2. Wengart Aircraft has been spending a lot of time on rework and that is now acceptable in their company. This has had a different effect of how the customers feel and they are now complaining about this need for rework and lack of quality from Wengart Aircraft. They need to change their corporate culture to reflect the need for quality the concept of TQM cannot be successful going forward. Corporate culture must support continues improvement and quality needs to be seen as a way of life.
They were not living up to the demand for their services, and had technology systems that were outdated. When management dove into these problems they also found out they were lacking in the areas of diversification and integration. In addition, the morale of their employees was in the dumps and they were losing money. These problems can clearly relate to one another and using the 7-S model will make connections between these factors and how they interact with one another (Palmer, Dunford, Akin 2009). When examining the problems at hand, it becomes clear that Boeing should focus on structure.
The cuts mean for example, a Boeing 767 flying overseas typically would be operating with six instead of seven attendants in business class. Cutting a flight attendant from a transatlantic route could potentially compromise safety. Also new layoffs add to more service problems. The Company
These cuts the company has to make resulted in employee dissatisfaction. The cabin crew staff has been addressing their demands through these strikes several times. This could means that employees and management do not have strong relationships. The “Front face” of BA is heavily unionised. Thus resulting in employees being unsatisfied with the management of the business which later could impact the businesses relationship with its stakeholder through the recession, however this strategy in the long run could result in employees not losing their jobs as BA are benchmarking their competition who significantly seceding in the recession without tarnishing its relationship with its employees.
Before becoming captains, pilots must earn sufficient fly hours. However, flying schools do not have enough instructors to train enough new pilots. In response, the airline industries face increase labor costs as they raise pilot salaries in order to attract pilots. (3) Post 9/11 Aviation Security: after the 9/11 terrorist attacks, Congress passed the Aviation and Transportation Security Act (PDF), which created the Transportation Security Administration (TSA) and mandated that federal employees be in charge of airport security screening Jet Blue was a discount airline carrier. It offered passenger law fares; operated point to point system.
After two straight years of financial losses in 1994, CEO Ron Allen rolled out a new strategy called “Leadership 7.5.” Allen targeted to reduce Delta’s cost per each available seat mile from more than 10 cents to 7.5 cents, which would match that of major competitor Southwest Airlines (Bryant, 1997). Along with a new company strategy a change followed with Delta’s human resource strategy. This changing policy devastated employee morale and resulted in a decline of customer service, efforts to unionize, and dissatisfaction among personnel. Delta couldn’t keep the past primary policy about human resources so there were several significant changes in Delta’s organization and corporate culture. There are many programs that Delta has built after passing through the cost-cutting reformation in 1997 for getting back its capabilities on customer relationships like rewards and recognition program above and beyond and more.
Making travel to these areas much more expensive than what is really necessary. Quite possibly making the cost to these areas for travelers so much more expensive than most would be willing to pay. This could just be a ploy for the airline to stop this flight service from San Francisco to Washington, D.C. because they are in fact not making enough to cover the fuel and crew costs for these flights. Rather than announce the cancellation of this service themselves, they could be feeding information to the WSJ to help get the word out that they plan to stop this service in the near future. And this article is helping them to plant that seed.
If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change. Both the CEO and CFO are ignoring good marketing and customer relations. By ignoring both of these principals Classic Airlines revenue is suffering. With holistic marketing everything matters. If the CEO and CFO adopt this principal Classic Airlines will thrive in the future (Kotler & Keller,
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.
Considering the information provided in the case, McPherson himself made some assumptions that the airline flying to London should have identified him off their computer as a close- connecting passenger and that considering the fare paid by a passenger like him; he should have been placed in a moderately loaded flight. 3. Strategic issues as to London-based airline's strengths and weaknesses and competitive concerns. While the company is operating below the expectations of clients as to its core functions (as indicated by delays of flights and some ineffectiveness of some agents and other maintenance personnel), the London-based airline is strong in terms of its attached services (e.g. after-flight services).