Going public when the airline industry are still suffering from 9.11 attack is adventurous, especially it is even harder when the competition of the airline industry is severe, given the fact that 87 new-airline failure over the past 20 years. However, JetBlue has good management team with strong capability, and it has considerable competitive advantage compared to comparable companies, hence there are more opportunities and strengths than threats and weaknesses. JetBlue’s executive management team have rich experience in the airline industry. CEO David Neeleman has extensive experience with airline start-ups and worked in various low-fare flights. COO David Barger and CFO John Owen had worked in airline companies before joining JetBlue.
Executive Summary The events that lead to the debacle at Denver International Airport (DIA) are a perfect template to disaster. There were many causes of failure for their new integrated baggage system; however, one stands out as the root cause. On behalf of DIA and BAE the dysfunctional decision-making due to lack of knowledge on projects of this scope, had this project doomed from the beginning. Denver’s existing airport, Stapleton, was seen as a liability in the late 70s early 80s due to the booming economy at that time. It was determined in 1983 the airport needed to be expanded and ground was broken in 1989 for what is now DIA.
Running head: United Airlines Analyzing Managerial Decisions: United Airlines Brandon McGhee Saint Leo University MBA 540 The WSJ recently presented data suggesting that United Airlines was not covering its costs on ﬂights from San Francisco to Washington D.C. The article quoted analysts saying that United should discontinue this service. The costs per ﬂight (presented in the article) included the costs of fuel, pilots, ﬂight attendants, food, etc. used on the ﬂight. They also included a share of the costs associated with running the hubs at the two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc.
Maureen Abajah LOG 125 Chapter 7 Case 7-2 U.S. Airways Overview: US Airways is and has been beleaguered with a myriad of issues, from financial issues to consistently below average ratings when it comes to baggage handling and customer service. They have filed bankruptcy several times and merged with other airlines and now have to work on a way to get to a competitive edge in the industry with all issues facing air carriers in general. Case Questions: 1. If you were the CEO of US Airways, what would you do to confront the competition from its low cost competition? Based on the summary table provided in the text book – the first thing that jumps out is how disproportionate the labor volume/number of employees is to the number of aircraft that the company has.
U.S Airline Industry Since the founding of the first U.S. Airline in 1913, the industry has experience a certain amount of difficulty and “consistently failed to earn returns that covered its cost of capital” (Grant, 2010). The industry has faced dire situations resulting in some airline having to file Chapter 11 Bankruptcy (Grant, 2010). Although the airlines have had some periods of prosperity, even during those periods they barely made profit, if at all. Many industries face many issues, but in the airline industry, the primary problem or area of concern is the inability in maintaining consistency in profitability.
Productivity Commission Inquiry: Economic regulation of airport services Submission by Virgin Blue Airlines Non-confidential version 18 April 2011 Contents 1 Introduction and Executive Summary 1.1 1.2 1.3 1.4 1.5 2 Airports have substantial market power Airlines have limited ability to negotiate pricing outcomes with airports There is strong evidence of monopoly pricing and service standards The current regulatory regime is not effective Proposed model for economic regulation of airports Page 4 4 4 4 5 6 7 7 8 8 8 9 10 10 11 13 13 14 15 15 15 16 Background to the economic regulation of airport services 2.1 2.2 2.3 2.4 2.5 The privatisation of Airports Initial regulation 2002 Productivity Commission inquiry 2006 Productivity Commission review The current review 3 Virgin Blue’s business model and the importance of airport pricing 3.1 3.2 Virgin Blue’s business model: providing high quality service with a low cost base Airport aeronautical charges are a significant proportion of costs 4 Market power of airports 4.1 4.2 4.3 Overview Countervailing power as a constraint on the airports’ market power Changes in overall market power due to constraints from other airports 5 Negotiations with airports under the current regulatory regime 5.1 5.2 5.3 Overview Examples of Virgin Blue’s current experience in negotiating with airports Commercially negotiated outcomes will only be possible if airports have the incentive to negotiate and airlines have recourse to arbitration 16 17 6 Analysis of pricing and services at major Australian airports 6.1 6.2 6.3 6.4 6.5 6.6 6.7 7 Aeronautical Pricing Principles Overview of pricing since 2007 Airport aeronautical charges and agreements Evidence of increasing monopoly rents by the major airports Recent experiences of airport pricing Limitations of the Building Block Model Weighted Average Cost
A Case Study of The Boeing Company: The need to shift to a horizontally integrated organization Kenneth Leeson Embry-Riddle Aeronautical University MBAA 520 Dr. Peter O’Reilly July 20, 2011 Table of Contents Abstract 3 Background 3 Statement of Problem 4 Analysis 5 Operational Issue One- Poor Management of Employees 5 Operational Issue Two- Understanding the Consequences of Unethical Behavior 5 Organizational Behavior 6 Significant behavior issues facing Boeing; Need for New Leadership Techniques 6 Addressing the Lack of Communication between Leadership and Labor 7 Summary 8 Bibliography 10 Abstract The Boeing Company is facing the economic complexities of a global recession. This paper looks at the ability of The Boeing Company to make ethical choices for the stakeholders and add value to the organization by the ethical management of all its resources. Change is a constant in today’s global enterprises. The organizational stress on Boeing influences its organization’s ability to make clear choices. Boeing has experienced operational problems due to lack of understanding of personnel issues and unethical conduct.
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.
Case Assignment No. 1 – UPS Christmas Eve Snafu 2013 1. What occurred to prevent packages from being delivered on time? After reading the Wall Street Journal article, and doing further research online related to the UPS Christmas Eve Snafu in 2013, it is evident that UPS Air Services experienced a shortage of capacity at its main air hub in Louisville, Kentucky commonly referred to as “WorldPort” due to an unexpected spike in demand for last minute air shipments from online retailers resulting in thousands of packages not being delivered on time. UPS did not have the appropriate capacity to handle the large demand for last minute pickups from customers, delivery of packages into sorting facilities, and did not have enough aircraft available to transport the large influx of packages from their Louisville facility to their destination terminals in time to make it onto local delivery trucks.
List Objectives for the PR Campaign In order to explain its operations into the overseas market, JetBlue Airlines had to overcome a few stumbling blocks that occurred earlier this year. One major stumbling block occurred when JetBlue cancelled hundreds of flights due to icy conditions and a black log of stranded passengers and flight crews. Jenny Dervin, JetBlue Airlines company spokesman said a decision by JetBlue’s hub, Networks’ John F. Kennedy International Airport, to limit all airlines to two runways was a major stumbling block in the company’s efforts to get back on track. (JetBlue weather woes not yet overcome, CNN.com) David Neelman, Founder and CEO of JetBlue, repeatedly apologized for the wave of cancellations and delays and said, “I think the best thing we can do is say we’re sorry and give them their money back, and give them a free ticket and then kind of plead with them to come and fly again.” Once a passenger has a bad experience with any airline, that passenger will think twice before booking another flight with the same airline. JetBlue needed to devise a new public relations campaign to regain those customers who lost confidence in the flight service and to attract new customers who may be interested in using the new overseas services.