Essay SILVERJET: “A FALLEN STAR” Market segmentation is one of the most pivotal factors in the air freight market. Only if markets are properly segmented can airlines find the basis for their product, price and promotional policies. It involves dividing up a whole market so that products and services can then be developed for each part of the market. Practically, a lot of companies were successful with reasonable market segmentations, many others failed as they have made improper market segmentation. Airlines Silverjet is a good example for this, we will understand deeply how important of market segmentation with the success or failure of a company.
Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely. (Brickley, Smith, & Zimmerman, 2009, p. 180) In this case I believe that the flights from San Francisco t Washington DC should be discontinued. Even though United Airlines is a large company and profitable if they continue these flights in the long run they will lose money. The other option that they would have would be to increase the fares to cover those costs, but since the airline industry is a competitive market people are more likely to go with a lower cost airline. The first thing the airline must do is look at the firm supply.
The current locations are great to make this move as they reside by the airport and will target the business travellers. GR already utilizes Central and On-line bookings which again will target business travellers as they tend to use this service the most. Business travellers are moving towards staying at up-scale hotels and this move will definitely increase occupancy rates of
Introduction Easy jet strategy and vocabulary Easy jet is a low cost, efficient, and flexible airline that is been driven by scale and cost advantage, high assets utilization, and efficient capital structure. ‘Sir Stelios Hahi-Loannou founded it in 1995’ (Easy jet corporate media file, p.3) and had its first flight from London Luton to Edinburgh and Glasgow. It has headquartered at London Luton airport with about ‘8446’ employee through UK and Europe. They have 3000 short-haul aircraft in operation in Europe, which were centre on ‘pan European primary airports’ that delivers friendly services, efficient and at low cost (p.6) to their customers. 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).
Quality – WestJet’s culture emphasizes a fun and friendly atmosphere for all travellers and empowers employees with bottom-up management. Customer service is of the utmost importance to WestJet and is shown in the enthusiasm of it employees, which is yet another competitive advantage over its competitors. Delivery – WestJet has been able to implement changes in its operations with the use of dual boarding and the continued use of the same type of planes. Because of this, they are able to boast that they have the best on-time arrival performance to its competitors within 15 minutes of the original scheduled time. 3.
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 company has suffered more losses than profits. Jobs were cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay, I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.
In 2008, fliers can expect to see fewer flights and fewer seats as airlines cut costs and reduce growth to counteract rising fuel prices. In essence, peak flying season is becoming a year-round affair. Bailey observes that, “Because full flights cause airlines all sorts of operational problems, travelers should also brace for continuing problems with delays and misplaced bags. That means the chance of being bumped from an oversold flight could be greater, and finding a seat on a later flight will take longer.” Paul S. Hudson, executive director of the Aviation Consumer Action Project said, “It’s not a good thing,” about airlines reducing capacity. “You’re going to degrade the reliability of the system.” Experts say it is
LONG-FORM CASE ANALYSIS FORMAT ____________________________________________________________ British Airways: “Go for It, America!” Promotion (A) Case Name Central Issue How can British Airlines stimulate the US travel market and encourage travel to Europe during a time when terrorism has struck fear into many Americans? Recommended Course of Action Utilize sweepstakes and prizes to raise awareness and increase consumption of European travel by American nonusers vacationing from April through October. Basis for Recommendation Financially, the “Go for It, America” promotion makes sense considering the projected ROI is 10-15 times the campaign investment and will help them close the gap on expected losses (Teopaco & Greyser, 1991). Promotions used in this campaign will stimulate positive word-of-mouth and good will feelings towards BA long after summer 1986. Reasonable Alternatives Increase Commissions to the Trade Cut prices to consumers Increase advertising Cut their losses Implement their “Big Idea” promotion of “Go for It, America!” Significant Factors 1.
They were looking forward to a strong 2007 when timing worked against them this time. The northeaster that hit just days after Jet Blue's seventh anniversary on Valentines Day would prove to be the most formidable challenge faced to date. In my opinion, the key issue or challenge faced by David Neeleman, Dave Barger, and the Jet Blue Board, was the fact that they prided themselves on "bringing humanity back to air travel and making the experience of flying happier and easier for everyone." (1) This vision which would further evolve into the "Jet Blue Experience" and self coined explicit labeled "the best service in the business", (2) increased the zone of tolerance between adequate service and desired service. (3) Explicit and implicit service promises heightened customer expectations.