Case Summary and Important facts Despite the fact the airline industry had 87 new-airline failures in the US over the past 20 years. David Neeleman convinced a group of investors and quickly raised $130 million from venture-capital community. With its strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft and focused on innovation, providing the most valuable and the most excellent travel experience, low-cost, point-to-point service to large metropolitan areas with high average fares or highly traveled markets that were underserved, mainly on central and Western routes in the US. During 2001 and 2006, the airline industry was facing a number of external stress, such as the 911 terrorist attacks, Iraq War, SARS, high price of petroleum, ect. The airline industry in US has been challenged and many of firms were bankrupt.
Who are some of the major competitors? Southwest competes against many low-cost carriers or low-cost subsidiaries of larger carriers. Southwest's main low-cost carrier competitors are AirTran and JetBlue Airways. Its other competitors include American Airline, United and Delta. Because of its efficient cost-saving strategies, Southwest's 37-year streak of profitability is unmatched in the airline industry.
Introduction Despite the recession of American airline industry, JetBlue Airway’s profitability and productivity were still growing sharply after the terrorist attacks of September 2001and the distress of SARS in Asia areas in 2003. Therefore, the management decided to raise funds by initial public offering (IPO) in order to enforce the growth strategy. This article will analysis the advantages and disadvantages of JetBlue’s IPO by SWOT analysis, then, the recommended price will be provided calculated by P/E ratio and DCF methods and the limitations will be demonstrated as well. SWOT analysis of JetBlue: Strengths 1. JetBlue has a professional and experienced leadership team who dare to implement the innovations during the worst period in airline history.
Except one or two, all other airports are part of the National Airport System of the USA and they are government owned. Due to the problems with the recession in this country and the economical world crisis, the government finds difficult to keep airports efficient and competitive. The government has an urge to look for private sector investments for its airports, due to the lack of subside available for them. An important case of privatization is the Terminal 4 at JFK Airport. The terminal is managed by JFKIAT (JFK International Air Terminal), a joint venture between the following companies: LCOR JFK Airport, LLC, Schiphol USA Inc., and Lehman JFK LLC.
PAN AM AIRLINES VS. TRANS WORLD AIRLINES (TWA) I chose to research two American iconic airlines: PAN AM and TWA, which paved the way in the airline industry from the 1920s until their decline in the 90s and at the turn of the century. Pan American Airlines, also known as PAN AM started out as the largest international air carrier in the United States from 1927 until 1991. It was both a scheduled air mail and passenger service operating from Key West Florida and its home base in Havana, Cuba. It shaped the International Airline industry with its fresh innovations which led to it being a major airline company. Some of these innovations included the widespread use of jet aircrafts and computerized reservation systems.
After landing in Seattle he exchanges the 36 passengers for the parachutes and the money and instructs the pilot to fly to Mexico. Somewhere over Reno, Nevada, he amazingly jumps from the plane using the back stairway. Did he survive? Many stories surfaced over the years of people claiming to be DB Cooper. However in 2011 the most credible one surfaced.
He flew nonstop from Los Angeles to New York in 7 hours 28 minutes and 25 seconds. The H-1 Racer influenced the design of a number of World War II fighters including the Mitsubishi Zero, Focke-Wulf Fw 190,and the F8F Bearcat. Although never confirmed the H-1 racer was donated to the Smithsonian in 1975 and put on display at the National Air and Space Meuseum. Next I will discuss his movies. Howard Hughes was born into a wealthy family and when his parents passed in 1925 he had 75 percent of his family business.
In 2000, both manufacturers believed that Asia would register the world’s highest growth rate over the next 20 years. This is a big part of the reason why Airbus decided to develop the A380. The Boeing’s competitive response against the A3XX will affect the sales of the plane. Initial sales of plane – Financial success depended on getting enough early sales to drive down costs through learning curve effects. The basic idea was that unit costs, such as direct labor, declined as a function of cumulative output.
Southwest Airlines – 2008 Case Study Executive Summary Millions of people fly everyday. Southwest airlines provide low-fare travel among 58 cities in the United States. Although the airline industry suffered greatly in the aftermath of September 11, Southwest was able to continue to hold strong. Southwest airline continues to maintain steady sales as much of the industry was affected by changes in laws/regulations and competition entering the market. In the following report there is a brief introduction to Southwest Airlines and their strategy and then what, if anything, they need to do or not do to remain at the top and competitive in the airline industry.
Analyse the attractiveness of the airline industry pre-9/11. There had been several structural changes in the global airline industry for the last decades. Some of the main factors are: globalisation, deregulation, technology improvements, and ongoing improvement in the jet engines in order to make it longer routes Pre 9/11, the demand for air travel increased due to the rise of world GDP, rise in world trade and investment (economic influence). In addition, the demand for travelling increased due to the growth of the number of retirees (social influence). This was a major opportunity within the airline industry since the global number of passengers increased from 450 million to 700 million between1990 and 2000 mainly due to the retiree that were travelling for leisure.