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Brief introduction to american airlines
History of us airline industry
The history of the airline industry
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Over the years there have been many airlines that have come and gone. Some only lasted a short time, while others have seen many generations. There are a plethora of factors that decide whether or not an airline will survive, and an effective marketing mix along with a realistic PESTE analysis is near the top of the list. When it comes to airlines that have stood the test of time, American Airlines and Delta immediately come to mind. These airlines saw the birth of the commercial aviation and the regulations that came with it. They also saw the Deregulation of 1978 as well as surviving the commercial aviation grounding because of the terrorist attacks on September 11, 2001. Both airlines survived the Great Depression as well as weathering the storm of the Great Recession. The branding of American Airlines and Delta Airlines have been immediately recognizable through their effective advertising campaigns. Conducting a marketing mix and PESTE analysis will give further incite on how these airlines have been able to last through the birth of commercial aviation into the upcoming Next Generation Air Transportation System (NextGen) era of aviation.
American Airlines has a vast history that shows its innovation and longevity as a Part 121 air carrier. American Airlines was established in 1930 as American Airways and primarily served as a mail carrier. In 1934 the airline was renamed American Airlines, and in 1936, they started operations on passenger flight ("History of amr," 2011). They continued with passenger flight through the 40s 50s and 60s. The 1970s ushered in the jet age, which made increasing flight services easier and more efficient("History of amr," 2011) . After deregulation in 1978 American Airlines moved t...
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...). Retrieved from http://news.delta.com/index.php?s=18&cat=39
Foust, D. (2009, May 14). How delta climbed out of bankruptcy. Retrieved from http://www.businessweek.com/magazine/content/09_21/b4132036798289.htm
Greenberg, P. (Performer) (2006). Inside american airlines [DVD].
History of amr corporation and american airlines. (2011). Retrieved from http://www.aa.com/i18n/amrcorp/corporateInformation/facts/history.jsp
McGrath, M. (2013, Nov 27). American airlines us airways merger officially cleared for takeoff. Retrieved from http://www.forbes.com/sites/maggiemcgrath/2013/11/15/the-new-american-airlines-lands-a-new-ticker-symbol/
United steelworkers USW; USW lauds delta's purchase of philadelphia-area refinery. (2012). Transportation Business Journal, , 116. Retrieved from http://search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/1011997555?accountid=27203
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
On October 28, 1978, President Jimmy Carter signed in law the Airline Deregulation Act of 1978. This law amended the Federal Aviation Act of 1958. According to (Lawrence, 2004) “its purpose was to encourage, develop, and attain and air transportation system which relies on competitive market forces to determine the quality, variety, and price of air services.” The Airline Deregulation Act (ADA) was to be slowly phased in over a four-year period. As stated by (Lawrence, 2004) “it provided, among other things: For the phase-out of the CAB and its authority over domestic routes and fares, For the phase-out of existing economic regulations formerly constituting barriers to competition, Safeguards for the protection
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
The original Frontier Airlines was Denver's hometown carrier for 40 years before it folded its wings in 1986 following its purchase by New Jersey-based People Express. The former Frontier carried 87 million passengers over the years and was nationally recognized for both the quality of its service and its outstanding safety record.
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
In the airline industry, Southwest Airlines is considered a true innovator. By shaking up the rules of flying and improving upon inefficient industry norms, Southwest has quickly grown by leaps and bounds. From the very start, Southwest Airlines' goals were to make a profit, achieve job security for every employee, and make flying affordable for more people (Southwest,2007). Southwest has not strayed from these goals. It does not buy huge aircrafts, fly international routes or try to go head to head with the major carriers; and thanks to a great planning, Southwest airlines has become the most successful airline company in the U.S., if not the world.
Northwest Airlines began service on October 1, 1926, flying mail between Minneapolis / St. Paul and Chicago. (2) They started passenger transportation in July 7, 1927. (2) Throughout the years Northwest has grown steadily by acquiring new system routes in the northwestern region of the USA.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
Delta Airlines has been a vibrant company in the airline industry, with great success over the years. Delta airlines started as a crops dusting company to serving more than 572 destinations, in 65 countries on six continents (Allan, H., David. H. ,2012). Delta airline moved its headquarters from Monroe, Louisiana to the city of Atlanta, Georgia. The great management strategies have portrayed from time to time to be fruitful even in the verge of a recession. With these consistency in delivery of services, it is clear that the company is out to outdo its competitors and turn out to be the greatest airline in the world.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
When analyzing Delta, you do not have to search very far before quite possibly one its strongest attribute rears its head. Based on calendar 2000 data, Delta is the largest U.S. airline in terms of aircraft departures and passengers enplaned, and third largest as measured by operating revenues and revenue passenger miles flown. Delta is the leading U.S. airline in the transatlantic, offering the most daily flight departures, serving the largest number of nonstop markets and carrying more passengers than any other U.S. airline. Delta Air Lines transports more passengers worldwide than any other airline. Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
This concept was challenged by Southwest Airlines by marketing itself as a cost leader. Their entire growth curve in the industry has been attributed to its cost effective strategies which has made it more efficient and successful than traditional airlines.