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
Conversely, any reduction of in the number of passengers from the breakeven point will result in a loss for the firm. This is assuming that every passenger has the same contribution margin. In some cases, an addition of a first class passenger and the removal of 2 coach passengers may actually increase the profit. 2. You are a management analyst for XYZ aircraft manufacturing company.
Presently, gas prices have dropped. However, the airlines continue to pass along the fees to its passengers to increase revenue. Clearly, the fees that began originally in response to fuel prices continue to be part of the revenue generating strategies of airlines. (2) Shortage of Pilots: As baby boomers retire by the thousands, the airline industry is experiencing a shortage of pilots. Before becoming captains, pilots must earn sufficient fly hours.
Finally, in April 2001 Olive Beddoe, Don Bell, Mark Hill, and Tom Morgan officially unveiled WestJet Airlines. The co-founders believed there was a profitable market for a low-fare carrier to and from the United States and Canada. They took the initiative to design a complete business plan and financial representation of what would be a successful U.S. to Canada carrier. The key points were to have a “low-cost, low-fare, short-haul, point-to-point airline to serve markets in Western Canada”. In implementing these key ideas, WestJet has been one of the most profitable airlines in North America.
They carry approximately 32 million passengers a year. They have to focus on a variety of goals and objectives for both short and long term survival in the competitive global market. Their aims, objectives and goals are to maximise profit in the long-term by focusing on improving and maintaining outstanding customer service, becoming the world’s leading premium airline and gaining competitive advantage. They have a goal of transforming British Airways into the world's leading global premium airline which requires meeting the rising expectations of their customers. Their investment in their staff, fleet and facilities ensures they provide the very best in customer service.
The firm will be able to retire the loan of $400,000 on June 30, 2009. Sunspot Skis can generate sufficient internal funds from profit, depreciation, and liquidation of inventory and reduction of collection period for account receivable. Sunspot Skis has longer Average collection period of 49.6 days, comparing to the industry average of 32 days.This shows that Sunspot Skis made a lot of sale on credit. The firm can generate fund by reducing its Account Receivable and collection period in the year 2009. Average collection period = ( 365 * AR ) / Credit Sale Expected Sale Year 2009 = 2,900,000 Account Receivable (Year 2009) = 32* 2,900,000 / 365 = 254,246 Account Receivable (Year 2008) = 388,000 Additional internal fund = 388,000 – 254,246 = 133,754 Sunspot Skis also holds too much inventory ( $826,200) that leads to low Inventory utilization ration 3.5, whereas the industry average is 7.
The first major reason was the nature of the airline industry. It was found that nearly half of leisure travelers and more than a quarter of business travelers did not have a preferences when it came to airlines. There were only two real concern of the passengers: first, the price and second, the frequent service (lots of time-of-day choices). There was also major consolidation in the airline industry in the early nineties due to extremely high fuel costs. Many firms filed for bankruptcy or were acquired by other firms.
Week 7 Checkpoint: Modes of Travel STUDENT HTT/200 December 14, 2013 INSTRUCTOR The three methods of travel I chose to discuss are travel by airplane, travel by train, and travel by automobile. So far, as the journey length on each and every method of travel, travel by airplane is often the quickest, then comes travel by train, and after train comes travel by automobile. While you may discover different factors that could affect the time duration of each and every way of traveling, there are definitely advantages of choosing one over another. Travel by airplane is often the most costly; however the costs for this method of travel does seem to be evening out. It does usually allow you to get there in the least amount of time.
Case Study US-Airline Since the deregulation of the U.S. airline industry in 1978, a substantial number of new carriers emerged; particularly those following a low cost strategy. Given those airlines’ rapid growth and market success the U.S. Department of Transportation (DOT) already identified a so called `low cost airline service revolution’ back in 1997. Almost fifteen years after the drafting of the DOT report, the low cost airline service revolution has not only continued – reflected in an increase of the domestic passenger market share from about 13 percent in 1997 to about 28 percent in 2009 – but also led to a substantial rise in the competitive interaction between network carriers and low cost carriers. Against this background of a substantial and further increasing relevance of low cost carriers, the paper aims at developing a comprehensive perspective of the evolution of the domestic U.S. airline industry in recent years. We find that network carriers (NWCs) und low-cost carrier (LCCs) each entered about 1,200 non-stop routes between 1996 and 2009.
Growth in many parts of the world economy had led to continued demand from already rich and newly wealthy populations in the wider luxury goods market. In this period, Ferretti had become one of the leading yacht building companies in the world. It positioned itself as a global player with a presence in all significant segments, with the medium-term objective of becoming the world’s Number 1 manufacturer of luxury motor yachts. By the end of 2008 though, the effects of the world-wide financial crisis and economic downturn were clearly in evidence. Early in 2009, Ferretti defaulted on its debt repayments forcing a financial restructuring that avoided the immediate risk of going into administration or foundering altogether.