Not to mention, the startup of some discount airlines such as Southwest has hurt the major airline companies even more. There are numerous strong competitors that offer similar services, with many using the same routes as Southwest. There are approximately 28,000 commercial air flights every day, keeping the airline travel market very saturated. With the high number of flights and number of routes
HARVARD BUSINESS SCHOOL 9-201-028 REV: APRIL 26, 2004 BENJAMIN ESTY Airbus A3XX: Developing the World's Largest Commercial Jet (A) Aviation is a great business to be in, provided you have limitless money at your disposal, limitless confidence in your ability to get everything right the first time, and limitless resolve and iron nerve,' EADS (Airbus) is betting the company on this aircraft. 2 On June 23, 2000, Airbus Industrie's Supervisory Board approved an Authorization to Offer (ATO) the A3XX, a proposed super jumbo jet that would seat from 550 to 990 passengers, have a list price of $216 million, and cost $13 billion to develop. Before the Board would commit to industrial launch, the point at which significant expenditures would begin, it hoped to secure orders for 50 jets from as many as five major airlines. While Airbus had been courting potential customers for many years-in fact, development had been underway since 1990-the ATO gave the sales force permission to begin taking firm orders for the plane with delivery starting in 2006. Airbus management announced the first orders for the A3XX at the bi-annual Air Show in Famborough, England, in July 2000.
The A380 made its first commercial flight in 2007. Capable of flying over 8000 nautical miles without refuelling, the A380 would be ideal for long-haul passengers and freight applications. By 2009, A380 production was several years behind its contracted delivery schedule and some airlines cancelled their orders. The survival and future success of Airbus, including the employment of 52,000 people at 16 sites in France, Germany, UK and Spain, depended critically on A380 meeting its sales targets over the medium and longer term. Airbus and Boeing focus on medium and long-haul jet aircraft with 100+ seats.
1.0 Introduction JetBlue launch its operation in February 2000. It is a domestic airline that provides superior customer services at low fares. This company is able to stand strong even after the tragic events of September 11, 2001. As a new entrant in the airline industry, JetBlue provides wider cabin and wider seats for the passengers and innovation IT programs such as Internet booking system to gain market share. JetBlue started to experience slowed growth from 2005 to 2007 in the competitive environment when major airlines start to expand their business into domestic businesses.
Ryanair is a global airline which provides scheduled passenger airline services between Ireland and the United Kingdom. Starting in 1985 Ryanair followed the example of Southwest Airlines. It was set up with a share capital of just £1 and a new staff base of 25. Since 1985 to now it has grown massively into one of the Europe’s largest low fare carrier. In 1990 the company suffered a £20 million loss and was forced to completely restructure and a new management team was brought in headed by Michael O’Leary who made major changes to the airline.
Ten years later, what set Virgin apart was its reputation for giving customers what they wanted at prices they could afford, pioneering new concepts in service and entertainment and restoring a sense of pleasure and excitement to long-distance travel? The main challenge the airline faced as it celebrated its 10th anniversary was to foster throughout the 1990s. What sort of airline should it be? How could it achieve that goal? How could it remain profitable?
In 1994, the idea for a more personable, reasonably priced airline from Canada to United States was in the mist of development. The airline industry is a rough one in which ninety percent of start-up companies’ fail. One airline, on the other hand, has been profitable since its start. It began with only two planes in 1996 and grew to an unbelievable twenty-one by 2000. Finally, in April 2001 Olive Beddoe, Don Bell, Mark Hill, and Tom Morgan officially unveiled WestJet Airlines.
Industry The global airline industry consist of airline firms offering domestic air transportation and/or cargo through routes based on a regular schedule. Companies whose main business were providing mail using the air transportation of mail is also a part of the industry. In December 2006 the International Air Transport Association (IATA) that passenger revenues would rise by five percent to $475 billion and cargo revenues would rise by six percent to $380 billion by 2007. The IATA also predicted that the industry gain profits of about $2.5 billion since the 9/11 terrorist attack in 2001. There are three types of domestic airline carriers: network, low cost and regional carriers.
Both companies remain in fierce competition to dominate the number one spot in the industry. Airbus has held that position since 2003. However, according to the Wall Street Journal, Boeing is threatening to take its position back and reign as number one for the first time in over a decade (Ostrower, 2013). As a duopoly, this change can prove to have a significant effect on the aircraft marketplace as well as our economy in general. As a duopoly, the entrance into the aircraft market can prove to be extremely difficult, not leaving many options for substitutes.
Introduction This report will look at Ryanair, the organisation’s mission and structure. It is going to look at the internal factors utelizing a SWOT analysis tool, and analyse the external factors using a PEST analysis tool of which influence the airline and its industry . Ryanair is Europe’s first and largest low fares airline. Ryanair has been operating since 1985 starting with just one aircraft of 15 seats to have grown to operate 298 Boeing aircrafts to date. Close to bankruptcy in 1991 Mr Michael O’Leary was appointed chief executive of the company, turning the business venture around a 360 degree of success.