Alaska Airlines (ALK) is an airline holding company that operates in out of Seattle. Alaska Air runs a mainline division which focuses on domestic and international flights under the names of Virgin American and Alaska Airlines. Then there are the fees and cargo portion of the company and the regional affiliates. The main driver of the companies revenue is the mainline division. Alaska Airlines competes with western based airlines such as Sky West and more recently Delta as they attempt to expand. It has a P/E ratio of 11.87 which is better than the industry average. However, over the past 6 months the market has severely undervalued Alaska Airlines. This seems to be on the basis of a short term view point, resulting from the cost of integration with Virgin America. …show more content…
The acquisition gave Alaska Air access to LAX and SFA which immediately began acting as major hubs for the company. Alaska Air has begun utilizing these hubs to the max and has set up 20 routes in the past 9 months, of which 75% have already become profitable. Alaska Air has plans for an additional 30 new markets over the next 6 months, most coming out of SFA or LAX. Alaska Air has begun maximizing SFA by increasing it's utility (places where people from SFA want to go) from 9% to 55% with expectations to reach 70% by the end of 2017. With the majority of the new destinations heading for major East Coast or Mid-west cities, Alaska Airlines is indicating that it is looking to expand. This expansion will begin to pay dividends in the form of their 23 code share agreements they have with airlines around the world. These codeshare agreements allow customers flying on different airlines to catch connecting flights on Alaska Air. The increase of destinations will in turn allow for more opportunities for the codeshare to go into effect providing another larger revenue
Air Canada has deliberately set its self around the domestic and also worldwide market of carrier industry. The aircraft has substantiated itself as a superior Canadian brand becoming a part of Star Alliance, joined different famous carriers such KLM, Lufthansa carrier, Thai aircraft and so forth. Moreover, Air Canada has code offering consent to in excess of 26 aircrafts including Swiss Airlines, Singapore Airline, Etihad Airways et
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 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.
In a high competitive world market and with the increasing rational buyers a company can only win by creating and delivering the best customer value than the others competitors do. To succeed, a company needs to use the concepts of value chain.
“Northwest Airlines is engaged principally in the commercial transportation of passengers and cargo.” (5) NWA is a complete full service air transportation carrier that is the forth-largest air carrier in the world that services over 750 destinations located in 120 different countries on 6 continents. They operate 2,600 flights daily around the world and operate more than 200 nonstop between the United States and Asia each week. Headquarters is based in Minneapolis/St. Paul. The main connecting hubs are located at Detroit, Minneapolis, Memphis, and Tokyo. Northwest employs 50,600 employees nationwide as of Dec. 31, 1998. (6) NWA also has 1269 Stockholders as of Feb. 26, 1999. (6) Northwest continues to improve cargo shipping by proudly dedicating 12 Boeing 747 aircraft and easily becoming one of the largest cargo airlines in the world. (4) Cargo is very profitable for Northwest because “Northwest has predicted cargo revenue will top the 900 million mark in 2000”. (3) The enormous fleet of aircraft contains 400 airplanes. (1) Northwest has subsidiaries wholly owned (Unless otherwise indicated by NWA) by Northwest Aircraft, Northwest Aerospace Training corps, MLT Inc, Express Airlines, and Express Airlines I. (6)
Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...
Southwest Airline’s greatest strength is their financial stability. They are able to maintain profits even when the industry is in economic crisis. Their financial success is in large part due to their low operational costs. Short haul, point-to-point trips allow them to save time and money. This not only provides faster trips to customers with shorter wait time, but also increase the amount of customer turnover which provides more profitability. Southwest should continue to operate at low costs so they may continue to provide low prices to their customers, since cheap flights is one of the keystones of the company.
Air Canada is Canada's biggest aircraft and the biggest supplier of booked traveler benefits in the Canadian market, the Canada-U.S. Trans outskirt showcase and in the worldwide market to and from Canada. In 2015, Air Canada together with its Air Canada Express provincial accomplices conveyed more than 41 million travelers, offering direct traveler administration to more than 200 goals on six landmasses. Air Canada is an establishing individual from Star
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
Emirates (Fly Emirates) is the national airline of the United Arab Emirates. It is one of the fastest growing airlines and is known for consistently turning a profit. Though Emirates is owned by the UAE government, is has “evolved into a globally influential travel and tourism conglomerate known for its commitment to the highest standards of quality in every aspect of the business” (The Emirates Story).
Through increased competition, especially Southwest, AirTran is only available mainly in the eastern United States. Customers needing to travel to the western US probably will choose another airline that could create brand loyalty for another airline.
Introduction Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connections in the 35 countries and it currently has 137 fleets.
...its competitors. -Hubbing: With hubbing, flights from various origins on spokes of the network are channelled through an intermediate location, where they change planes and are re-routed to their final destination. This way the airline can serve more locations with fewer planes. -Frequent Flyer programmes: These programmes provide discounts or bonuses to frequent travellers. The value of the bonuses increase as the mileage flown increase, the bonuses can take various forms such as, fare reductions, upgrades to better classes or even free tickets.