One problem has been the economic recession. Other than business travel, personal and pleasure travel has sharply decreased due to the lack of disposable income on special trips and ventures. Another problem is the increase in jet fuel costs. With rising tensions in oil rich countries and uncertain supplies of fuel, the cost of jet fuel has skyrocketed causing many airlines, including Southwest Airlines, to increase the cost of travel to the customers. Another constant challenge is the rivalry between the airline management and the employees’ labor unions.
In addition, more people have been employed to manage the growing operation system. It has been expensive to construct new facilities and adapt old ones. Nevertheless, with good and affordable infrastructure, new large aircraft can solve many problems in our airports, such as missed flights and delays. Works Cited Chiu, C. & Walton, C. (2003). Impacts of new large aircraft on passenger flows at international airport terminals.
As AirTran’s employees continue to embrace Southwest Airline culture, the issues emerges from this organizational change remain priority. Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f... ... middle of paper ... ...er, S. (2012). Managing Human Resources (11th ed.). Mason, OH: South-Western.
Nevertheless, linking IS and the company’s business strategy became more challenging as the company looked at growth opportunities. For example, there were concerns that expanding internationally required operational changes that challenged its principles. Management kept sight of the business strategy at Southwest Airlines and tried to position the company to drive both cost and customer service benefits from IT (Ross & Beth,
The reason being, previously, different airline companies could employ human labor force to conduct the task. They could screen the passengers thoroughly, check on what they have carried and then permit them to board the plane (Sabuncuoglu et al. 75). In fact, the procedure could take more than 20 minutes for one passenger. By the end of the day, the airline firm would incur a lot of costs to employ the task force, and also, they end up serving fewer customers.
With the ability to fly 600 to 700 hours a year versus 300 to 400 at a part 135 charter operation, along with having a schedule, the regional airline is looking very appealing. The regional airline is not a career destination, but it allows for a better quality of life while I increase my experience to get hired on by Southwest. The major drawback in a regional carrier is the low pay, but with the recent demand and increased difficulty to find qualified pilots, pay is beginning to increase. A large benefit that a regional carrier provides over a charter airline is the schedule. Having a schedule would allow me to plan time and events with my family and friends, instead of always having to hang by the phone in case the dispatcher calls.
They have been known for exceptional customer service, as noted in their mission statement, however in 2014 one headline read, “After decades of prompt departures and arrivals, its punctuality has been abysmal since August” (Southwest Airlines). This unpleasant and unexpected turn came when Southwest attempted to make a change in the time allotted for turnarounds at the airport. Perhaps they became a little too greedy with everything that was going right for them. Their plan was to crunch time and make money by having more flights in less time. Unfortunately, their plan did not work exactly how they had hoped; one delay caused a domino effect and less than 60 percent of their flights were arriving or departing on time (Southwest Airlines).
In fact these companies had plenty of time to analyze Southwest's model and they could copy their ... ... middle of paper ... ... or that position. (as others' airlines employees were complaining that pilots and flight attendants were accommodated in different level hotels and pilots were always on fight with mechanics). If the teamwork is so important for the company, providing training on teamwork and building the team (what Southwest did) is also really important. There are many other things to talk about, but I would like to conclude that Southwest people were company's most important asset. And Southwest having all the operations and processes set up to be a low cost carried would never succeed without contribution made by its' employees and managers.
With over twenty-eight thousand commercial flights per day in the United States carrying over one and a half million people, serious changes need to be mandated. Some of these changes have already come, but is that enough? Even though reducing the maximum number of hours pilots are allowed to be on duty would require more pilots, and cost more, pilots have less situational awareness when tired, endangering the lives aboard their aircraft, there is still no reliable method of testing fatigue, and . Aft... ... middle of paper ... ...ne of training to a qualified airline pilot is $70,000. This would take a colossal sum of money directly out of the airline’s profits.
This allowed British Airways World Cargo to wet lease 3 Boeing 747-800’s and use them to transport freight across the globe. However, due to the recent merging of British Airways World Cargo and IAG Cargo, this contract was terminated on the 30th April 2014 . Conclusion: This report has demonstrated that the Air Transport Industry is highly prone to change. As a result, the companies that operate within the industry must be able to adapt to the ever-altering circumstances that they are faced with. The report has also highlighted that some companies within different areas of the market have adapted well and are bringing in new initiatives and practices to continue the growth of their airline whilst others can be seen struggling to keep up with the ever changing nature of the air transport market.