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. The second major changes took place in 2011, when they decided to restructure their functional units to achieve new strategic objectives that will increase operational excellence and customer satisfaction. In order to expand, Air Canada needs to launch new low cost airlines and start an aggressive global advertisement campaign to establish Air Canada as a new brand in the airline industry. Even though Air Canada’s decision to outsource the part of IT department was to reduce cost and focus on core business activities, but the main motivation behind it was to open new opportunities for innovation. In 2003, this airline company began to implement a multiple-vendor strategy in order to benefit from best and experienced vendors and their products.
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.
1.0 Introduction JetBlue launch its operation in February 2000. It is a domestic airline that provides superior customer services at low fares. This company is able to stand strong even after the tragic events of September 11, 2001. As a new entrant in the airline industry, JetBlue provides wider cabin and wider seats for the passengers and innovation IT programs such as Internet booking system to gain market share. JetBlue started to experience slowed growth from 2005 to 2007 in the competitive environment when major airlines start to expand their business into domestic businesses.
WestJet’s competitive priority relates to cost, quality and delivery. Cost – WestJet has been able to reduce its operating costs through standardization. By purchasing only one type of plane WestJet is able lower both maintenance and training costs, resulting in higher profits. These savings and profits allows WestJet to provide lower cost airfares to its customers, thereby having a competitive advantage over its competitors. Quality – WestJet’s culture emphasizes a fun and friendly atmosphere for all travellers and empowers employees with bottom-up management.
What advantages would such an approach give Boeing? a. Value Propositions Due to the mature market, operational excellences have been one of the choices for airline business to compete in the low-cost airline trend of the business. With IT system linked the significant information Boeing improve operational efficiency both itself and its customers, all of which want to pursue in aviation supply chain. b. Differentiation Boeing create total solution
The latest simulators for the F-22 and F-35 have highly developed tools that help in the training of pilots on tasks such as air-to-air combat, v visual identification, offensive/defensive basic flight maneuvers (O/D BFM) and aerial refueling. Whereas some pilots have cited the existence of some element of mismatch between what simulators teach and the actual field experience, the simulator developed for the F-22 and the F-35 has attracted the endorsement of pilots who argue that the advanced simulator is significantly closer to actual field experience than that of legacy training systems (Sepanski, & Killingsworth,
(3 ( Established in 1998 and started service in 2000 ( Goal has been to establish itself as a leading low-fare, low-cost passenger airline by offering customers high-quality customer service and differentiated products. ( Focus on underserved markets. ( 108 flights in 2002 and 316 in 2005 serving 32 destinations. ( By mid 2005, fleet of 77 new Airbus A320 Aircraft ( Stock price $20 in 2002 and peaked at $26.4 in 2005. • 4.
In 2000 it was listed on the stock market and 2002 they bought their rivals GO. The success of the company has not been a surprise and could be described by the precise planning of its operations and a clear vision including one type of plane, same number of seats per plane and point-to-point routing. (Yeoman et al.) One of the main drivers of EasyJets profits is their yield-based pricing policy. Based on demand and supply the price increases as more seats are sold thus creating incentives for passengers to book early and hence, the firm securing revenues prior to the flight date plus receiving increased profits for the seats sold closer to departure.
Advances such changing engines from piston to jet engines and new software allows aircrafts to function more efficiently with less wear and tear and for longer period of times. Additionally, Delta’s changes in depreciation from 1986 through 2006 had a positive effect on the company’s financial statements. Although depreciation does not affect cash flows or revenue, it does have an effect on the bottom line. By stretching out depreciation, Delta decreased its depreciation expense resulting in higher net income. This is very beneficial for Delta; the airline industry is always being pressure to show more profits and results.
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.