RISK MANAGEMENT PRACTICES IN THE AIRLINE INDUSTRY by Sharon Fernando PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS In the Faculty of Business Administration Financial Risk Management O Sharon Fernando 2006 SIMON FRASER UNIVERSITY Summer 2006 All rights reserved. This work may not be reproduced in whole or in part‚ by photocopy or other means‚ without permission of the author. APPROVAL Name: Sharon Fernando Degree: Master of Arts Title of Project:
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Dynamic Pricing in the Airline Industry R. Preston McAfee and Vera te Velde California Institute of Technology Abstract: Dynamic price discrimination adjusts prices based on the option value of future sales‚ which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination‚ and confronts the theories with new data from airline pricing behavior. Correspondence to: R. Preston McAfee‚ 100 Baxter Hall‚ California Institute of Technology‚
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External Factors: Oportunities * Acquisitions * Asset leverage * Financial markets (raise money through debt‚ etc) * Emerging markets and expansion abroad * Innovation * Online * Product and services expansion * Membership of any airline alliance will help to increase reach via code share agreements * Leverage on association with coffee company like Starbucks to provide onboard coffee by creating awareness in all coffee outlets * International flights and global expansion * Potential
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GROWTH OF AIRLINE INDUSTRY IN INDIA In December 1912‚ the Indian State Air Services in collaboration with UK based Imperial Airways introduced the London -Karachi - Delhi flight‚ the first International flight to and from India. In 1915 Tata Sons Ltd. started regular air mail services between Karachi and Madras and on January 24‚ 1920 Royal Airforce started regular airmail services between Karachi and Bombay. Construction of Civil Airports in India started in 1924 (Calcutta‚ Bombay and Allahbad)
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Airline industry value chain Inbound logistics Primary activites Stock control airlines must store and handle fuel‚ food‚ and drinks. Stock is managed to ensure reductions in stock turnover‚ thus reducing costs and wastage. Route selection airlines must choose their flight routes. These will be selected upon desired routes‚ and deals negotiated with the airports. Airports are selected for their prime location‚ to allow consumers to get to their desired location. This then entails the
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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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Introduction Generally‚ agro-based industry refers to an industry that adds values to agricultural raw materials through processing in order to produce marketable and usable products that bring forth profits and additional income to the producer. Under the Ninth Malaysia Plan (2006-2010)‚ development of agro-based industry will be focus on increasing utilization of agricultural produce in the production of high value-added products as well as processing activities. Private sector is encouraged
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Economic Profile: Airline Industry Introduction The airline industry provides services for passenger and cargo transport. Over the years the airline industry has faired fairly decent. That is‚ until the September 11 tragedy in 2001. From 1995 through 2000‚ the airline industry earned about $23 billion then lost about $35 billion from 2001 through 2005 (McCabe‚ R.‚ 2008). There are many factors that indicate the economic downfall of the airline industry after the September 11 incident. The purpose
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The airline industry is a large and growing industry. Air travel plays a very important role in economic growth and world trade. It is expanding for either of the following reasons that is for business purpose or leisure travel. It helps in increasing the international investment as well as tourism. The airlines have made it more comfortable to travel from one place to another‚ and now are offering reasonable rates. Affordable rates encourage people to travel further to new places. As a result‚ people
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Center for Advanced Human Resource Studies (CAHRS) CAHRS Working Paper Series Cornell University ILR School Year 2005 A Resource-Based View Of International Human Resources: Toward A Framework of Integrative and Creative Capabilities Shad S. Morris Cornell University Scott A. Snell Cornell University Patrick M. Wright Cornell University This paper is posted at DigitalCommons@ILR. http://digitalcommons.ilr.cornell.edu/cahrswp/284 CAHRS at Cornell University 187 Ives Hall Ithaca
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