Airbus and Boeing focus on medium and long-haul jet aircraft with 100+ seats. They sell to airlines and leasing companies. High profile international airlines like British Airways, Virgin and Emirates buy and lease aircraft from Airbus
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.
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
United Airlines On the surface the Wall Street Journal (WSJ) report sounds very impressive. As if the homework done and the facts and figures provided show they know more about the airline and their business than possibly the airline itself knows. I think the WSJ may have a few good points about the cost of the flights from San Francisco to Washington, D.C. But they can not possibly know everything that goes into how and why and airline provides flights to certain segment of customers. For an airline to simply apply a percentage or portion of the costs of airport fees, baggage handlers, ticket agents and building charges to each flight to cover the costs of sunk or overhead costs would most likely eliminate 60 to 70 percent of the flights they provide.
Mission It was designed for passenger purposes. The design allowed a spacious cabin with 50% more floor space than the next largest airliner, the Boeing 747-400. Airbus A380 is currently ensuring wider seats and aisles for more passenger comfort and provides seating for 555 people in standard three-class configuration or up to 853 people in full economy class configuration. Engine The A380 is available with two types of turbofan engines, the Rolls-Royce Trent 900 or the Engine Alliance GP7000 . Trent 900 core incorporates the swept fan technology of the stillborn Trent 8104.The GP7000 has a GE90-derived core and
The aircraft option for travelling is one of the most popular forms of transportation available in Britain, with cheap holiday packages indulging many locals, as well as Heathrow Airport being a stopping ground for over 32.8 million overseas visitors in 2007. This form of transportation is also a cause of controversy regarding the proposed expansions where the environment has become a leading topic in regards to whether expansion is good long-term investment. Proponents of the expansion, such as Strathclyde’s Professor William Banks, president of the Institute of Mechanical Engineers (McKie, 2009) argued that by building new runways less fuel would be burned thus less amount of carbon emission. He implies that the more runways would be available, the less time airplanes would need before taking off; since planes were burning fuel even when on ground and that more runways meant less waiting time and less amount of fuel burnt. There has also been progress in finding environmental friendly alternatives such as biofuels, which does not contain fossil carbon and does no harm to the atmosphere.
Question 1: What are some of the possible reasons why Delta may have extended the lives of flight equipment and changed residual values four times since 1986? Answer: Taking in consideration that calculating the life of an aircraft requires multiple estimations and assumptions such as the long-term usage of the equipment, the associated costs to maintain equipment, the residual life and salvage value, and economic conditions; it is clear that Delta, like all other airlines, needed to update the residual value and depreciation of the equipment. One of the reasons why Delta decided to extend the useful lives of flight equipment is because technology and the industry allowed for these aircrafts to simply last much longer. Aircrafts are better maintained and consistently updated with new technology. 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.
The remodeling of the airline has created a more pleasant atmosphere for the customers. They have specifically targeted business travelers. Southwest’s policy allowing customers to change flights without penalty appealed to customers. But what really made Southwest stand out to both customers were its frequent flights serving a ton of cities at convenient times and low prices. Though
The cheapest way to travel around the world. Write now Article Tools by James Johnson The cheapest way to travel around the world is to get paid for traveling around the world, and there are several ways to do that. To start with, there are always airline companies looking for employees will to travel. If you have the right qualifications and can pass their entrance requirements, you can get a job that requires you to travel. Grant you there are few airlines that go all the way around the globe, but they will usually have exchange programs with sister airlines and you can go any where.
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.