They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights? Explain. Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely.
What substantiation is required for the company to support its treatment of the corporate jet? Conclusions 1. Personal flights taken by an employee on an employer-provided aircraft are included in the employee’s compensation according to Regulation Section 1.61-21(g)(4)(i). 2. When the corporate jet is used for personal travel, the amount taxed to its employees should be determined by the Aircraft Valuation formula as stated under Regulation Section 1.61-21(g)(5).
The cost minimisation strategy employed by British airways during the recession proved to be an influential choice. It forced BA to be sensitive and cautious about cost and the passengers' volume has been cut down in terms of business and tour travellers. The industry competition is getting fiercer as by the joining of the lower cost airliners which indicates BA has to master the value creation process, or the value chain, with business perspective and cautious. In addition, the cares on the stakeholders in each stage of the business should be paid attention to, or it may leads to the negative impact to BA such as the staff strike took place in January 2007, which gives BA's brand image a big shock. These cuts the company has to make resulted in employee dissatisfaction.
They offer their clients cost saving solutions to overseas flights as well as time and money as they offer a choice of best value flight fares and routings suited to the client’s itinerary. | National agencies description and Organisation example: | National business travel agents operate from one country, but they have braches in other countries as well. For example Flight centre is a national agency that is an Australian retail travel company, but they have many branches in the UK and target small and medium enterprises. They try to meet the needs of business travellers as well as leisure
On the other hand, if the customer’s payment is invalid, Flyaway.com assumes credit risk. Issue: Should Flyaway.com report its ticket revenue on a gross basis (as a principal) or net (as an agent)? Flyaway.com (“Flyaway” or the “Company”) must determine whether its ticket sales revenue should be reported gross (for the amount billed to the customer) or net (for the amount retained after remitting customer payments to the airlines). ASC 605–45 (Revenue Recognition—Principal Agent Considerations) addresses transactions and activities including: 15-2(b). Services offered by an entity that will be provided by a third-party service provider.
. Running head: JETBLUE AIRWAYS CASE STUDY ANALYSIS 1JetBlue Airways Case Study AnalysisMorgan Bocciolatt, Lindsey Hadlock, and Julie FruscioIthaca CollegeJETBLUE AIRWAYS CASE STUDY ANALYSIS 2JetBlue Airways Case Study AnalysisProblem DefinitionThe situation described in “JetBlue Airways: Regaining Altitude” is one that,unfortunately, more than a few people have experienced. The many problems that unfolded inthe course of only a few short days, were all caused by one main issue, a lack of communicationand communication training in a crisis situation.Company ObjectivesWhat once was a vision has now become a reality that defines JetBlue as a company.Neeleman envisioned the ultimate flying experience for his customers.Every seat would come equipped with a television that featured dozens of free channelsprovided by satellite signal. Finally, to keep costs down, JetBlue would offer a virtuallyunlimited supply of appealing in-flight snacks instead of soggy meals that no one reallywanted. (Argenti, 2009, p.100)It is obvious that David Neeleman and JetBlue set out to exceed customer satisfaction and ingeneral, tend to go above and beyond what the average airline has to offer.
The development of technology like the internet has most probably had the biggest impact on the travel and tourism industry. The internet has decreased the need for independent travel agents now as the internet provides people with a means of booking their own holidays online, as well as being able to use comparison websites such as Expedia, or directly with the holiday providers and transport services. Now even the smallest of travel and tourism providers have responded to technological developments so that they have their own websites and email addresses, online booking, and payment methods. When the recession hit, the number of business travellers declined, as they were trying to find cheaper ways of communicating with fellow business relations by using methods such as telephone and video conferencing instead of paying to book flights and accommodation. These methods have increased because it helps the business to reduce their expenses and watch their budget more carefully.
Marketing Strategy Relationship marketing is the current marketing strategy Classic Airlines is using. The goal of relationship marketing is to build lasting relationships between the company and its customers (Kotler & Keller, 2006). The Classic Rewards Program has been Classic Airlines primary method of implementing their relationship marketing strategy. This program uses discounts on seat
NAA had relatively few producers of its interior business. Some of them made complete seats; others made coverings and cleaning services. Fell Fab had two manufacturing sites and ability to transfer specifications electronically between them made it competitive. The seat covers production process: Although making seats to an airplane seems easy, different features and variations in airlines seats made it difficult. Even for a single aircraft type different seats were requested, first class seats were different from economy class seats.
jetBlue would have benefited from backup/emergency IT support at the data center to aid the ticketing and reservation system. This includes allowing for additional “virtual” personnel to come online via VPN (virtual private networks) from remote locations to support the system. Although there are costs associated with provisioning stand-by IT resources, this is a fraction of the cost associated with jetBlue’s image recovery efforts. Additionally, jetBlue didn’t take advantage of the ability to send messages PINto-PIN from SmartPhones such as the Blackberry. Plane and flight crews wanted to help, but were scattered all over the country and didn’t know what was going on or where to go.