Case statement: Our mission is to maintain our profitability in face of rising competition and fuel cost. Background: “AirTran Airways, a subsidiary of AirTran Holdings (NYSE: AAI), is a low-fare airline designed for business travelers, offering Business class, new planes with XM Satellite Radio and EasyFit Overhead Bins, assigned seats, and our accommodating frequent flier program A+ Rewards. AirTran Airways' mix of low fares and an affordable Business Class with excellent customer service and one of the world's youngest all-Boeing fleets has continued to strike a chord with the public.” (www.airtran.com) Internal Factor Evaluation Matrix Weight Rating Weighted Score Strengths 1. Remaining Profitable .18 4 .72 2. High Service Quality .14 4 .56 3.
With negligible switching costs, budget airlines pose a threat. However, airlines defend themselves by differentiating their services or forming strategic code sharing alliances with other airlines A strategic partnership that Emirates stroke with Qantas airlines in 2013 gives the airline a distinct advantage over other Middle Eastern airlines. The partnership will see Emirates passenger load factor increase, with 200 destinations in six continents offered to its customers. What keeps the competition high are the low switching costs from one service provider to another. Pricing Emirates Airlines prices its services slightly above its competitors.
For example, a flight that is only at 85% capacity will fly for the same price as a flight that is at 100% capacity. Continental Airlines, has a competitive benefits program as well, but it lacks the flight area which both United and American Airlines offer. We felt that American and United Airlines offered the best benefit programs, although American does not offer free flights from day one of employment, they offer many other compelling incentives such as, personal emergency assistance, vacation buying programs, credit union assistance, as well as flight discounts for their employees. References Web Pages: 1. http://www.ual.com/home/default.asp 2. http://www.southwest.com/ 3. http://www.continental.com/ 4. http://www.aa.com/ Texts: 1. Managing Human Resources : Sherman, Arthur / Bohlander, George / Snell, Scott
Competing with not only with domestic carriers but also with foreign carriers, Delta Air Lines has to do everything possible in order to win the business. Well-funded airlines in the Gulf regions like Emirates, Etihad and Qatar Airways who increase their services to the United States from their hub in Middle East make it impossible for domestic carriers like Delta to stay in profit ("DAL 12.31.2014 10K," n.d.). Furthermore, these international carriers who are either funded or supported by the government are able to purchase the newest wide body aircrafts. Having a newest fleet amongst its competitors pleases the customers and helps save more fuel on the long haul international flights saving the company money on fuel and increases the customer service at the same
How many times have an average person flown in an airplane, did people ever think what the world would be like without them? Airplanes have provided people with opportunities to go all over the world to experience different cultures and places. They also create jobs for many people which contributes to how they boost the economy. In conclusion, they appear as a more clean way to travel, helping out the Earth. The airplane was one of the most important inventions due to it creating jobs, creating easier cultural access, causes economic boosts, and created less pollution than most means of travel and also has an interesting history.
JetBlue’s marketing strategy focuses on offering a high-quality customer attentive low-cost product that provides amenities other airlines are unwilling to provide on their low-cost fares. The goal is to attract new customers while retaining current customers and to bridge the gap between low-cost fares and quality air travel, which JetBlue believes need not be mutually exclusive (JetBlue Airways Corporation, 2015). Overall this strategy has been very successful, attracting new customers and earning repeat customers through its innovative additions to its aircraft and by having more free amenities than any other airline. Additionally JetBlue Airways has been ranked highest in customer satisfaction among low-cost carriers in North America by J.D. Power for the last 11 years in a row (JetBlue Airways, n.d.).
The low cost and no frills strategy is make travel affordable at low cost. The company only operates one type of aircraft which is Boeing 737 to help maintenance cost low. Southwest was the first airline to use E-ticketing in this way customer can reserve spot and buy ticket on their web and allow less expense in printing tickets. Medium measured airports which allowed them to produce better time performance and less fuel costs so plane do not have to wait in the line at the runway. The core value of the company of “LUV and fun” makes the company great place to work that gives customer with a great experience.
Southwest is very well known for its best on-time record, best baggage handling and has the pride of getting least customer complaints in the airline industry. The airline has won the airline industry's Triple Crown award for Best Airline continuously for five times from 1992-96. The airline is also famous for its innovative discount and convenience packages introduced by it from time to time including the frequent flyer program, fun fares, same-day airfreight delivery service etc. Southwest Airlines in the U.S is having some success at weathering the current industry turbulence. They’re showing profits and/or expanding their routes to take up the slack left ... ... middle of paper ... ...s it simple.
Southwest has a unique approach to motivating their employees. Because of this, Southwest was ranked second in Fortune's top 100 companies to work for and also Fortunes top 10 admired companies. The secret to Southwest's success is simply caring about the employees and treating them as though they matter, because they do. One of the biggest perks to being an employee of Southwest airlines is free airfare. Southwest gives free airfare to employees, spouses, parents, and children of employees.
This is mainly because of its presence in key markets, particularly in Boston and New York, that positions it favorably in the industry and, in turn, allows it to draw agreements with other airlines. As a matter of fact, it is the largest domestic carrier at New York’s JFK Airport and a top carrier in Boston. Therefore, partnering with Jetblue is an advantageous proposition for many internationa... ... middle of paper ... ...nt sale of the LiveTV will allow it to further reduce its debt burden while continuing to invest in aircraft for its growth plan. With improving cash flows and more reasonable debt load, the airline will be in a strong position to start paying a dividend to its shareholders towards the end of this year. Alternatively, it could also choose to resume its share repurchase program.