SWA has an enviable record of constantly ranking among the top five major carriers in the Department of Transportation (DOT) Air Travel Consumer Report, with recognition for on-time performance, best baggage-handling and fewest customer complaints. Customer satisfaction ranks highly and reviews in publications such as Fortune magazine and the Wall Street Journal put SWA in the position of being one of the most admired companies.（IES UQFY BM semester 1,2012） Employment with the airline is highly sought after, with SWA willing to delay the purchase of new planes or office renovations in favour of protecting the jobs of their employees. This feeling of job security has led to high employee productivity and a forceful loyalty among staff. The unique organisational culture at SWA is one that takes a laidback approach to formal management programs and documented strategic planning practices, instead preferring to operate a company where employees work hard and have fun. These characteristics have led SWA to be a very successful carrier, with over 30 consecutive years operating at a profit.
JetBlue Airline LOW COST LEADERSHIP MODEL OPERATIONS - Low-cost leader because of full planes, hedging of fuel, pilot training, and maintenance costs - 100% ticket-less reservations - Agents work from home at a lower rate than other airlines - Pilots paid less because there is no seniority standing - Only offer snacks instead of meals, which helps to keep costs down SALES & MARKETING - True blue frequent flyer program - Satellite televisions free in every seat on the plane - Strong word-of-mouth from previous passengers - Several marketing awards noticing their hip and humorous advertising, 2002 & 2003 - First to book flights online, technology SERVICE - Self-service kiosks for those passengers who are in a hurry - Agents who walk around and help guests check-in, portable devices - Flights are never over-booked, also all passengers are assigned a seat - Pilots will load baggage to ensure on time departures - Leg room has been extended to 34”, from the industry standard 31” JetBlue has tried to position their company in the airline business as a low-cost leader that provides quality service. The problem with this type of position in the airline business is that although there are only a few substitutes, they are very strong. Many different new airlines have attempted to enter the market, such as People Express Airline, who in the early 1980’s attempted the same strategy as JetBlue and failed. JetBlue has been able to fight off rivalry from fellow competitors since they were incorporated in 2000. JetBlue has an economy of scale for cost on a seat per mile basis, even surpassing Southwest airlines.
People have high expectations on the London-based airline because of its reputation for an outstanding service. Likewise, they also expect that the high premium charged should be compensated by an excellent service. 2. Information technology structure. 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.
Winner: IBM is the best winner because it created the highest profits as the initial developer in blue ocean industry. Meanwhile, American Airlines also the winner as it adopted newly developed systems for its management efficiency. Stage2: The Government Intervention GDS companies tyrannized over small airlines and travel agents by discriminating booking fees and using 'halo effect'. In respond to the complaints of airlines and travel agents, GDS' discrimination was prohibited. Winner: Relatively small airlines and travel agents could overcome the obstacle of discrimination.
Both airlines adopted the business model of Southwest Airlines in the U.S. of cost reductions. Southwest flies point-point versus a hub, and utilizes much greater efficiency and turnaround time at the airport thus maximizing aircraft utilization. Both Easyjet and Ryanair operate a younger fleet than Southwest, average age of about 5.5 years compared to 11.7 years for Southwest, ideally resulting in lower operating costs with newer more fuel efficient aircraft (AirlineFleets, 2014). Easyjet’s operations differ from Ryanair in a few key areas. Easyjet flies to mostly primary airports, where Ryanair flies to secondary airports to further cut costs (Easyjet/Ryanair, 2014).
They began with three Boeing 737 aircraft serving three Texas cities- Dallas, Houston, and San Antonio. In 1978, the airline began a slow and conservative expansion across the United States that began in the west and gradually spread to the eastern portion of the country. Just after the company’s 18th anniversary in December of 1989, Southwest Airlines reached major carrier status defined by the Department of Transportation. Southwest has developed into the largest low-fare, high frequency, point-to-point carrier in the United States (swmedia.com). In 2011, Southwest Airlines celebrated its 40th anniversary of providing low-fare, high quality commercial air service, in addition to its 39th consecutive year of annual profit, making it the only major carrier in the United States to consistently provide annual profits to its shareholders (Southwest Airlines Annual Report, 2011).
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. The exhibit 1.6 shows the performance of JetBlue, even after suffering some recent setbacks that have severely affected profitability, it is second only to Southwest Airlines in profitability over the past three years. From the U.S. Airlines Cost Structure, JetBlue has the lowest cost per
Across all its fly-by-wire aircraft families Airbus’ unique approach ensures that aircraft share the highest possible degree of commonality in airframes, on-board systems, cockpits and handling characteristics, which reduces significantly operating costs for airlines. Dedicated to helping airlines enhance the profitability of their fleets, Airbus also delivers a wide range of customer services in all areas of support, tailored to the needs of individual operators all over the world. HISTORY Airbus is the world’s leading manufacturer of commercial jetliners and military airlifters, having evolved during the past 40 years on the vision, innovation and passion of its employees. The A300 became the world’s first twin-engine wide body jet, entering airline service in 1974. This was followed in the early 1980s by Airbus’ shorter-fuselage A310 derivative, and was joined later that decade by the single-aisle A320 – which developed into one of the most successful aircraft families in history with the A318, A319, A320 and A321.
The financial controller at that time Michael O’ leary had convinced Ryan to let him try and bring the company out of its financial difficulties. Southwest Airlines in the United States was the world's first low-cost airline. O'Leary introduced a strategy very similar to that of Southwest Airlines. These strategies saw a complete turnaround of Ryan Air losses and turn it into an it into a successful organization (Davy 2005: 3). Its operations have also expanded massively in geographical coverage: in the current financial year, Ryan Air operated 288 routes across 21 countries using 12 European bases, and plans to more than double its fleet in the next 7 years (www.ryanair.com).
According to the company, “Southwest is dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.” As of December 31, 2007, Southwest served 411 non-stop city pairs. Approximately 78% of the Company’s customers fly non-stop. Southwest primarily serves short-haul routes with high frequencies. [(https://wwws.ameritrade.com/cgi-bin/apps/Main)] The company was started in 1971 by two individuals, Rollin King and Herb Kelleher, with a dream to start a different type of airline. Their motto, which lives on today: "If you get your passengers to their destinations when they want to get there, on time, at the lowest