Alaska Airlines ran its business satisfied with complacency and dependent on customer loyalty and goodwill (Avolio‚ Patterson‚ & Baker‚ 2015). While Alaska Airlines was thinking the business could sustain this practice‚ many changes were occurring that would have a ripple effect and adversely affect the airline (Avolio‚ et al.‚ 2015). One executive stated it started as far back to 1999 when the airline was succeeding despite themselves due to fortuitous fuel costs and a good economy” (Avolio
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Continental airlines case The biggest challenge that the continental Airlines is grappling with is with regards to their operational efficiency. Their previous decision of oursourcing key functions like reservations‚ payroll and EDS were causing a delay in flow of information thus hindering data based decision making in the company. Most decision thus were being made not by what data said but by the “hunch” or “intuition” which often proved wrong. Lack of real time data‚ complex system of booking
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“The world commercial airline industry is one of the most diverse‚ dynamic and perplexing in the world ” (Globale Airline Industry Program). The airports are exceptionally complex facilities and highly renowned for the variety of services and resources it provides to both the airlines and its users. Airlines and airports are inextricably intertwined together and none of them can survive without the other. The aviation industry is growing at an exponential rate. The demands for an effective and efficient
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globalized world where people and goods are moving farther‚ faster and cheaper than ever. The Indian civil aviation sector too is presently witnessing a boom with a host of private airlines taking to the skies. Leading players in the Indian aviation industry include Air India‚ Indian Airlines‚ Jet Airways‚ Sahara Airlines‚ Kingfisher‚ Spicejet‚ Paramount‚ Indigo and Go Air. While the growth rate of the civil aviation sector has slowed down in the mature international markets‚ it is increasing at a
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(CRM) in Airline Industry: Today’s global marketplace‚ airlines are countered with unstable and highly competitive business environment. Most airline companies perceive that it is increasingly important to react quickly and effectively to changing demand patterns of the customers. The challenge is maintaining profits in the face of forceful competition. The opportunities are in managing customer relationships to earn customer profitability that can contribute to the firm profits. If airlines do not
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Philippine Airlines‚ Inc. (abbreviated as PAL and also known historically as Philippine Air Lines) operating as Philippine Airlines‚ is a flag carrier of the Philippines. Headquartered at the Philippine National Bank Financial Center in Pasay City‚[2][3] the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name.[4] Out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City‚ Philippine
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LALA LAjpatrai College | | |AIRLINE INDUSTRY | |SERVICE SECTOR MANAGEMENT | | | |
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Corporate Strategy---European Airlines 1993-1997 ⇨ Back ground and PEST analysis For many years‚ European Airlines are considered to be feed by the government. Before 1990s‚ the introduction of deregulation‚ this market was highly controlled by the government. Automatically‚ the result is high price as well as poor management and service. Consumers‚ of course‚ complained about the bad perform of them. Like most of the state-owned businesses‚ although some of the airlines intended to lower their price
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working on the problem‚ he chose to eliminate the problem by using reverse psychology such as penalizing their incentives such as downgrading their accommodation such as from five stars to three stars. The aim of the company was to re-structure the airline without putting their publicity at risk. The need to hire younger staffs to be in line with the new image became crucial for Silvertail. The existing pool of older crews suffered tremendous consequence such as benefits and privileges was reduced and
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While the major airlines in the United Stated were making a lost of approximately $8 billion‚ Southwest was the only airline company that was profitable as well as facing a rapid grow-with a 25 percent sales increase in 1992. In 2005‚ Southwest was the sixth largest airline in United Stated. The success of Southwest is mainly linked to its pricing strategy‚ it positioned itself as a low-price‚ short hauls and bare bones operation. There are numerous distinctive characteristics that had lead to
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