South Africa’s airline industry’s companies have been fighting to stay in the black over the past year‚ with SAA getting a R6bn recapitalization (which they claim is not a bail-out)‚ new entrants like Velvet Sky not lasting a full 12 months in the industry and established low cost carrier company Kulula.com’s parent company Comair slipping into the red for the year ended December 2011 (Comair declares six-month loss amid rising costs‚ (n.d)). I will be discussing the macro-environmental forces that
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Marketing Plan for Breeze Airlines 24 April 2010 Marketing Plan for Breeze Airlines Air has become the most preferred method of transportation for many people around the world and more travelers are looking for affordable ways to travel between destinations. Consequently‚ the increase in customer’s demand for cheaper fares has created an excellent business opportunity for low cost airlines to emerge. Low cost carriers have been successful satisfying customer’s demand for cheaper
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the existing brewery business and try to make it more profitable. The Kingfisher Airlines with its existing debt of close to Rs. 7‚000 crores facing the acute problem of debt burden‚ Bank Arrears‚ Income Tax problems for not paying TDS‚ Delayed Salaries‚ Fuel Dues‚ Aircraft Lease Rental Dues‚ Erosion of net worth and brand image. With the staff going on strike and airlines on the verge of stopping because of airlines suspended from IATA‚ the one possibility is to sell off the NPA assets to some other
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Southwest Airlines was founded by Rollin King and Herb Kelleher and began in 1971‚ servicing Dallas‚ Houston and San Antonio. In the mid 1980’s Southwest Airlines was the first to offer the frequent miles program. Allowing the passenger to bank traveled air miles to be latter used credit for a free ticket or reduced airfare. Southwest Airlines were also the pioneers of the senior discounts‚ fun fares and the fun packs. 1984 marked the 4th consecutive year Southwest Airlines ranked number one in
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SINGAPORE INTERNATIONAL AIRLINES Air travel remains a large and growing industry. Despite being plagued by several factors such as overcapacity‚ commoditization of offerings and cutthroat rivalry to name a few‚ it facilitates economic growth‚ world trade‚ international investment and tourism. This case study will analyze the external factors affecting the airline industry‚ analyze the internal factors affecting Singapore International Airlines (SIA) and critically discuss the different generic
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The United States airline Industry is a complex business that is affected by many internal and external factors. The successes and failures of this industry are constantly fluctuating over time. While deregulation brought great triumph and positive change‚ the tragedy of 9/11 was the initial factor leading to the downward spiral of failure that the current airlines face today (Siddiqi‚ 2009). Currently‚ the International Air Transport Association reported that the airline industry suffered a net
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in February that led to the cancellation of over 1‚100 JetBlue flights and adversely affected the travel plans of thousands of passengers. Though numerous interviews and meetings during the past day allowed Barger to outline his vision for the airline‚ he realized that he needed to move quickly in implementing that vision to maintain the confidence of customers‚ employees‚ and shareholders. Just a few miles outside Barger’s window was John Fitzgerald Kennedy (JFK) Airport‚ where JetBlue began
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Business Models in the Airline Industry January 30‚ 2013 Winter term 2013 Outline Evolution Hub-and-spoke route networks Legacy carriers Low cost carriers (LCCs) Ultra low cost carriers (ULCCs) Regional and charter carriers Evolution Before deregulation Full service network carriers No low cost models No price competition (same price on a given route) Full-quality service Point-to-point route networks After deregulation Proliferation
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JetBlue Airlines Strategic Management Case Analysis Introduction to the Company History of the Firm JetBlue was established in 1999‚ and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million‚ the most ever raised for a start-up airline‚ from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV‚ a first in the industry. In 2004 the
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United Airlines Case United Airlines was founded in 1926‚ which gives the airline nearly 90 years of experience. United faced many challenges throughout its years of operation‚ however the airline has still managed to be relevant and competitive in its industry. Theses challenges include: mergers‚ acquisitions‚ war‚ the Great Depression‚ labor union strikes‚ buyout attempts‚ terrorist attacks‚ bankruptcy‚ and recessions. The Airline deregulation Act of 1978 was the genesis for the airline industry we know
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