friendliness‚ individual pride‚ and company spirit. Twenty-seven years ago‚ Rolling King‚ owner of floundering commuter airline‚ and Herb Kelleher‚ King’s lawyer‚ got together and decided to start a different kind of airline that would provide a short-haul‚ low-fair‚ high-frequency‚ point-to-point service in the United States. The company began service on June 18‚ 1971 with flights between Dallas‚ Houston‚ and San Antonio (“The Golden Triangle” as Herb called it). Southwest Airlines is the fourth largest customer
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route network. AirAsia continues to pave the way for low cost flights through its innovative business selections. Vision: To be the largest low cost airline in Asia. Mission: 1- To be the best company to work for where employees are treated as a part of a big family. 2- Create a globally recognized brand. 3- Achieve the lowest cost so that everyone can fly with AirAsia. Values: 1- Safety. 2- High Aircraft Utilization. 3- Low fare-No Frills. 4- Streamline operations. 5- Point
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implementation of changes shown in Figure4. Figure4. A Systematic Approach: Eight Steps to Change. We shall use the impact of low-cost airline as an example to understand each step. In 2003‚ Lufthansa was facing intense competition from low-cost airline on short-haul domestic flights. In the fight for domination in the German skies‚ Lufthansa intend to match the low-cost rivals by expanding its own network of cut-price domestic and European services. 3.2.1 Step 1. Establish a sense of urgency
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Analyzing the cost leadership strategy of Southwest Airlines Fuel Hedging Other factors Hedging is an investment position intended to offset potential losses/ gains that may be incurred by a companion investment. Single type of aircraft usage from a single vendor Following a point to point model enabling the various new opportunities nearby once started serving to a new market Maximum 3 cabin crew as compared to average of 6 cabin crews Using less congested airports for being low turnaround
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EXECUTIVE SUMMARY Southwest Airlines provides short haul‚ high frequency‚ point-to-point‚ low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today‚ "If you get your passengers to their destinations when they want to get there‚ on time‚ at the lowest possible fares‚ and make darn sure they have a good time doing it‚ people
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the Texas area. As a low-budget airlines‚ it initiated a price war in the market. Initially it was operating from the Dallas’ Love Field (LUV) airport. By 1993‚ Southwest was the seventh-largest airlines in the US and had won the "triple crown" award of the airlines industry 12 times for overall performance. The Southwest Model: The company’s model consists of several employee enhancing and empowering philosophies such as: The usage of non-conventional models for low-cost‚ having fun at work
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Macro-enviroment suggest that there is a huge scope of growth for AirAsia in Asia. The huge population with rise in middle class and a lot of disposable income together with the absence of affordable forms of transportation post a high demand for AirAsia as a low cost airline. It is also anticipated that due to the rapid urbanization trends the air travel market will continue to grow at a fast pace. The geographical structure of Asia which is archipelago will also contribute to the air transport. Example: between
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company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? 3. What are the key policies‚ procedures‚ operating practices‚ and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy? 4. What are the key elements of Southwest’s culture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher‚ the company’s spiritual
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Capabilities‚ Distinct Competencies and Competitive Advantage 6 5. The Virgin ‘Blues’ (Strategic Issues) 7 5.1 Positioning in the Market 7 5.2 Challenging Economic Conditions 8 6. What to Do with Virgin Blue? (Strategic Options) 9 6.1 Cost Leadership Strategy 9 6.2 Focus Strategy 9 6.3 Differentiation Strategy 9 6.4 Strategy Analysis and Choice 10 7. Virgin Blue Flying Ahead (Strategic Implementation) 11 7.1 Business Level Strategy 11 7.2 Corporate Level
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Threat of New Entrants is low The airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The main concern for this is the cost of entry. The airline industry is one of the most expensive industries‚ due to the cost of buying and leasing aircrafts‚ safety and security measures‚ customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands
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