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
Backgrounder Corporate profile WestJet was founded in 1996 by a team of Calgary entrepreneurs, headed by Clive Beddoe, as a western Canadian regional carrier with three aircraft flying to five cities. Today, WestJet is Canada’s leading high-value low-fare airline offering scheduled service to 70 destinations in Canada, the United States, Mexico and the Caribbean, with its fleet of 91 Boeing NextGeneration 737-series aircraft. The WestJet experience WestJet strives to offer guests a friendly, efficient and relaxing experience from the time of booking to the final destination. Guests now have a variety of innovative options to make their travels as smooth as possible. At most airports, WestJet’s check-in choices include web check-in, mobile
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
Texas is a large state, air travel is needed for long distance among those big cities. 89% business No exclusive air services for the interstate travelers and the existing carriers acted poorly which made the consumers dissatisfied with them. ➢ Product analysis: The strategy of Southwest Airlines was to satisfy consumer need with the lowest cost. In order to do that, the Southwest Airlines provided intrastate short-haul air service with an average flying time of 45 minutes in a triangular route within Dallas, San Antonio and Houston. They initially adopted 4 Boeing 737 aircraft in a low cost of $16.2 million.
It does usually allow you to get there in the least amount of time. Almost every major vacation spot has an airport that may be reached via airplane; although sometimes it is not necessarily direct. Most airlines will take you to a hub first and then they will finally send you on to your ultimate destination. Occasionally you may find yourself having several contacts and layovers, but you will eventually get there. For just about any journey over ten hours away I prefer to book flight to that destination.. Travel by train is usually the most costly, unless of course gas expense is just plain uncontrollable.
Southwest Airlines Case Analysis This case is about: Sustaining profitable growth in a highly competitive and regulated industry. Define the problem: Southwest needs to maintain profitable growth while maintaining their low cost / low fare differentiation strategy. Background: • Headquartered at Love Field in Dallas, TX • Southwest was incorporate on June 18, 1971 • Initial fleet of (3) Boeing 737 served only three Texas cities- Houston, Dallas, and San Antonio • Southwest has been profitable for 38 consecutive years • Southwest is the United States most successful low fare, high frequency, point to point carrier • Southwest operates more than 3400 flights per day making it the largest US carrier based on domestic passengers • Southwest has nearly 35,000 employees nationwide • Southwest is traded on the NYSE under the symbol “LUV” • Beginning in the fourth quarter 1976, Southwest paid its first of 138 consecutive quarterly dividends to our Shareholders • 2010 Financial Statistics o Net income $459 million o Total passengers carrier 88 million o Average passenger load factor: 79.3 percent o Total operating revenue: $12.1 billion • The Company's fleet has an average age of approximately 11.4 years. • The average aircraft trip length is 653 miles with an average duration of one hour and 55 minutes. • Southwest aircraft fly an average of 6 flights per day, or almost 12 hours and 30 minutes per • Performance- enhancing Blended Winglets have been added to the 737 fleet to improve performance and fuel Key Issue: Operating cost increases threaten Southwest’s low cost / low fare competitive advantage.
I. Market/Situation Analysis Janmar Coatings, Inc. is a company that sells architectural paint coatings and sundries (brushes, rollers, paint removers). They market to over 50 counties Dallas, Texas. The major service area is in the 11 county Dallas-Fort Worth (DFW) metropolitan area. The sales volume grew to $80 million in 2004 and DFW made up about 60% ($48 million) of those sales, which the non-DFW areas made up the remainder $32 million. Janmar Coatings has two market segments, Dallas Fort Worth and Non-Dallas Fort Worth.
It is consistently ranked as one of the top Fortune 500 brands. Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures, and on-time flights. Many people recognize the reputation Southwest Airlines has in the airline industry and it appeals to many customers and potential fliers. The reputation and recognition of Southwest Airlines is enough to support the ad. The advertisement goes after the common sense of the reader because it is very simplistic.
Allegiant Air realized that Hawaii was an untapped market due to recent airline mergers and bankruptcies. Hawaii is the most prominent U.S. leisure destination that Allegiant can capitalize on along with hotel and car rental packages giving them a bigger piece of the pie. Allegiant Air is a low cost carrier with great customer service; its customers were looking for, a competitive alternative to Allegiants rivals. Introduction Allegiant Air was created in 1997 as WestJet Express in Enterprise, Nevada; Allegiant Air acquired its name and operating certificate in 1998, after a trademark dispute with West Jet Air Center of Rapid City, South Dakota. Its first scheduled service began in October, 1999, connecting Las Vegas and Fresno, California with a Douglas DC-9-21 and DC-9-51 aircraft.
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). By operating low-fares scheduled passenger airline serving short-haul, point-to-point routes largely in Europe from some 45 destination in airports across Europe. Ryanair was the first low-cost airline to operate in Europe (www.ryanair.com). By 2011 Ryan air operated approximately 1,550 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe. Ryan air growth also included the acqusition of some 30% interest shares in Aer Lingus in 2006 (www.ryanair.com).