Going public when the airline industry are still suffering from 9.11 attack is adventurous, especially it is even harder when the competition of the airline industry is severe, given the fact that 87 new-airline failure over the past 20 years. However, JetBlue has good management team with strong capability, and it has considerable competitive advantage compared to comparable companies, hence there are more opportunities and strengths than threats and weaknesses. JetBlue’s executive management team have rich experience in the airline industry. CEO David Neeleman has extensive experience with airline start-ups and worked in various low-fare flights. COO David Barger and CFO John Owen had worked in airline companies before joining JetBlue.
In implementing these key ideas, WestJet has been one of the most profitable airlines in North America. WestJet receives over 155,000 resumes a year from people in the airline industry and others with no airline industry qualifications at all. Surprisingly, they tend not to hire the ones with experience. WestJet is not your typical bureaucratic organization like most of the other airlines. It is assumed WestJet does not want to hire competitor employees because their work ethic is so off from what WestJet has portrayed in their work force.
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.
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.
These intellectual property laws are recognized for major contributions to society and the economy. Recently intellectual properties have been credited with the majority of companies’ success, therefore catapulting intellectual properties to the forefront of our social and economic interest. Southwest Airline owns the rights to certain intellectual properties that allow it to stand out among its competition. If a company, especially one in such a highly competitive industry, does not have exclusive rights to certain aspects of its operation than it is extremely difficult to compete. The airline industry seems to be one those that it is very difficult to obtain intellectual properties, especially when dealing
Week One Individual Assignment Alexandra Del Rio MKT 571 November 21, 2011 Professor Debbie Thomas Abstract Classic Airline is one of the largest airlines company’s within the industry however they are going through a difficult time because a reduction customers therefore revenues. During these times there will be several factors involved and possible directs to choose between. This document will present marketing concepts found in the Classic Airlines scenario and how they correlate to the readings. These concepts could help Classic Airlines decide the best course of action to take moving forward. Marketing Concepts Within the Classic Airlines scenario presented (Classic Airlines Scenario), one concept mentioned by Kotler
Southwest Airlines is only one of its kinda unique enterprise. It is the fifth largest passenger airline in the United States, currently operating 520 Boeing 737s throughout the United States. The company essentially functions as a point-to-point operation rather than a hub-and-spoke service unlike its competitors. (wwws.ameritrade.com/cgi-bin/apps/Main) Southwest has unique various competitive advantages, which have led it to be a strong performer within the industry. Due to Because of the growth in the low-cost segment of the airline industry, Southwest has tomust continue to innovate and differentiate itself from others to perpetuate its success and popularity.
Most airline customers travel for vacation or holiday, and plane fares are a more important criterion rather than product/service differentiation between the airlines. New entrants may be not be able to provide customers with lower rates. Established airlines are also able to provide better fare discounts for regular passengers (mostly geared towards retaining loyalty from business travellers). The huge capital needed to enter into the airline industry is a high barrier to clear for new entrants. The computerized system for online reservations that are used by travel agents or ticketing offices was developed by the already established airline companies.
Due to rebound of travel budgets, airlines are now competing for premium customers. Business Class customers are now the main source of income to airlines, and its even difficult for passengers to find business-class seats available. As Eric Shaver, a managing director for a consulting and training firm called Kensei Partners, says, " It has been harder to get up-graded to first class these days because so many frequent fliers are crowding the air." So he had seen evidence of this trend this year. He continues, "On flight back from London last year, there were five rows of empty seats.
Business Strategy Since its inception in 1971, Southwest Airlines has continued to encourage its employees to deliver excellent customer service4. Through this strategy, Southwest has earned the reputation as the industry leader in service and support for its customers3 thus adopting a differentiation strategy. For instance, Southwest routinely spends 15 minutes or less on aircraft turnaround, while the competition averages 35 minutes. This creates a unique advantage over the competition. It has also been documented that Southwest’s employees will routinely volunteer and go above and beyond to help customers in need.