In 2011, Southwest Airlines celebrated its 40th anniversary of providing low-fare, high quality commercial air service, in addition to its 39th consecutive year of annual profit, making it the only major carrier in the United States to consistently provide annual profits to its shareholders (Southwest Airlines Annual Report, 2011). Currently Southwest Airlines operates some 600 Boeing 737 aircraft, and provides domestic air service to over 72 cities in 39 states, with over 3400 flights daily.
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).
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
Financial Analysis of Southwest Airlines DeVry University ACCT304 February 18, 2012 Financial Analysis of Southwest Airlines Table of Contents Intro 3 Related Party Transaction 3 Assets 3 Liabilities 4 Trend in Assets and Liabilities 4 Cash Flow Statement 5 Investing Activities (largest) 5 Operating Activities (trend) 6 Income Statement 6 Net Income (trend) 7 Comprehensive Income 7 Common Stock 7 Separately Reported Items 8 Conclusion 9 Financial Analysis of Southwest Airlines Intro Southwest Airlines (NYSE: LUV) has been providing exemplary service for 40 years. It was established in 1971, and is now the nation’s largest carrier in terms of originating domestic passengers boarded serving 73 cities in 38 states (Southwest Investor Relations: Company Profile). On May 2, 2011, Southwest and AirTrans Airways merged, and now is in charge of its operations. It is known for its low-fares and no-fee baggage policy, but most importantly, they are known for having the best customer service records. “Southwest is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet.” (Southwest Investor Relations: Company Profile).
Southwest Airlines corporation strategy case study Southwest Airlines (SWA) is a successful domestic carrier operating out of Dallas, Texas. The CEO Herb Kelleher filed for approval of their plans to fly as a regional carrier, flying between three cities (Dallas, Houston, San Antonio) in Texas. In February 1968, their plans were approved and the airline has since expanded into a US national carrier, at year-end 2002 flying between 58 cities in 30 states. (Written by Steven Sullivan under the supervision of Paul W. 2002). SWA has an enviable record of constantly ranking among the top five major carriers in the Department of Transportation (DOT) Air Travel Consumer Report, with recognition for on-time performance, best baggage-handling and fewest customer complaints.
Virgin’s highest business profile has been boosted by its big stake in the airlines. Virgin Atlantic Airline is an international undertaking with over 30 destinations. However, the company has businesses spread out in various industries, from financial services to railways, from soft drinks to cosmetics. A brief History of Virgin Atlantic Airlines Virgin was founded in early 1970 as a mail order record business but later went on to become a music publishing and retailing private company. Back in 1980’s Sir Richard
In the “Classic Airlines” simulation, the marketing team has to take on the problem of marketing the company in order to increase the company’s return on investment. In this assignment the student discuss the situation at Classic Airlines and relates relevant marketing concepts. Background Classic Airlines, known as the fifth largest airline, has a fleet of more than 375 jets in 240 cities with over 2,300 flights daily. They have over 31,000 employees. In 2004, the organization earned $10 million on $8.7 billion in sales.
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.
Classic Airlines Marketing Problems & Solutions Mike DeVries MKT/571 March 19, 2012 Dr. Scott Goldberg Classic Airlines Marketing Problems & Solutions As the fifth largest airline in the world, Classic Airlines is described in the scenario as an airline “currently consisting of more than 375 jets serving 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales.” However this level of profitability does not come without its problems and their needs for solutions. Through this analysis of these problems and their potential solutions, the purpose of holistic marketing will become self-evident. By understanding these more holistic marketing concepts, it allows the ability to structure a more efficient marketing system by naturally creating a market that can provide for the solutions to the problems of a constantly changing market that prevents its ability to provide for the needs of all members of society. The Problems for Classic Airlines Many of these challenges are both directly and indirectly related to the technique of marketing that Classic Airlines uses to create its distinction in the market place.
For the year 2008, revenues coming from North America accounted for eight billion and ninety million US dollars, which represent 55.2% of the total revenues of the company. Sales in Europe accounted for five billion four hundred and forty three million US dollars, which represent 37.2% of total global sales. Cumulative sales coming from other regions are totaling one billion one hundred and thirteen million US dollars, or 7.6 % of total sales. Carnival carries around eight million passengers annually, which makes it the biggest cruise company in the world. Each year approximately 10 million people in North America make cruise vacations (around 9.5 million in the U.S. and 700,000 in Canada).