The basis for Value Creation of a classical hub-organised airline consists of its operating hub and spoke strategy. This system implies that all flights move along spokes connected to a hub placed at the centre. In fact all long-haul flights depart from the hub‚ to which all passengers are flown in the first place. Therefor it is necessary to own a heterogeneous fleet to secure an outstanding efficiency of the long distance flights. To have an attractive and used to capacity hub at one’s disposal
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The Low Fares Airline---Ryanair By Kuan Li Introduction: Chief executive Michael O ’Leary blamed weaker exchange rates‚ greater competition and the continued impact of austerity measures in Europe for decline. However‚ sources at other airlines queried Ryanair ’s statement‚ saying they had yet to see similar signs (Thomas‚ 2013).In other words‚ that means the environmental impact of Ryanair is less than other airlines. At the same time also can know that Ryanair has strong actual strength. The
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Michael Womack Bus260 8/25/13 American Airlines SWOT Analysis After watching the CNBC special about American Airlines and a week inside their business I noticed several interesting things. Though it was dated few years ago many of the issues are still the same. They had several Revenue drivers; Cargo income‚ excess baggage fees‚ last minute departure fees‚ Postal cartage‚ and miscellaneous charges for meals‚ drinks‚ and accessories. These are not needed but sometimes are needed on certain longer
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David Neeleman Reinvents Airlines MAN 3303 March 21‚ 2012 Abstract The founder of JetBlue‚ David Neeleman started the company with the vision of “bringing humanity back to air travelâ€. (Neeleman 2003) His main mission was to establish a low cost airline that offered first class comfort and services to their customers at an economic price that everyone could afford. He believed in having everyone in the organization to focus on the main objectives which are to work as a team. He also
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report is to inform airline executives about the external forces affecting their industry and what they can do to keep up with the changing business atmosphere. The terrorist attacks of 9/11 had a grueling effect on the economy‚ and while most industries are almost back to their pre-9/11 financial status‚ the airline industry is lucky to break-even. This report will explain three leading trends that are forcing the airline industry to re-think their stance on strategic planning. The first trend
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Case Analysis on the Article‚ ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation‚ Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service‚ Budget‚ Limited-service‚ Premium-service Segmentation and Targeting: Psychographic‚ Behavioral‚ Geographic and Demographic Positioning: Value proposition matrix (more for more‚ less for less‚ etc.) Conclusion and Recommendations: « SIA in marginal value proposition
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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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| Alaska AirlinesStrategic Corporate Social Responsibility Project | | | | Company Report 5/3/2012 | | | ALASKA AIRLINES Strategic Corporate Social Responsibility Project Mission Statement: The mission and vision of Alaska Airlines is that employees share an uncommon blend of integrity‚ professionalism‚ caring‚ resourcefulness‚ and spirit. Every day they strive to bring these values to life through behaviors and deeds that go above and beyond the ordinary. They call it “North
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American Airlines and US Airways Merger: Is it Good for Consumers? Is the new merger between American and US Airways a good thing for consumers or will it lead to higher ticket prices and less chance for people to travel? The latest merger between US Airways and American Airlines now gives people basically just four companies to choose from for their airline travel. Is this fair or is it creating a monopoly? The $11 billion dollar deal still has to be approved by American Airlines’ bankruptcy
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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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