revolt against the rule of Great Britain. It was commanded by General George Washington‚ Commander in Chief‚ throughout the war (Wikipedia.com). The idea of creating
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PHILIPPINE AIRLINES: What’s next? Philippines airlines started its history on March 15‚ 1941 on a small twin-engine Beech Model 18 flying 212 of pure skies from Manila to Baguio with a full load of five passengers. Upon the outbreak of the pacific war‚ PAL’s two aircraft were pressed into service with the US army Air Corps. Post-war operations began on February 14‚ 1946 with five ex-military Douglas DC-35. In July‚ the airline chartered DC-4s to carry American service men home to Oakland‚ making
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year‚ the time series exhibits regular fluctuations during every July in each year. For instance‚ this equation (y = 2.3347x + 100.47) explains that there is a coefficient of trend that’s moving upwards Moreover‚ every July the demand of Clear Skies Airlines (CSA) is very good Therefore‚ the number of passengers that travel overseas from Pleasantville using CSA’s services‚ shows a strong increasing trend‚ with strong seasonality. On the basis of the cyclical travel patterns‚ we can clearly see that the
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