Southwest Airlines is a major airline company operating in the United States. The company was founded in 1967 in Houston‚ Texas by Herb Kelleher and Rollin King. The company’s vision was a low-cost‚ no-frills airline that was safe‚ affordable‚ and fun. Out of that vision‚ and following and arduous inception‚ the company has become one of the largest U.S‚ airlines‚ getting more travelers to their destinations than any other U.S. airline‚ and making a profit while doing it. Southwest Airlines
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1989. This policy were known as "two airline policy" valid for three years and was directed at benefiting both Irish carriers Aer Lingus and Ryanair. The new policy ruled that the two major Irish airlines will not compete on any international route and they both had to have separate routes-European Union deregulation of the airline businesses from 1997; set up a number of low-cost airlines offering no-frills services. This deregulation enabled Ryanair to open new
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success of Southwest is mainly linked to its pricing strategy‚ it positioned itself as a low-price‚ short hauls and bare bones operation. There are numerous distinctive characteristics that had lead to the success of Southwest’s pricing strategy‚ this report has summarised these characteristics into four key categories and followed by a detailed explanation. These key factors appear to be niche marketing‚ cost containment‚ employee commitment and conservative growth. Niche Marketing While every
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largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. AirAsia always tries to attain the lowest cost so that a majority of people can afford to fly through its planes and hubs. Although AirAsia expanded its business to many countries‚ the shared values of AirAsia as a Low-Cost Carrier never change. Value consistency across different markets helps AirAsia establish good brand reputation and awareness. 2.2 Strategy In order to make the low fare
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TABLE OF CONTENTS INTRODUCTION This report is about new management accounting techniques that AirAsia can apply in their organisation to enable them to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). In this report‚ it’s also stated types of new management accounting technique and the important of these techniques. Besides‚ this report also explain in detailed about balanced scorecard for example‚ the definition‚ person that responsible in introduce this techniques
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CASE : 4 LUFTHANSA 2003 : ENERGIZING A DECADE OF CHANGE CASE PROFILE PROBLEM IDENTIFICATION: The Basic question arises that why Lufthansa has survived‚ and even prospered‚ when so many legacy carriers have not‚ after facing so many crisis. What was the primary means through which CEO‚ Jurgen Weber‚ changed the culture of the organization? In organization theory terms‚ how did the structure of Lufthansa change between1991 and 2003 and What are the advantages
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AirAsia is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia’s largest low fare‚ no frills airline. AirAsia was a pioneer of low cost flights in Asia. It is also the first airline in the region to implement fully ticket-less travel and unassigned seats. The airline was established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001‚ the heavily-indebted airline
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that could influence Southwest include high fixed costs‚ excess capacity‚ low differentiation‚ and price war. Fixed costs in the industry mean the costs of planes‚ fuel‚ pilots‚ flight attendants‚ and additional staff for luggage and customer service. All of these factors need to meet governmental regulations. Further‚ the company had to hire professional employees in this industry and cost the company a lot of money. In order to recover these costs‚ airlines are willing to maximize capacity of each
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differentiation: Even with the entry of low cost carriers‚ the sector lacks adequate product differentiation – almost all airlines tend to converge on similar competencies for differentiation. From time to time‚ airlines seek new competitive advantages‚ such as greater leg room‚ in-flight entertainment‚ on-ground services etc in order to differentiate themselves and ease price competition. Low Switching Costs: Switching costs between various airlines remain low. Airlines have tried to mitigate this
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Case Analysis: The US Airline Industry in 2009 Introduction Throughout it’s more than 100 years of existence; the Airline Industry has struggled with firms’ ability to cover their costs of capital. The industry experienced many years of difficult with relatively short durations of sustained profitability (Grant‚ 2010). The airline industry history can be broken down into two distinct eras‚ the regulation era‚ prior to 1978‚ and the deregulation era‚ post 1978. During the regulation era‚ with
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