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JetBlue started by following Southwest's approach of offering low-cost travel, but sought to distinguish itself by its amenities, such as in-flight entertainment, TV at every seat, and Sirius satellite radio. JetBlue operates one of the youngest fleets in the skies with an average age of 5.1 years between both types of aircraft. The airline mainly serves destinations in the United States, along with flights to the Caribbean, The Bahamas, Bermuda, Barbados, Colombia, Costa Rica, the Dominican Republic, Jamaica, Mexico, Peru, and Puerto Rico. As of October 2013, JetBlue serves 84 destinations in 24 states and 12 countries in the Caribbean, South America, and Latin America. JetBlue took off on February 11, 2000, with an inaugural flight between New York City’s John F. Kennedy International Airport and Fort Lauderdale, Florida.
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.
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
Southwest Airlines is only one of its kinda unique enterprise. It is the fifth largest passenger airline in the United States, currently operating 520 Boeing 737s throughout the United States. The company essentially functions as a point-to-point operation rather than a hub-and-spoke service unlike its competitors. (wwws.ameritrade.com/cgi-bin/apps/Main) Southwest has unique various competitive advantages, which have led it to be a strong performer within the industry. Due to Because of the growth in the low-cost segment of the airline industry, Southwest has tomust continue to innovate and differentiate itself from others to perpetuate its success and popularity.
Air Canada: Flying High with Information Technology case analysis Air Canada is the largest airline company in Canada serving to 35 million passengers annually and providing direct passenger service to more than 175 destinations worldwide. As we know, airline companies’ day-to-day activities, such as ticket booking, customer service, cargo and other operational functions, are hugely dependent on information technology. That is why, as it is mentioned in this case study, Air Canada has used the capabilities of IT to solve their company’s problems. The first issue was to cut costs and gain efficiency. 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.
Southwest Airlines Case Analysis This case is about: Sustaining profitable growth in a highly competitive and regulated industry. Define the problem: Southwest needs to maintain profitable growth while maintaining their low cost / low fare differentiation strategy. Background: • Headquartered at Love Field in Dallas, TX • Southwest was incorporate on June 18, 1971 • Initial fleet of (3) Boeing 737 served only three Texas cities- Houston, Dallas, and San Antonio • Southwest has been profitable for 38 consecutive years • Southwest is the United States most successful low fare, high frequency, point to point carrier • Southwest operates more than 3400 flights per day making it the largest US carrier based on domestic passengers • Southwest has nearly 35,000 employees nationwide • Southwest is traded on the NYSE under the symbol “LUV” • Beginning in the fourth quarter 1976, Southwest paid its first of 138 consecutive quarterly dividends to our Shareholders • 2010 Financial Statistics o Net income $459 million o Total passengers carrier 88 million o Average passenger load factor: 79.3 percent o Total operating revenue: $12.1 billion • The Company's fleet has an average age of approximately 11.4 years. • The average aircraft trip length is 653 miles with an average duration of one hour and 55 minutes. • Southwest aircraft fly an average of 6 flights per day, or almost 12 hours and 30 minutes per • Performance- enhancing Blended Winglets have been added to the 737 fleet to improve performance and fuel Key Issue: Operating cost increases threaten Southwest’s low cost / low fare competitive advantage.
In the 25 years since its inception. Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales” (University of Phoenix, 2008). The following challenges and opportunities will describe Classic Airlines’ issues which will have an impact on their future decisions and ventures. Creating customer value is essential for a company’s marketing success. “customer value is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and
Delta Airlines Managing Corporate Responsibility and International Operations Introduction Delta Air Lines Inc. is an international airline based in the United States and headquartered in Atlanta, Georgia. The airline was formed in 1924 and has grown into a major airline that serves more than 160 million customers each year. With its unsurpassed global network, Delta and Delta Connection carriers offer service to more than 350 destinations in nearly seventy countries on six continents. Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircrafts (About Delta, 2012). This paper will discuss the Airlines strength, weaknesses, challenges, and identify its competitors.
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. Statistical data from 2005 reported 96.5% of the total passenger traffic in the United States flew from 138 airports. The Branson, Missouri airport opened in May 2009 and is the only privately owned, privately operated commercial