success factors for the low-cost airline industry Figure 1 illustrates the process followed to determine the key success factors (KSF) in the low-cost airline industry. It is adapted from the process developed by Grant (2005: 93). The texts highlighted in red are the responses to the questions posed in the model and serves as the inputs to the discussion on the KSFs for the low-cost airline industry. Figure 1. Identifying key success factors in the low-cost airline industry. Cost As consumers
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Situation Analysis: Entrepreneur Robert Deluce introduced Porter Airlines in 2006 aiming to create a higher value experience for its customers compared to other major players and competitors in the Canadian airline industry such as Air Canada and West Jet. The brand image is designed to provide upscale and refined service to its customers‚ giving the sense of traveling in first class with free amenities that competitors provide at very high prices such as meals‚ beverages‚ wine‚ etc. Even thought
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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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RYANAIR – THE LOW FARES AIRLINE: WHITHER NOW? 1. Ryanir is the airline company that would become Europe’s most popular‚ and possibly most controversial one in the following years. Ireland’s Ryan family founded it in 1985. That year‚ Ryanair flew a single route‚ from Waterford‚ Ireland‚ to London in a small 15-seater aircraft. In the early years‚ Ryanair flew primarily between Ireland and the U.K. However two big shifts in the 1990s changed that. Firstly the European Union’s "Open Skies" policies
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Looking externally‚ some of the biggest threats for Delta Airlines include the September 11th terrorist attack and the sluggish worldwide economy. Both the state of the economy as well as the September 11th terrorist attack made downsizing inevitable for Delta. Unfortunately for Delta Airlines‚ this caused an unexpected loss of knowledge due to the 11‚000 employees that left the company after they offered employees a favorable
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Phoenix‚ California‚ Hawaii‚ and Savannah GA. Allegiant Airlines offers low prices travel packages. These packages include air‚ rental car and hotels. Allegiant was founded in 1997 in Fresno‚ California. In 1999‚ the company flew passengers between Fresno and Las Vegas utilizing a DC-9 aircraft. In December 2000‚ Allegiant filed for bankruptcy and Maurice J. Gallagher Jr. obtained control of the company. In June 2001‚ Gallagher reorganized the airline to a low cost model. He moved the company to moved
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The parent company of American Airlines (AA) says it will cut around 15% of its workforce. American Airline which filed for bankruptcy protection‚ also wants to make changes to its staff pensions. The airline lost about $884m and more in the first nine months of 2011. AMR’s chief executive‚ Thomas W Horton said in a letter to his employees "We are going to use the restructuring process to make the necessary changes to meet our challenges head-on and capitalise fully on the solid foundation we’ve
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almost 30 years ago. Our old environment was highly regulated in terms of how the airlines operated economically. Before the Airline Deregulation Act of 1978 the CAB (Civil Aeronautics Board)‚ now the FAA (Federal Aviation Administration)‚ regulated all domestic air transport as a public utility‚ setting fares‚ routes‚ and schedules. The CAB was the driving force behind the entire airline industry. If an airline wanted to start service or change fares they would have to petition the CAB for that
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HISTORY OF AMERICAN AIRLINES American Airlines‚ Inc. (AA) is a major airline of the United States. It is the world’s largest airline in regards to accumulated passenger miles. American Airlines took off on April 15‚ 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York‚ heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation‚ the head quarters
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Executive Summary Porter Airlines is a continued success in the short haul air travel business. Its low cost structure has enabled them to be proactive in the industry and gain a fairly large market share. Porter’s strategic successes include its quick turnaround time upon departure and arrival‚ its competitive ticket pricing‚ web ticket sales and its exceptional customer service. In addition‚ Porter’s low cost and low maintenance on their Q400 turboprops give them a competitive
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