The A380 made its first commercial flight in 2007. Capable of flying over 8000 nautical miles without refuelling, the A380 would be ideal for long-haul passengers and freight applications. By 2009, A380 production was several years behind its contracted delivery schedule and some airlines cancelled their orders. The survival and future success of Airbus, including the employment of 52,000 people at 16 sites in France, Germany, UK and Spain, depended critically on A380 meeting its sales targets over the medium and longer term. Airbus and Boeing focus on medium and long-haul jet aircraft with 100+ seats.
TITLE OF ASSIGNMENT CRAFTING AND EXECUTING STRATEGY STUENT MOHAMMAD HOSSAIN INSTRUCTOR DR. RHONDA POLAK COURSE TITLE STRATEGIC MANAGEMENT –BUS 599 DATE: - OCTOBER 16, 2011 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. Trends in the US airline industry have an impact the performance and strategies of the airlines. As a result, the Jet Blue has struggled to survive. The trends of U.S. airlines industries are discussed as follows: (1) Increased crude oil pricing: fluctuations crude oil price lead to passenger fees for revenue generation, This dramatic price increase caused airlines to struggle to offset the cost of fuel. Presently, gas prices have dropped.
In 2013, SEA was ranked the 16th North America’s busiest airport in terms of passenger traffic, with approximately 34.4 million passengers (4.8% growth from the previous year) (FAA, 2014). The number of takeoffs and landings or operations increased to 317,183 (2.5 percent growth from 2012). The airport was ranked the 18th busiest in terms of cargo dimensions, with approximately 322,531 United Sates metric tons of mail and freight passed through its facilities (FAA, 2014). II. Problem For Sea-Tac, there appears to be a high possibility that the airport will need major new facility additions as there are problems related to inadequate capacity (FAA, 1997).
Industry The global airline industry consist of airline firms offering domestic air transportation and/or cargo through routes based on a regular schedule. Companies whose main business were providing mail using the air transportation of mail is also a part of the industry. In December 2006 the International Air Transport Association (IATA) that passenger revenues would rise by five percent to $475 billion and cargo revenues would rise by six percent to $380 billion by 2007. The IATA also predicted that the industry gain profits of about $2.5 billion since the 9/11 terrorist attack in 2001. There are three types of domestic airline carriers: network, low cost and regional carriers.
Their was more than 2 billion dollars in licensing in 2005 and over 200 licensees. More fortune 500 companies participate in NASCAR than any other sport. NASCAR racing is televised in more than 150 countries and 22 different languages. If you don’t find all that impressive then
Easy jet is the largest air line in terms of passengers volume – ‘59 million’ (Easy Jet corporate media file, p.3) in UK and internationally across 30 countries with flight scheduled services of ‘600 routes’ as well as the fourth largest short-haul carrier in Europe with a market share of ‘8%’ (Easy jet annual report, 2012, p.12). In order to promote efficient service to customers, they introduce speed boarding that gives passenger’s greater choice over their seat arrangements. Furthermore, the volumes of passenger’s turnover have increased their financial performance to ‘£317 million’ (p.9) profit before tax and after tax of ‘£255 million’ (p.19). Their annual report can be assess at http://2012annualreport.easyjet.com/downloads/PDFs/Full_Annual_Report_2012.pdf and http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/content/press-info-kit.pdf a. Table: The vocabulary of strategy in Easy jet airline (2012 annual report) Term Definition Example (including why chosen and evidence Mission Overriding purpose in line with values or expectations of stakeholders Their mission statement is to ‘leverage cost advantage, leading market position, and brand to deliver point-to-point low fares with operational
Air Canada: Flying High with Information Technology case analysis Air Canada is the largest airline company in Canada serving to 35 million passengers annually and providing direct passenger service to more than 175 destinations worldwide. As we know, airline companies’ day-to-day activities, such as ticket booking, customer service, cargo and other operational functions, are hugely dependent on information technology. That is why, as it is mentioned in this case study, Air Canada has used the capabilities of IT to solve their company’s problems. The first issue was to cut costs and gain efficiency. To solve this problem Air Canada outsourced the whole IT department to IBM and other vendors, except the core IT group to monitor the company’s IT standards and policies.
HARVARD BUSINESS SCHOOL 9-201-028 REV: APRIL 26, 2004 BENJAMIN ESTY Airbus A3XX: Developing the World's Largest Commercial Jet (A) Aviation is a great business to be in, provided you have limitless money at your disposal, limitless confidence in your ability to get everything right the first time, and limitless resolve and iron nerve,' EADS (Airbus) is betting the company on this aircraft. 2 On June 23, 2000, Airbus Industrie's Supervisory Board approved an Authorization to Offer (ATO) the A3XX, a proposed super jumbo jet that would seat from 550 to 990 passengers, have a list price of $216 million, and cost $13 billion to develop. Before the Board would commit to industrial launch, the point at which significant expenditures would begin, it hoped to secure orders for 50 jets from as many as five major airlines. While Airbus had been courting potential customers for many years-in fact, development had been underway since 1990-the ATO gave the sales force permission to begin taking firm orders for the plane with delivery starting in 2006. Airbus management announced the first orders for the A3XX at the bi-annual Air Show in Famborough, England, in July 2000.
Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007). Furthermore revenue has risen from €231 million in 1998 to €2,714 million in 2008 and net profits have increased from €48 million to €480 million, over the same period despite the worldwide recession and the high oil prices. (4.1) External Environment Analysis Purpose of an external environment analysis is to identify or develop a finite list of opportunities that could benefit a firm and threats that could be avoided. Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. The external analysis can be divided into macro environment and industry analyses.
Mohsen AmiriBesheli Human Resource Management in British Airways 0. Introduction to the British Airway British Airways is the UK’s largest international airline, flying to over 300 destinations, to the lots of international airports. British Airway is one of the biggest scheduled international passenger airlines in the worlds. The center of BA is Heathrow, London, UK. In 2007/2008 their moved nearly 33 million people.