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 with respect to strategic‚ accounting and financial analysis. We will develop a detailed forecasting model on which we will base our valuation of the companies. Other issues which arise will also be discussed in detail. Ultimately we will decide on whether to put a buy or sell recommendation on the shares of Southwest Airlines and Continental Airlines. From the above we conclude that we would put a BUY recommendation on BOTH Southwest Airlines and Continental Airlines. These
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A CASE ANALYSIS ON NORTH-SOUTH AIRLINE I. CASE BACKGROUND Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier in which it inherited both an aging fleet of Boeing 727-300 aircraft and Stephen Ruth. As the new president of the airline‚ Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts. He noticed that there have been significant differences
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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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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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Chapter 2 Characteristics of the Airline Industry The real difficulty in changing any enterprise lies not in developing new ideas‚ but in escaping from the old ones. John Maynard Keynes 2.1 Introduction In recent years‚ the European airline industry has exhibited impressively dynamics. The sector has gone through a drastic change on both the supply and the demand side. Unlikely in other industries‚ the driving forces governing the recent changes do not depend mainly on technological factors
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12 Summary 12 References 13 Abstract In this case study we will review the new strategic business plan of American Airlines‚ and how they are responding to changes in the marketplace to compete in the modern era. We will also analyze the advantages of rebranding efforts‚ the effectiveness of existing practices of the airline and how the airline may operate post merger with US Airways. By some measurements‚ the merger between American Airlines and US Airways will create the largest company in
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5 Human Resource Planning 5 Workforce Planning 9 Project Management 11 Project Methodology 13 Change Management 16 Conclusion 18 Continental Computer Corporation (CCC) Introduction The restructure within CCC opened the organisation to many problems leading to different structures as set by the different VP of the different division leading to no proper coordination between the three
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Continental Drift and Plate Tectonics Theory (Part 1a) Introduction: The Beginning of the “Continental Drift Theory” In the middle of the eighteenth century‚ James Hutton proposed a theory‚ uniformitarianism; “the present is the key to the past”. It held that processes such as geologic forces- gradual and catastrophic-occurring in the present were the same that operated in the past. (Matt Rosenberg‚ 2004) This theory coincides with the theory of Continental Drift that was first proposed by Abraham
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In this case Peter Browning has got the position of vice president in Continental White Cap Company which was the market leader in the production and distribution of vacuum-sealed metal closures for glass jars. Peter Browning had to make changes in White Cap by taking company to next level in technology and developing of adding a competitive plastic closure technology to stay competitive in the market. Also he needed to change some of the values in the company and its employees who have worked there
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