Airline Industry Analysis Page 1 of 15 Memorandum Date: Subject: To: From: July 13‚ 2009 Airline Industry Analysis Dr. Matt Ford Adam Brown‚ Radmila Gogzheyan‚ Greg Huwel‚ Marie Meininger‚ Josh Riedel‚ Christina Ryan Introduction The following is an analysis of the airline industry. Using collected information and Porter’s “Five Forces” model‚ we will provide information about the attractiveness of the airline industry and provide a recommendation based on that information. Industry Background
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EXECUTIVE SUMMARY Spirit Airlines (SAVE) is an ultra low-cost‚ low-fare based in Fort Lauderdale‚ Florida that provides affordable travel opportunities. The IPO for Sprit airlines was offered on June 11th‚ 2011. The price of the stock at the IPO date was of $12.00. According to NASDAQ.com‚ the money that was raised on the IPO was $187.2 million dollars‚ with 5 million dollars in expenses. After the underwriting cost eliminated they approximately raised171.0 million. After the IPO sale
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Importance to economy The revenue of international airlines industry has increased from 476 billion USD in 2009 to 567 billion USD in 2011‚ a 9.3% year-on-year increase. This industry employs 56.5 million workers and accounts for US $2.2 trillion of the global GDP. Indian Aviation industry contributes to 0.5% of the India’s GDP and generates 1.7 million jobs. Technological Trends Major cost items for airlines are fuel‚ labour and maintenance. Airlines are able to reduce the cost/increase profit by
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would survive this restructuring. NOTE 1. Source: Jupiter Communications‚ 2000. WESTjET AIRLINES (A): THE CULTURE THAT BREEDS A PASSION To SuccEED Prepared by Ken Mark under the supervision of Professor Gerard Seijts Copyright© 2001‚ lvey Management Services INTRODUCTION It was April 17‚ 2001‚ and WestJet ’s market capitalization had just surpassed that of Air Canada ’s‚ the country ’s leading airline. "We ’re in the hospitality business and our culture is everything to us‚" stated Don Bell
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Southwest Financial Reports FIN/571 April 6‚ 2015 John Triplett‚ CPA Southwest Financial Reports Efficiency Ratios: There are a number of ways for companies to determine the efficiency of their operations. It is a good way for investors to see if a company is doing a good job with their operations as well. There are a number of different ratios that can be used to come up with different measures of efficiency. Most of these ratios deal with the turnover of cash. Additionally‚ most
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EWMBA 299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had
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Classic Airlines Problem Solution “Every company knows that it costs far less to hold on to a customer than to acquire a new one” (Gokey‚ 2002). As the commercial airline industry is changing at a rapid pace‚ Classic Airlines (CA) is faced with the challenge of delivering increased value within leaner consumer budgets. According to Plunkett Research Online‚ travel industry expenditures are decreasing and e-commerce is gradually replacing many jobs. With this report in mind‚ CA is set
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(DELTA) is the US’s largest airlines; it operates both internationally and domestically along with chartering air services for the carriage of passengers‚ cargo and mail. The airline flies to over 900 destinations globally and is considered to be a leader within the industry with almost 770 aircrafts in service. Starting back in 1924 as a crop dusting company down in Louisiana‚ merging with several airlines and rising through bankruptcy to become one of the strongest airlines in the business today.
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Executive Overview: Lufthansa is the largest airline in Europe in terms of passengers carried. By 2002‚ Lufthansa had become of the strongest airlines and top aviations groups in the world. Lufthansa had undergone a decade of fundamental change. Lufthansa was transformed from a state-owned‚ unprofitable national airline into one of the most profitable‚ privately owned aviation groups in the industry. The group turned a record loss of €350 million in 1992 into a pre-tax profit of €952 million in
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JetBlue VS Southwest This case is a report that compares the financials of two well-known firms in the airline industry‚ JetBlue and Southwest. JetBlue Airways Corp was established in the year 1998 with a vision of being a leading cost efficient passenger airline with competitive‚ low rates. The company has been working toward a goal of growing sustainably while also maintaining efficient liquidity. The second firm in this case report‚ Southwest Airlines Company is a much older airline‚ which was
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