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. Ryanair restructured itself and became a low-fares, no –frills carrier. After the next few years Ryan air significantly slashed its fares further and managed to open up many new routes. Today, Ryan Air has destinations in 26 countries with 950 routes. 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).
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
Maureen Abajah LOG 125 Chapter 7 Case 7-2 U.S. Airways Overview: US Airways is and has been beleaguered with a myriad of issues, from financial issues to consistently below average ratings when it comes to baggage handling and customer service. They have filed bankruptcy several times and merged with other airlines and now have to work on a way to get to a competitive edge in the industry with all issues facing air carriers in general. Case Questions: 1. If you were the CEO of US Airways, what would you do to confront the competition from its low cost competition? Based on the summary table provided in the text book – the first thing that jumps out is how disproportionate the labor volume/number of employees is to the number of aircraft that the company has.
Loss of income for the company as a whole C. Which federal, state or local laws could be broken because of these legal issues/ why? 1. Issues with the Federal FAA for overlooking the safety of airplanes just to make a scheduled flight D. Recommendation to minimize possible litigation 1. To continue the talks with the company and union to come to a conclusion that will not only support the union but also benefit the company. II.
2010 • WestJet is named to the corporate cultures hall of fame after five straight years of being selected as one of Canada’s most admired corporate cultures by Waterstone Human Capital. • • The WestJet RBC MasterCard and the WestJet Frequent Guest Program are launched. In 15 years, WestJet grows from three aircraft, five destinations and 220 employees to 91 aircraft, 71 destinations and more than 8,000 WestJetters. 2004 • WestJet begins transborder service to seven U.S. cities. • • WestJet announces its third stock split.
First, the stock market dropped immensely thus causing the instability of the dollar, weakening its value worldwide. The main reason was one of the major stock holding company’s office was located in the Twin Towers. Through the years after 9/11 the stock market has showed promise and has had a steady increase each year. Secondly, after the attacks the airline industry shut down temporarily causing major transportation problems. Thousands of airline employees lost their jobs.
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.
Ike was a huge economic burden to the U.S. and “estimates suggest Ike may become one of the costliest hurricanes on record” (FEMA 10). Hurricanes are known for causing severe structural damage to houses, but also have an effect on many businesses as well. Many people had to evacuate and be out of work for up to two weeks due to power outage and debris. Also, some businesses were damaged by flooding and wind, which caused the loss of crucial business equipment. Businesses were flooded along the Texas coast and lost all of their vital technology such as computers, telephones, and other office equipment.
In 2013, SEA was ranked the 16th North America’s busiest airport in terms of passenger traffic, with approximately 34.4 million passengers (4.8% growth from the previous year) (FAA, 2014). The number of takeoffs and landings or operations increased to 317,183 (2.5 percent growth from 2012). The airport was ranked the 18th busiest in terms of cargo dimensions, with approximately 322,531 United Sates metric tons of mail and freight passed through its facilities (FAA, 2014). II. Problem For Sea-Tac, there appears to be a high possibility that the airport will need major new facility additions as there are problems related to inadequate capacity (FAA, 1997).
Management believed they would break even on an undiscounted cash flow basis with sales of 250 planes, and could sell as many as 750 over the next 20 years! At the time, Airbus was predicting that there would be demand for more than 1,500 super jumbos over the next 20 years that would generate sales in