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
Today it has nearly 400 Boeing 737 series of aircrafts and operates in more than 59 cities across America. In 2011, it completes 40 years of its existence. Its mission is to provide the customers with highest quality of personal services company. It has been able to sustain its profitability through the turbulent phase of post 9/11 period and current recessive economy even though the rest of the important airlines like United and Eastern were struggling to survive. After deregulation in 1978, the airline industry became highly competitive.
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.
If the business goes into debt each shareholder will only lose the amount of share capital they have invested and not their personal possessions and they will decide what will be done with profits. The government is not involved in its running. They provide an extensive international route schedule with code-share and franchise partners. They operate daily flights to more than 600 destinations worldwide. They carry approximately 32 million passengers a year.
Because of its efficient cost-saving strategies, Southwest's 37-year streak of profitability is unmatched in the airline industry. Here is a little information about its major competitors: • AirTran Holdings - is one of America’s largest low-fare passenger airlines. The airline has managed to achieve low operating costs despite relying on a hub-and-spoke system, in which most of its flights originate and terminate at its hub in Atlanta, Georgia. • American Airlines - the second largest airline in the world based on available seat miles and revenue passenger miles. On an
Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007). Furthermore revenue has risen from €231 million in 1998 to €2,714 million in 2008 and net profits have increased from €48 million to €480 million, over the same period despite the worldwide recession and the high oil prices. (4.1) External Environment Analysis Purpose of an external environment analysis is to identify or develop a finite list of opportunities that could benefit a firm and threats that could be avoided. Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. The external analysis can be divided into macro environment and industry analyses.
It would focus on short-distance flights of typically 600 km or one hour with high traffic efficiency. Many strategic approaches of budget airline business model’s operations differ from the more traditional of full service airlines model. 6 main factors can be identified, which are illustrated in the table below: Budget airline | Full service airlines | | | Lower overall service levels | Higher overall service levels | | | | | Rapid turnaround times | Slower turnaround times | | | Similar fleet | Diversified fleet | | | | | Higher density of seat | Lower density of seat | | | Secondary / smaller airports | Major airports | | | More internet and direct booking and
As a consequence, government infrastructure is often old, congested, and poorly maintained” (Edwards, 2009). Presently nearly all major U.S. airports are owned by state and local governments and subsided by federal government funding renovations and/or expansions. History/Background The United States boasts having approximately 15,100 airports serving the aircraft trade according to reports from the CIA World Fact book in 2010. Of this number, only 5,000 have paved runways and 4,172 are in state ownership. There are currently 378 airports that service commercial flights in the United States and only one is privately operated, which is located in Branson, Missouri.
Section 1: Background Airbus and Boeing hold an industry duopoly on the manufacture of aircraft for consumption by commercial airlines worldwide. Since 1995, Boeing has captured approximately two-thirds of the market share through sales of the 700-series aircraft. To challenge Boeing’s dominance and gain market share, Airbus is considering investing significant time and capital to develop a larger-than-ever jumbo jet in the Very Large Aircraft (“VLA”) class. Compared to Boeing’s 747, the A3XX would offer higher passenger capacity, wider seats and aisles, and added space sufficient for a cocktail lounge, exercise room, or showers. The A3XX would be equipped with four engines (versus the two currently offered by Boeing’s aircraft), potentially instilling added comfort for long distance passengers.
There were very few flights, only four nightly flights on the India/UK route and three fort-nightly flights for the India/Nairobi route. The ITDC (India Tourism Development Corporation) was started in the late 1960’s to provide international visitors the comforts of western living. ITDC also aided on the development of modern infrastructure (e.g. the Ashaka group of hotels). Today, tourism is the largest service industry in India, providing 8.78% of total employment.