It is well known that the airline industry has practiced price discrimination for many years. We all know that on each flight the passengers have paid different prices, and that in some cases we can observe that the highest price is as much as five times the lowest price. Is price discrimination a good or bad thing for the airline passengers and the society? To answer such a question, we must focus on the
Industry Analysis Two large airlines take the initiative to expand their horizons and decide to affiliate and join together. The alliance between US airways and British Airlines was widely publicized and criticized because it was the largest such venture ever attempted in an industry. British Airways, in 1939, British Overseas Airways Corporation was formed. The company became heavily loaded with debt through the 1950s and 1960s as it acquired new aircraft, experienced severe swings in capacity as passenger traffic ebbed and flowed, and began to compete internationally with the large U.S. airliners. For many years the British government continually subsidized the losses.
The Federal Aviation Administration (FAA) and National Transportation Safety Board (NTSB) information, have reported that runway overruns during landing. About 10 incidents/accidents happen every year with different degrees of damage, and many accidents resulted in deaths. Causes of landing overruns may begin as early as the approach briefing or occur once the airplane is on the ground and decelerating. Understanding the root causes of runway overruns is fundamental to mitigating them. Some of the leading factors reasons runway overruns occur are: runway conditions, long landings, speed to fast, incorrect decision to land, aquaplaning, unstable approaches, airplanes touching down outside the touchdown zone, landing on a runway that was not dry, and landing with a tailwind of 5 knots or greater.
Such technological advancement placed a lot of financial burden on the operations of Jet Blue. The airline industry continues to feel the effect from the U.S economic slowdown and rise of crude oil/jet fuel prices, which have risen to record numbers with no predictable end in sight. The slow economic growth has compelled both business and individual travelers to cut back on travel expenditure thereby compelling airlines such as Jet Blue to initiate energy conservation measures, targeting specific markets and exploring the possibility of partnership with other airlines. Linked to the volatility of jet fuel prices is the increased in competition posed by new entrants to the airline industry. New entrants such as Virgin America are bracing the competition by offering lower fares to customers.
in 2008. The term financial crisis emphasized a number of situations in which the financial market suddenly lost a large part of its value. The financial crisis has caused the world economic downturn to the point of melt down and flooded, “The World as We Know It Is Going Down”, (Pitzke, 2011). Many people have suffered with the panic and fear of the financial crisis because it has caused many people to lose their growth of income, wealth and their home. There are a number of central causes for the striking financial crisis, serious challenging effects that caused the whole world to be under pressure and critically affected
Within a week’s span, the effects of the storm caused JetBlue to cancel more than one thousand flights and incur tens of millions of dollars in losses. The company had quickly come to the realization of multiple internal operational issues that compounded the crisis. First off, they had inadequate communication protocols to direct the company’s pilots and flight attendants of where and when to go anywhere. Secondly, they had an overwhelmed reservation system reporting inaccurate flight status and information. Lastly, they lacked employees that were cross-trained and could work outside their primary area of expertise which prevented critical emergency response efforts.
The new fuel price average for the year 2012 is around 129.7 dollars per barrel (jetblue.com). The impact of this year’s fuel bill for the global airline industry is upwards of 32 billion dollars (jetblue.com). The causes for delays and cancellations of flights are reported monthly to The Bureau of transportation Statistics (bts.gov). On time performance has many factors; a few of these factors are air carrier delays, late arriving aircrafts, security delays, extreme weather, and equipment (bts.gov). Air carrier delays are within the airline’s control.
The salaries of pilots and cabin crew were substantially increased – where they benefited from a hefty 30% rise in pay and could respectively earn up to £140 000 and £55 000 per annum. As for ground crew and other support and frontline staff, their terms and conditions were unrivalled across the industry as they were paid 25% more than their counterparts in other airlines alongside a reduction in working hours. An Alarming Financial Situation However, this rosy picture was marred by the recent global financial crisis, which inevitably had adverse effects on all airline operators, with a sharp fall in demand for first and business class travel. Last financial year, the airline reported a £30 million loss. The loss for the last three months of the current year was over £10 million and the figures for the rest of the year look like being just as bad, with losses running at over £50 000 a day.
With the growth of Southwest Airlines it reached to 35,000 of workers and its culture stated to get change. As the company growing management didn’t able to keep track on their workers and their needs. That was a big fail for the company because the company and its workers used to maintain a great relationship between them for a very long time. Workers started to complain about staff shortage and their low wages. These incidents affect directly for the company’s overall performance.
JetBlue Public Relations Campaign Strategy Paper In the wake of unpredictable icy weather, JetBlue Airlines made several decisions to cancel numerous flights which caused a public relations nightmare. Understandable, customers using JetBlue Airlines were upset, frustrated and a bit angry because of the delays that occurred. JetBlue Airlines needed to devise a new public relations campaign to remedy the current situation. In addition, the company’s long range goals were set to explain the serve to overseas travel. List Objectives for the PR Campaign In order to explain its operations into the overseas market, JetBlue Airlines had to overcome a few stumbling blocks that occurred earlier this year.