Case 1: Southwest Airlines 1. What is SWA’s strategy? What does it take to execute the strategy? Southwest’s strategy is to maintain low cost‚ low fares and frequent flights. SWA execute this strategy through emphasizes point to point routes‚ which means customers fly directly to their final destination. According to annual report of 1993‚ 80 percent of its customers fly non-stop to their final destination. Furthermore‚ SWA also pays off in shorter turnaround times and higher equipment. Therefore
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1. Discuss Porter’s Five Forces of industry competition‚ with relation to the entry of Southwest Airline in the airline market. The Porter’s Five Forces are as followed: Rivalry: The rivalry factors 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
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Scenario 1 FlyWithUs Airlines has started a new low-cost carrier service to link major cities such as New York City with small towns. A few of the airports that service FlyWithUs are located in remote areas and are ill-equipped to handle emergencies. The airline also has a charter service that flies to locations around the world. In some remote areas‚ where the airports are small‚ help may not be immediately available in the event of an accident or some other crisis. Due to a failure
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Scandinavian Airlines: The Green Engine Decision 1. Why should Scandinavian Airlines be concerned with environmental issues? What are some of the critical factors to consider? As our society evolves‚ our knowledge expands and our awareness grows. Today as more and more people realize the importance of sustainability‚ companies find themselves re-evaluating their strategies. Airline industries in particular are perceived as contributing to the global warming effect‚ and are therefore subject
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Case 2: Regional Airlines Case 2: Regional Airlines Case Introduction A+ for effort‚ Customer Service Pays for Itself In an extremely regulated and thus relatively uniform industry such as the commercial airline industry‚ the successful airline is the organization which sets itself apart from the competition. Within an industry that requires customer planning to interface with flight schedules and security measures‚ a major operational aspect which can aid an airline in gaining an edge on
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Marketing management Case study “Pegasus Airlines” Question no.1 Give examples of needs‚ wants‚ and demands that Pegasus customers demonstrate‚ differentiating these three concepts. What are the implications of each for Pegasus’ practices? Answer no.1 1. Examples of needs can be Pegasus customers need diversification. 2. Examples of wants can be customers want to improve airline industry and reflect their opinions. 3. Examples of demands can be low-cost airline‚ many destinations they want
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a revenue of $8.55 billion‚ American Airlines‚ Inc. (American)‚ principal subsidiary of Dallas/Fort Worth-based AMR Corporation‚ was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2‚200 flights daily to 151 destinations in the United States‚ Bermuda‚ Canada‚ Mexico‚ the Caribbean‚ France‚ Great Britain‚ Japan‚ Mexico‚ Puerto Rico‚ Spain‚ Switzerland‚ Venezuela‚ and West Germany. The objective of American Airlines revenue management effort was to maximize
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Case Study of Time-Critical Management of AOG at Latin Airlines Fig. EMV Analysis of the AOG options for Latin Airlines. As per the EMV analysis done above‚ The EMV of buying new component is $ 1‚403‚274 (Node B)‚ The EMV of getting the component from BCS is $1‚346‚556 (Node F)‚ The EMV of getting the component from ARC Solution and transporting it by Air is $ 1‚336‚704 and EMV of getting the component and transporting it by Land is $ 1‚329‚045. Based on the EMV done above‚ the optimum
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F . WARREN MCFARLAN Tale of Two Airlines in The Network Age: Or Why The Spirit of King George III Is Alive and Well! As Professor Roger McPherson’s wait to go through the security process a second time dragged on into its third hour on this Spring day in 2002‚ (all passengers had to be rescreened upon the discovery that one of the airport screening machines was unplugged) he was reminded of another delayed business trip and the role that information technology played in the story. At 5:30pm
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1. a. Delta Airlines Depreciation Method Depreciation Method Salvage Value For every $100 mil Depreciated Annual Depreciation Prior to 1986 Straight-line‚ 10 years 10% 100-(.1*100)=90 90/10=9 $9 mil 1968 – 1993 Straight-line‚ 15 years 10% 100-(.1*100)=90 90/15=6 $6 mil After 1993 Straight-line‚ 20 years 5% 100-(.05*100)=95 95/20=4.75 $4.75 mil b. Singapore Airlines Depreciation Method Depreciation Method Salvage Value For every $100 mil Depreciated Annual Depreciation Prior to 1989 Straight-line
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