Airline Industry: Key Success Factors of Singapore Airlines (SIA

Airline Industry
Part I. The absorbtion of a company is often a difficult task. Critical issues to consider, include
organizational culture, technology, socio–culture, brand equity, and profitability of the firm.
Organizational culture is the most important issue to consider when acquiring another company.
While some cultures differ from others, that doesn't necessarily make them weak cultures. Key
questions to ask are; how well will the companies cultures mix with each other? If changes to either
culture occur, what implications does this have on productivity and efficiency? Technology is and
has been a key part of business and will continue to be. Technology increases productivity,
efficiency, and in many times lowers the cost of ... Show more content on Helpwriting.net ...
Threat of close substitutes–high: There are several substitutes to air travel, these being things like a
car or a train. When going overseas there really isn't a good substitute unless you are going on a
cruise which in my opinion is an entirely different plan for travel. Sometimes if a group of people
want to travel to the same place they will carpool for a cheaper rate, but this is getting less popular
than it once was. In summary the shorter the distance, the more likely an airline is going to lose to
close substitutes like a car or train. Bargaining power of suppliers–high: This is due to the fact that
the suppliers are in an oligopoly. There isn't much competition in the supplier market so those
companies can keep their margins rather high. If a company decides to purchase a different brand of
airliner then they would need to face training and maintenance costs associated with buying that
new brand. Now there are things like beer and peanuts, uniforms and the like. The airline industry
has potentially high bargaining power against these suppliers but those items don't affect the profit
margin like equipment does. Bargaining power of buyers–low/moderate: The price of an airline
ticket is set and doesn't really change except over time through competition. Buyers get to use
technology like the internet to compare prices of different competitors which lowers prices; however
that only affects prices over time. Since there
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Qantas Airline Analysis
QANTAS CASE ANALYSIS
* Introduction
Qantas or as it is nicknamed "The Flying Kangaroo" is the largest airline service that runs
continuously and the second oldest in the world. It was established in 1920 as Queensland and
Northern Territory Aerial Services Limited and first flew internationally in 1935 (Hanson, 2011).
The growth of Qantas has been substantial with the most significant progression being the
Australian government selling its domestic carrier Australian Airlines to Qantas in 1992 and the
announcement of privatisation soon after (Hanson,2011). Throughout this journey of growth there
has been extensive changes including flight costs, pay disputes, strikes and shutdowns, industrial
action by pilots and technical staff. ... Show more content on Helpwriting.net ...
The modern trend in aircraft innovation is to be more fuel efficient (Hanson, 2011). This is since the
high competition in the international airline industry but also because airlines are becoming more
environmental and cost considerate (Hanson, 2011). Qantas was also an instigator in Australia to
have internet check in and more recently its check in service at Domestic Airports is mainly
computerized.
Global forces
Globalisation has occurred more frequently and this has followed onto the globalisation of the
aviation markets. There has been substantial increase in global competition with the introduction of
low cost airlines such as Air Asia, Ryan Air and Easy Jet. Also there has been an increase in the
global outsourcing in most forms of the airline industry (Hanson, 2011).
Socio–cultural
Air travel has been transformed from the upper class to the middle class and so more and more
people can afford to travel (Hanson, 2011). These days the general pattern is that people are more
concerned about work/life balance and general quality of life. More people are keen to spend time
with their families and go on family holidays.
* Industry environment
Risk of threat of new entrants
Over the past quarter century, there have been a substantial amount of new entrants into the airline
industry. There was a substantial quantities of capital required to set up an airline (Hanson, 2011).
These costs have

Singapore Airlines
Table of Contents
Introduction 1
Over the years 1
Key Success Factors 2
Sustainability Criteria: The Dual Strategy 5
Conclusion 8
Introduction
The airline industry forms a major component of the travel and tourism industry. With increasing
affluence, people around the world are spending a large percentage of their income on travel and
tourism thus enhancing the sector's prospects. Singapore Airlines (SIA) is one of the world's leading
players of the international airline industry. Singapore Airlines was the pioneer of in–flight services
such as free drinks and complimentary headsets. And today, the name of Singapore Airlines has
become synonymous with impeccable service around the globe.
The care and attention that ... Show more content on Helpwriting.net ...
Economic development of Singapore in particular and Southeast Asian region in general also paved
the way for SIA's success. The company also received indirect assistance from the Singapore
government especially in areas of infrastructure and fair access to other markets.
The contribution of these factors and others has made SIA one of the best managed companies in
Asia and in the global arena as well. We have briefly discussed some major factors below:
1. Implementation of dual strategy: SIA has successfully implemented both value differentiation
strategy as well as cost leadership strategy. This has proved to be a key to its success. (This has been
discussed in a more elaborative manner in the later section.)
2. Clarity and Commitment: SIA 's focus on service is completely clear. The mission statement and
core values state quality service as fundamental objective and aspiration of the airline. This has
increased the operational efficiency of SIA and thus helped it become one of the best managed
companies.
3. Related Diversification: SIA utilizes related diversification to reap cost synergies and at the same

time control quality and enable transfer of learning. Related operations (such as catering, aircraft
maintenance, and airport management)

Singapore Airlines
Marketing Plan for Case 10:
Singapore Airlines: Customer Service Innovation (A)
I. Executive Summary
This marketing plan has been created for the purpose of promoting Singapore Airlines (SIA)
services in order to increase market, profits and brand image to the entire global community. SIA
has been providing airline service for the past few decades to currently 64 cities in 35 countries on 5
different continents. Currently SIA is ranked number one in the world in international airline travel
service. In the past decade revenues have doubled for SIA. In the early 70s, Singapore was
considered a developing country and it used the breaks and benefits of low costs for equipment and
employment to make profits for the company to ... Show more content on Helpwriting.net ...
The current marketing strategies of SIA being compared with current products, pricing, distribution
and promotion are producing a profit for the shareholders and executive board of SIA. Comparing
last years financial data to the most recent financial data, SIA has experienced an increase in
revenue. d. How does our current performance compare to other firms in the industry? Is the
performance of the industry as a whole improving or declining? Why? The performance of the
airline industry has been in a decline ever since the terrorist attacks in the United States September
11th, 2001. During the time since that fateful day the industry as a whole has been suffering,
however, a few airlines domestic and international have been able to maintain and gain its market
share; SIA is one of those airlines. Since 1997, the revenue for SIA has doubled. e. If our
performance is improving, what actions can we take to ensure that our performance continues to
improve? Is the improvement in performance due to a better–than–anticipated environment or
superior planning and implementation? To continue this increase in growth in the market share SIA
must continue to provide excellent quality of service to its customers and continue to provide high
quality of travel to its customers.
Review of current and anticipated organizational resources a. What is the state of our current
organizational resources (e.g.,

Airline Industry : Southwest Airlines
Southwest Airlines, founded in 1967, entered the airline industry at a time when the interstate travel
was heavily regulated by the Civil Aeronautics Board (CAB).10 Some of those regulations are
airlines were not allowed to discount fares even when their planes were at half capacity, airlines
were not able to add new routes or remove old routes, and new carriers were not allowed to enter the
interstate airline travel.10
Due to these regulations on the interstate market and seeing the success of intrastate carriers such as
Pan Southwest Airlines (PSA) and Air Cal, Southwest entered the intrastate market where CAB
regulations did not apply.[10] [1] Southwest knew from early on that it had to provide considerably
lower fares to stave off the competition from the interstate carriers and was planning "to charge fares
that were at least 60% lower than the average coach fare".1 From the words of Colleen Barrett, "We
knew that we were going to have to have substantially lower fares on day one of our operation than
were currently being charged because that was our only chance of winning a niche in the business".1
Southwest not only incorporated the cost leadership strategy to keep the fares low but they also
made sure, from their marketing and unique services provided, to differentiate itself from the rest of
the competitors.1 Because of their strategy, Southwest generated consistent profits year after year,
while many of it's competitors were filing bankruptcy.1 Southwest Airlines

Commercial Airlines And The Commercial Airline Industry
Commercial airlines has been providing a vital service to our society for many years now. For
example, a trip which would take three days by car would take only three hour by plane. Society
very much appreciate the convenient commercial airline offer. The United States Department of
Transportation's Bureau of Transportation Statistics (BTS) reported that 815.3 million scheduled
customers traveled on United States airlines serving the United States in 2012 (Smallen, 2013).
More people in our society are flying today than ever before. That's great right? More customers
paying airfare, more profit for the airlines right? If that's the case, why are the major airlines making
some of the decisions they're making, and in most cases it's to ... Show more content on
Helpwriting.net ...
The attempt by the inspectors to ground the aircrafts were prevented by their supervisor at the
Federal Aviation Administration because the supervisor was friends with Southwest airlines. After
utilizing the Whistler Blowing, the investigation found the Federal Aviation Admiration supervisors
allowed Southwest Airlines from 2006 to 2007 to 46 aircrafts which were overdue for inspections,
even after the issues were brought to their attention by inspectors (Griffin & Bronstien, 2008).
Both Southwest Airlines and the Federal Aviation Administration has an ethical responsibility to
society. Thousands of citizens whom choose to fly Southwest Airlines give the airline and the
Federal Aviation Administration the benefit of doubt that the safety of their customers is their
number one concern. In this case both organization made poor ethical decisions. Their legal
responsibility was also neglected. Not following the policies and regulation of the Federal Aviation
Administration is against the law. Southwest Airline and the Federal Aviation Administration
supervisors knew what was right and wrong and knowing failed to uphold their legal responsibility
to society. Southwest Airlines had an economic responsibility that they also failed to uphold for their
stakeholders. I'm sure Southwest thought by not grounding the aircraft for the allotted time to
perform the required inspection that they could

Delta Airlines : The Largest Operating Airline
Delta airlines is the oldest operating airline in the United States, one of the five remaining legacy
carriers, and a founding member of the SkyTeam airline alliance. It was founded as a crop dusting
service company in 1924 in Macon, Georgia. Since its early years Delta airlines has gone through all
the regulation changes from early years of commercial aviation to recent years, and has been highly
influenced by the government laws.
The first major piece of legislation created by Congress related to aviation industry was The Air
Mail Act of 1925, also known as Kelly Act. This act gave an opportunity for airlines to profit from
operating mail services, and Delta got involved in the business. In 1927, Delta extended dusting
services to Peru, ... Show more content on Helpwriting.net ...
Braniff, Capital, Delta, Northeast, and Panagra employed pilots. United Air Lines used both pilots
and mechanics.
In 1968, due to continued wave of U.S. air carrier hijackings, including aboard Delta airlines
aircraft, FAA announced that specially trained FAA safety inspectors or "sky marshals" had begun
boarding Florida–bound airline flights. However, the effort was unrewarding, hijackings continued
to occur and a total of twelve airliners and six general aviation aircraft were diverted to Cuba during
the same year ("FAA chronology", 2017).
On October 24 1978 President Carter signed the airline deregulation act for years the airline industry
was rigidly regulated by the government. By 1978 the general public and many government officials
had decided that this system was no longer effective and it was time for the airlines to be free of
government regulation. This one piece of legislation would turn the airline industry in a whole new
direction by radically changing the business for both the consumer and those working within it.
Before deregulation, the Civil Aeronautics Board regulated both the airlines routes and the ticket
prices. With deregulation, any domestic airline that was supposed to fit, willing, and able by the
Department of Transportation. The primary role of the DOT changed from approving whether an
airline was

Continental Airlines
Case Study > Data Warehousing
Continental Airlines
I. Executive Summary
Table of Contents
I II III IV V Executive Summary The Decision to Invest Implementation New Business Strategies
ROI 2 4 6 9 19 20
Technical Appendix A
Continental's comeback from "Worst to First" is an airline industry legend. Now the company is
engaged in a new initiative to move from "First to Favorite." To support this ambitious initiative,
Continental tapped into its Enterprise Data Warehouse and expanded it to enable a real–time
business intelligence capability. In the first five years of operations, the EDW achieved an ROI of
more than 1000% on a $25 million investment. To do this, Continental has changed the way it does
business, transforming its ... Show more content on Helpwriting.net ...
Its last profitable year had been 1984. The company had filed twice for Chapter 11 bankruptcy
protection and was headed for a third bankruptcy. Ten CEOs had come and gone in ten years. If
Continental was going to compete and stay in business, change was needed. The story of the airline's
transformation "From Worst to First," under the leadership of CEO Gordon Bethune is a lesson for
every struggling business. Today Continental has won accolades and awards for all aspects of its
business performance. Headquartered in Houston, Texas, Continental is the fifth largest airline in the
U.S. and sixth largest in the world, employing about 49,000 people. It carries more than 50 million
passengers a year to five continents (North and South America, Europe, Asia and Australia), with
over 3,045 daily departures to more than 271 destinations, serving more destinations than any other
airline in the world.
EB–4349
>
1007
>

OF 25
Continental Enterprise Case Study
II. The Decision to Invest
From 1994 through the end of 1997, Bethune's "Worst to First" business strategy relied little on
technology. Bethune began by reshaping the company with his "Go Forward Plan," which still
guides the business today. The Go Forward Plan has four interrelated parts, dealing with the airline's
product, ﬁnances, market and people: > Fly to Win. Understand what products customers want and
what they are willing to pay for. > Fund

Southwest Airlines And United Airlines
Mission Statement Analysis
Southwest Airlines and United Airlines have been direct competitors in the airline business for a
number of years. As time has passed, we have seen Southwest take a more Servant Leadership
minded approach, while United decided upon a more traditional style of Leadership. From their
mission statements, along with reviews from flyers and profitability, to the overall culture of the
companies, we look to see how these two airlines compete, and which one comes out on top.
Mission Statements
The mission statement is often publically stated and used by almost every organization today. It
helps provide basic guidelines, essentially the core values of a company, and what they aim for. A
mission statement gives customers ... Show more content on Helpwriting.net ...
Not only was the mission statement or core values difficult to find, but the page had a vague title
called "It's how we fly". The page seemed to assume that the reader should just know what United
was about and what they believed. The core values seem placed there simply because it is required,
not because they are values followed by the actual organization. Both Airlines include words about
customer service and treating them well, but Southwest put it simply and concisely. United seemed
more focused on impressing readers with their core values. I believe that the Southwest mission
statement impacts the culture of the organization by being a definition of what it should look like.
Comparatively, I believe that United's core values impact the culture very little if not at all.
Principles
Southwest Airlines is dedicated to incorporating all servant leadership principles throughout their
organization. Accordingly, their mission statement is clear and concise it evidently exemplifies all
principles and acknowledges a servant–led organization. Their mission statement embraces their
commitment to serve the highest quality of customer service through a sense of warmth,
friendliness, individual pride, and company spirit (Southwest, 2014). Therefore, through
Southwest's' mission statement it makes it explicitly apparent that they seek to listen and commit to
the growth of their people. Southwest empathizes with their employees because they are dedicated
to providing

Delta Airlines Evaluation
For my news report I turned to the website Prnewsonline.com and I supplemented my research with
information from the BET website. These websites were incredibly helpful in my research gathering
process. I feel that these sources were reliable and for the most part unbiased news sources in which
I could gather accurate and relevant information to my issue.
In early October, Delta Airlines was accused with racial profiling after a flight attendant refused to
believe that a black woman, Tamika Cross, was a doctor. During a flight from Detroit, a man went
unconscious and his wife cried out for help. A representative for the airline went on the speaker and
asked if anyone aboard was a doctor, Dr. Tamika Cross immediately responded. The flight attendant
showed clear doubt that Tamika Cross was a doctor and reportedly said to her that they were
"looking for actual physicians or nurses or some type of medical personnel." Once again the cockpit
asked if there were any medical personnel on board, and once again Dr. Cross responded. Once
again Dr. Cross was greeted with disbelief and was even asked to prove her ... Show more content
on Helpwriting.net ...
Through utilization of justification, Delta airlines minimizes their crisis by stating that they are still
taking action in order to investigate what happened. Delta never fully acknowledges that there is an
issue and instead tries to make it right through the reduction of offensiveness. Through utilizing this
strategy they reduce the severity of Dr. Cross's allegations by discussion how their flight attendants
are trained and how ultimately it comes down to a judgment call. The biggest issue with Delta's
statement is that it lacks an apology and never acknowledges that there was an issue of racial
profiling. Although Delta did issue a statement, it was not effective in making their issues go away,
and was not a sincere

Operations of Airlines
"The world commercial airline industry is one of the most diverse, dynamic and perplexing in the
world " (Globale Airline Industry Program). The airports are exceptionally complex facilities and
highly renowned for the variety of services and resources it provides to both the airlines and its
users. Airlines and airports are inextricably intertwined together and none of them can survive
without the other. The aviation industry is growing at an exponential rate. The demands for an
effective and efficient ground handling system became the fundamental standards in successful
aircraft operation and increase in airline image. The directives adopted by the 15 member states are
divided into three general models, US, EU and third party models. In ... Show more content on
Helpwriting.net ...
Introduction of decentralised airports reduced walking distance from one terminal to another. Even
to a point where passengers who opted to fly in one individual carrier didn't have to walk miles and
miles to get to their carriers terminal. For example Dallas–fort Worth international airport consists of
five terminals each offer their own parking areas and a short distance walk from the car park to the
terminal. On the marketing side the aviation industry became more and more competitive. Airlines
fare prices have risen and declined. Carriers adopted strategic approaches to out compete with other
airlines by introducing low cost carriers as well as maintaining their full service carriers. Not only
airlines opted new strategies in making profit airports as well started to increase their revenues by
charging aircraft parking fees, landing fees, air traffic charges, handling services and fuel taxes to
the airlines to make up payments for infrastructure costs and other internal services costs. Safety
record and providing top quality services to passenger and airlines establishes the basis of well
operated airport system.
Airports are regarded one of the most prominent facilities in the world, thus any terrorist attacks
would deal unspeakable damages to the country and lose of citizens lives. Governments rely heavily
on airport generating tourist revenues, if any vicious attacks

Southwest Airlines And The Airline Industry
Southwest Airlines, a cost leader in the airline industry, was faced with an important decision on
whether or not to enter LaGuardia Airport's expensive, heavily regulated and congested market.
How does a leader airline in discount airfare, continue to expand into high traffic markets without
compromising its core strategies and disrupting its existing network?
Founded in 1967, Southwest entered the airline industry at a time when interstate travel was heavily
regulated by the Civil Aeronautics Board (CAB).10 Some of those regulations imposed by CAB
include: airlines were not allowed to discount fares even when their planes were at half capacity,
airlines were not able to add new routes or remove old routes, and new carriers were not allowed to
enter the interstate airline travel.10
Due to these regulations on the interstate market and seeing the success of intrastate carriers, such as
Pan Southwest Airlines (PSA) and Air Cal, Southwest entered the intrastate market where CAB
regulations did not apply.[10] [1] Southwest knew from early on that it had to provide considerably
lower fares to stave off the competition from other airlines and was planning "to charge fares that
were at least 60% lower than the average coach fare".1 From the words of Colleen Barrett, "We
knew that we were going to have to have substantially lower fares on day one of our operation than
were currently being charged because that was our only chance of winning a niche in the business".1
Southwest not

The Value Of The Airline
3.2 Hedging Add Value The airline must benefit from hedging due to the mitigation of finance risk,
reduction agency problems of information asymmetry in this section we show the important relation
between Aircraft Company and hedging of fuel price and operating cost due add value. The hedging
is associated with a lower cost of crude oil, operating cost comprehensive set of controls and finance
specifications. Hedging initiating firms of airline experience a drop in the cost while suspension
firms sustain a jump. We perform an extensive set of robustness tests to address the possible issue of
endogeneity, competitive. We further show that hedging leads to a drop in the cost of debt by
reducing higher oil price risk and the level of ... Show more content on Helpwriting.net ...
Hedging also reduces information asymmetries between the firm and its stakeholders, facilitating
contracting. For example, demonstrate that managing risk can reduce noise, thus helping outside
investors to better identify skilled managers. All these arguments imply that risk management can
add airline firm value (Karl and Henri, 2011).
3.2.2 Airline Industry and Economic Aircraft companies are derived strongly from the airline
production function, like the situation at ticket prices, operators cost and some elements variables
specification such as satisfy of passengers and situation in the market competitive. The large
endogeneity and careless variable case could have an effect on our estimates of oil price coefficients
.The chain may have to be side to costs higher at the time of high oil prices. instead that, it might be
the case that when firm's product market positions are stronger they are better able to enact
flexibilities to deal with high oil prices, leading to reduced costs for example in fixed the category of
the data base, the period business a swing fuel prices might face to be wide at the same time as
airlines' capacity is tired with investors (Paul and Chi Zhang, 2014). Hedged fuel cost is boosted in
fuel price and concave. Hedged fuel cost is rising in jet fuel price, but less credible concave,

According to IBISWorld Global, worldwide travel and passenger numbers are expected to grow due
to changes in the demographic and economic environments, such as declining unemployment rates
and rising income levels. Therefore, airline companies such as Southwest Airlines differentiate their
brands from competitors by proactively creating value for customers. Since 2001, the airline
industry has experienced greater costs due to the failing economy, volatile prices for fuel, and
increased global competition. In order to combat these environmental factors, Southwest Airlines
keeps airfare costs lower than those of competitors, focuses on fuel–efficient technology, and
expands its services into other countries.
In a time period with a weak ... Show more content on Helpwriting.net ...
In order to combat volatile oil prices, Southwest focuses on fuel–efficient technology. According to
EbscoHost, the prices of crude oil and refined products have fluctuated widely due to many factors
that are beyond the control of companies like Southwest Airlines. In 2013 and 2012, jet fuel and oil
represented about 35% and 37% of Southwest Airlines ' operating expenses, which comprised the
largest expense incurred by the company in both years. Unfortunately, any inability to obtain jet fuel
at competitive prices would severely harm Southwest Airlines ' financially. Although the company
cannot control the supplier costs, it utilizes strategic positioning in its marketing strategy through
technological upgrades and fleet modernization. Southwest Airlines focuses on fuel–efficient
technology by replacing its older Boeing 737 planes with larger and more fuel–efficient planes that
can travel greater distances such as the Boeing 737–800. Although technological upgrades in the
industry have slowed in the airline industry, Southwest Airlines continues to focus on fuel–efficient
technology and cost–reduction machinery. Since the search for more fuel–efficient technology helps
the company market their brand as promoting environmental sustainability, customers are more
likely to identify with the firm, ultimately giving Southwest Airlines a competitive advantage.
Southwest Airlines takes advantage of the increasing trend of global competition by expanding its

Iberia Airlines
7. Introduce the firm:
a. who is the firm?
Iberia Airlines
i. whom does it serve?
In 1944, the civil Aviation Conference was held in Chacigo, where fifty two states siged an
International Convention that established the basic principles for the functioning of the air market:
each country could negotiate bilateral agreements with other countries in order to regulate the
market conditions that would govern air traffic. Before the 1980's, the planning system used was
basically " point to point", that is to say, direct flights from one city of origin to another of
destination. Instead of planning simple routes, they planned routes from and to the hub airports that
came from or were going to other cities. In 1959,
ii. What value ... Show more content on Helpwriting.net ...
Economic factors:
– Interest rate would impact the cost of capital, the rate of interest being directly proportionate to the
to the cost of capital
– Economic trends act as an indicator of the sustenance and profitability of your business in the
chosen region and help you in deciding your marketing strategy.
– Rate of inflation determines the rate of remuneration of employees and directly affects the price of
the restaurant's products. Again, the proportion between the inflation rate and wages/prices is direct
Social Factors:
–Certain cultures, like 1st world countries would not choose to go to the Iberia airline just to save
money, they would choose airlines which gives better customer satisfaction.
Technological Factor:
– The technology of the Iberia Airlines is very efficient because when the internet was used, the
Iberia Airlines quickly took the idea of selling tickets in the internet.
Porters 5 forces
It is known for a fact the Iberia Airlines is not the first airlines, but it is said by porter that when
there's a new one, there will always be an old one. Its idea of selling tickets cheaper compared to
other companies is a stepping stone. The advantage of this airline is that it has cheaper flights
compared to other airlines but same service. Its technology is sufficient and ready for competition.
In its early age, it is

Airline Industry : Delta Airlines
Though Delta Airlines which is my choice of Airline does not operate solely as cargo carrier
but as both passengers and Cargo carrier. Usually people ask where the difference between
passengers and cargo carrier lies and the difference is simply the schedule and types of aircrafts
used in each operation. For cargo only freighters there is no need for windows, seats and other
comforts usually expected by customers. But operating a combined passenger/cargo aircraft,
most basic requirements must be met when it comes to customer's comfort and that is where
Delta Airlines falls in this category.
Introduction:
Delta Air Lines' long history of service actually began in agriculture, when the company was
founded in 1924 as the world's first aerial crop dusting organization called Huff Daland Dusters.
In fact, if the boll weevil had not marched out of Mexico prior to the turn of this century to
devastate the cotton fields of the South, there might not have been a Delta Air Lines. When the
weevil's relentless destruction reached the Mississippi Valley, such a serious economic threat
faced the South that the Bureau of Entomology operated a laboratory in Tallulah, Louisiana, as
the base for an intensified cotton insect investigation. Directing the activities at the laboratory
was Dr. B. R. Extension Department of Coad, assisted by a young district agent with the
Louisiana State University, C. E. Woolman. Woolman, an agricultural engineering graduate of

The Airline industry has been around for decades, but in the long run it is still a pretty new type of
industry. Therefore, there are still growing pains that need to be worked out. There are many small
companies, but the major Southwest competitors are Delta/Northwest, Continental/United, JetBlue,
and Allegiant.
Southwest continues to have to fight for consumers against these airlines. There are a few strategies
being implemented by competitors that Southwest Airlines needs to be concerned about. One major
recent strategy is that large companies are merging to create even large conglomerates. These
mergers have given those companies some extra advantage when it comes to certain regional
markets. They don't have a monopoly but their hold on consumers in an area rises tremendously.
Also, it allows them to control the fare prices in regions where they are the majority. Southwest
Airlines could lose consumers to some of these mega companies because they may offer more flight
times on certain routes. Consumers may be willing to pay more if times work better for them.
However, these mergers could be detrimental because consumers like to have options and the prices
they offer may be too high.
The strategies being offered by smaller companies are much different than the merger companies.
The small companies are implementing low fare price strategies. These companies are directly
competing with Southwest Airlines' low price strategy. Southwest could lose consumers to other
similar

Southwest Airlines : The Most Important Airline
Southwest Airlines was founded in Texas and opened its doors to customers on June 18, 1971, with
only four Boeing 737 providing services to only 3 cities in Texas (Houston, San Antonio and Dallas)
Mr. King and Mr. Kelleher started Southwest Airlines with one philosophy in mind: "If you get your
passengers to their destinations when they want to get there, on time, at the lowest possible fares,
and make darn sure they have a good time doing it, people will fly your airline." (Khaledi)
Southwest Airlines is now the most important airline, actually, is the 4th leading company in the
industry in the United States and their symbol on NYSE is LUV.
Currently, Southwest Airlines is America 's largest airline with the lowest rates, and they serve ...
Show more content on Helpwriting.net ...
Due to high demand and success of this strategy, the airline has made the strategic decision to invest
in bigger planes that will have a higher capacity of passengers. This idea was introduced in 2012 by
CEO Gary Kelly and called this strategy a (2013) "game changer" with the intentions to ultimately
increase profits. In July 2014, Southwest Airlines decided to jump into the international airline travel
into Mexico and the Caribbean using the acquisition that took place with AirTran in 2010. This
expansion, however, is still in its early stages and has yet to show full financial results.
Although the company has been able to gain a competitive advantage by distinguishing themselves
from the competition, it still remains a difficult industry to compete in. Because the competition is
very high it is simple for customers to look elsewhere for a better deal. The product is air travel and
there are many competitors offering the same destinations. Airfares and rates vary and the
competitors are always pushing to lower rates in order to fill empty seats and ensure profits.
There is no guarantee of customer loyalty with such high competition. Other competitive threats are
the fixed rates that airlines have to endure. The fixed costs of purchasing airplanes and keeping up
with their maintenance are very expensive. Due to investment in equipment and fixed assets is so
high, the industry has high exit barriers. Southwest

The Airlines And The Airline Industry
The airline industry has been around for years, it has suffered its ups and downs due to attacks such
as the one that occurred in September 11, and even most recent as the Paris attack that occurred this
past year. Major Airlines have suffered a decline in their profitability which has forced many airlines
to file for bankruptcy. However, when bad times hit an industry some companies are forced to quit,
while others are forced to change their strategy and continue moving forward.
In the airline industry, we have two major industries classified as the traditional airlines and the
budget airlines. Traditional airlines have vertically integrated services and purchase their aircrafts
directly from their manufacturer. On the other hand, budget airlines lease their aircrafts in order to
source their fleet and provide cheaper flights. These cheap flights are supported by the subsidiaries
in the secondary airports they flight in and out of.
Secondary airports are a great way for budget airlines to provide a faster turnaround due to the fewer
flights that go in and out of these secondary airports. With budget Airlines there is also no in–flight
service, the low cost the customer pays includes nothing but the flight itself. There is limited
aircrew, which is responsible for cleaning the aircrafts and tickets are strictly sold online. Their
advertising money is spent mostly in advertising heavily on popular social media sites.
Whether a customer decides to flight on a budget airline

The Airline Industry
According to ATAG, "in 2013, over three billion passengers were carried by the world's airlines"
(Facts & Figures, 2014). This fact demonstrates how the airline industry is a ubiquitous part of our
lives. Even if a person has never used an airline for personal transportation, they are still likely to
have consumed and/or used an assortment of goods transported by the industry. Still, even with its
major impact on the world around it, inside the airline industry, firms must learn to encounter a wide
array of external factors that influence their everyday operations and strategies. These factors can
come from both the general and local environments that surround the industry. Each of these factors
in their own way have an impact on the competitive environment found within the industry.
GENERAL ENVIRONMENT
The general environment consists of six different trends that can have an effect on the strategies a
firm must take to survive in its industry. These six trends are: technological, demographic, cultural,
economic, legal and political, and international (Barney & Hesterly, 2016). In the airline industry,
this means things such as fuel price, terroristic threats, and the environmental impact, all of which
affect a firm's strategy choice.
Demographic
As depicted in Chart A in the appendix, disposable income has experienced an overall increase over
the past 10 years (United States Disposable Personal Income, 2015). This means that individuals
have more income to spend

Delta Airlines
A Marketing Practice for Delta Airways
Timothy Duffy
BUS 330 Principles of Marketing
Benjanette Matthews
JUNE 17, 2012
Delta Airways (DELTA) is the US's largest airlines; it operates both internationally and domestically
along with chartering air services for the carriage of passengers, cargo and mail. The airline flies to
over 900 destinations globally and is considered to be a leader within the industry with almost 770
aircrafts in service. Starting back in 1924 as a crop dusting company down in Louisiana, merging
with several airlines and rising through bankruptcy to become one of the strongest airlines in the
business today.
With Delta Airlines being one of the most successful airlines in the industry it currently has its ...
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Ultimately for Delta, the risks of adopting a simpler, lower–fare structure have decreased, while the
risks of not taking action might have increased for the company.
The main aim of a promotion is to persuade, inform and make people more aware of a company's
brand, as well as improving the overall sales figures. Advertising is the most widely used form of
promotion, and can be through the media of TV, radio, journals, cinema or outdoors (billboards,
posters). The specific sections of society being targeted will affect the types of media chosen, as will
the cost. If you were a toy manufacturer, you might want an advertising spot during children 's TV.
If you ran a local restaurant, you might choose a local paper or radio. A small or local business
would not usually advertise on TV, because it is very expensive. Sales promotion is designed to
encourage new and repeat sales. Loyalty cards, free gifts, competitions and voucher schemes are the
most popular. Companies use sponsorship and public relations to improve their image, notably
through financing sports, the arts and public information services.
In an effort to lift revenue, Delta did a discount on its fees to its posh airport lounges that cater to its
elite frequent fliers. In 2011, it offered one–day passes on Groupon for 50 percent off and five–visit
passes for $89. Regular customers usually pay annual fees of $450 for the club or $50 to get in for
one day. Frequent fliers with Diamond

Airline Marketing Plan
Executive Summary
1.0 Executive Summary
Puddle Jumpers Airlines, Inc. is a new consumer airline in its formative stages. It is being organized
to take advantage of a specific gap in the short–haul domestic travel market. The gap exists in low
cost service out of Anytown, U.S.A. The gap in the availability of low cost service in and out of the
Anytown hub coupled with the demand for passenger travel on selected routes from Anytown
indicates that a new entrant airline could be expected to capture a significant portion of current air
travel business at that hub.
The management of Puddle Jumpers is experienced in airline start–ups. Previously management
grew Private Jet Airlines from a single Boeing 727 to a fleet of 16 MD80 series ... Show more
content on Helpwriting.net ...
Marketing; either dealing with channel problems and barriers to entry; or solving problems with
major advertising and promotion budgets. Targeted market share must be achieved even amidst
expected competition. Product quality. Always with safety foremost. Services delivered on time,
costs controlled, marketing budgets managed. There is a temptation to fix on growth at the expense
of profits. Also, rapid growth will be curtailed in order to keep maintenance standards both strict and
measurable. Cost control. The over–all cost per ASM (available seat mile) is pegged at 7.0 cents or
less in 1996 dollars. This ASM factor places Puddle Jumpers in a grouping of the lowest four in the
airline industry within the short–haul market. (US Air, the dominate carrier in the Anytown market,
averages 12.0 cents per ASM by comparison). The only three airlines with lower operating costs
also operate older and less reliable equipment, and even then the lowest short–haul cost in the airline
industry is currently Southwest at 6.43 cents per ASM.
Company Summary
2.0 Company Summary
Puddle Jumpers International Airlines is being formed in July, 1996 as a South State Corporation. Its
offices will be in Anytown, Georgia. The founder of Puddle Jumpers is Kenneth D. Smith. Mr.
Smith has extensive experience in consumer aviation. His bio as well as the backgrounds of all the
members of Puddle Jumpers 's management team are enclosed herein.
2.1 Company Ownership

Southwest Airlines
I. Current Situation
Following the Deregulation in 1978, a competitive price war ensued among the airline industry as a
direct result of the new freedom for airlines to set their own fares as well as route entry and exits.
This gave rise to the operating structure of the airlines as it exists today, consisting of the point–to–
point system and the hub and spoke system. With this came the change of focus for major airlines to
non–stop, cross–country routes in densely populated cities, which, in a regulated environment,
would be profitable. This resulted in the obvious outcome of increased competition, thus lowering
the average industry prices for non–stop cross country routes which were profitable. This caused
operating costs to ... Show more content on Helpwriting.net ...
Delta, totaling 3,567,345 in sales, ranked just below Southwest, making them the primary
competitor. The remaining 19% of the overall market is allocated almost evenly amongst the smaller
carriers, which are all far behind the top seven.
4. Industry Pricing
Because fares vary depending on many stipulations, typical industry rates will be analyzed using the
following criteria: A roundtrip flight for one passenger departing from Newark, New Jersey on May
10, 2005 to Las Vegas, Nevada, and returning May 15, 2005. Using this criteria, the rates from the
primary seven airlines in the industry from the lowest to the highest are as follows:
• Southwest– $ 208
• US Airways– $ 208
• American Airlines– $ 390
• Northwest– $ 407
• Delta– $ 517
• United– $ 637
• Continental– $ 688
It can be noted that Southwest has clearly dominated its competition in terms of pricing and being
the low cost provider up until recently. US Airways has since began a pricing campaign to directly
compete for market share, going as far as lowering its fares to match those of Southwest to the
dollar. Other airlines, however, have been unable to lower prices to such a drastic extent, falling
victim to the recession of the airline industry and suffering from having too much inventory (planes,
seats, etc.) and not enough business.
B. Marketing Function

Southwest
A.

Lufthansa Airlines
Executive Overview:
Lufthansa is the largest airline in Europe in terms of passengers carried. By 2002, Lufthansa had
become of the strongest airlines and top aviations groups in the world. Lufthansa had undergone a
decade of fundamental change. Lufthansa was transformed from a state–owned, unprofitable
national airline into one of the most profitable, privately owned aviation groups in the industry. The
group turned a record loss of €350 million in 1992 into a pre–tax profit of €952 million in 2002.
This financial result reflected Lufthansa's major competitive advantage–its ability to respond
rapidly, act flexibly, and withstand crises. Lufthansa proved its unique change management
competence when it coped with September 11th, the ... Show more content on Helpwriting.net ...
The EU economy is expected to grow further over the next decade as more countries join the union
– especially considering that the new States are usually poorer than the EU average, and hence the
expected fast GDP growth will help achieve the dynamic of the united Europe. It is estimated that
the Eurozone will grow around 2.6 per cent this year (2006), on a par with other industrialized
nations such as the United States at 2.6% (Q2 2006) and 1.6 (Q3 2006).
GDP: $12.82 trillion. (2006) GDP/capita: $18,056. Annual growth of per capita GDP: 2.8% (2006).
Income of top 10%: 27.5%. Unemployment 8.8% (2006).
Opportunities:
1. GDP is growing; opportunity to take advantage of that growth.
2. The EU has made doing business across borders easier with standardized currency and regulation.
3. Inflation rates are steady along with currency rates; currency exchange risk will be lower.
Threats:
1. The European economy is not growing as fast as developing nations such as China.
2. The EU has a lot of power over the economy in terms of currency rates and regulations.
Political/Legal Segment
The European Union has evolved over time from a primarily economic union to an increasingly
political one. This trend is highlighted by the increasing number of policy areas that fall within EU
competence: political power has tended to shift upwards from the Member States to the EU. The
European Free Trade Association (EFTA) was established on May 3,

Ryanair Airlines And The Ryanair Airline
After researching and went through many articles which were published on the Ryanair Airline in
Europe. To me, the online resources are more utilized as book resources which can be dated back to
20th century or more. The article 's which I read gives different facts and the information on
marketing strategies which were used by the Ryanair Airline. Many of the contents are related to the
work which I learned from this course on Airlines, and Airline Management and Marketing. The
Ryanair Airline is known for its ' low airfare and consistent profitability and rapid growth. I think,
the main goal for the Ryanair Airline is to provide low airfares for their customers and give high
level of service, most of Ryanair passengers get excellent ... Show more content on Helpwriting.net
...
On the other hand CEO Michael O 'Leary, thinks that if their customers to wants have goods such as
a pack of peanut 's, tea, food or etc.. they can pay because most of their flights are not that long. The
way CEO is saying that its not a good customer 's service which airlines provide. But, Ryanair
Airlines are still the cheaper airlines through European countries, and that 's why there are are many
customers who are flying with them. There are no airlines which can beat their lowest airfare rates
all over the world. The Marketing concepts which are used by the Ryanair Airlines. Ryanair used
Marketing mix which comprises with the 4 P 's which I learned from the book, and the 4 P 's which
stands for: Price, Promotion, Place, and Product. The 4 P 's which are provided by the Ryanair
Airlines are: Price (Low Airfares), Promotion (Cheap), Place (European Market), and Product
(Flights service). The Airline also, gives an overview of what kinds of prices and product are to
expect from the Ryanair airlines. "Our policy of exclusively operating the 737–800 is part of our
strategy to bring you the cheapest flights on all of our routes, and in fact, our sole use of the 737–
800 is not just good for fares, but also for safety". (Ryanair Website).
As I read the article "Ryanair unveils TV advert – will it convince you to fly with the

Delta Airlines : A Commercial Airline Company
Running head: DELTAAIRLINES
Delta Airlines
Makenzie Durgin
Embry–Riddle Aeronautical University
Delta Airlines Abstract Delta Airlines is a commercial airline company that has been around since
1924. They fly to many destinations all over the world. Their fleet of airplanes consists of 822
airplanes. Delta Airlines is currently headquartered out of Atlanta, Georgia. Getting from point A to
point B with Delta would be easy and plausible with their ability to service over 325 travel
destinations all over the world. They are even able to broaden their horizon with their seven airline
partners making it easier for their clients to get where they want to go around the world. Delta has
top of the line pilots with stringent requirements ensuring their pilots have the ability to safely and
accurately fly from point A to point B.
Delta Airlines
Delta airlines originated in 1924. Delta has over 325 destinations worldwide that span from North
America to Asia and Europe. The Delta airlines fleet consists of 822 airplanes and they also have
seven airline partners so they are able to broaden their horizon for destinations. Of the 822 Delta
airplanes, 642 are owned and 180 are leased. The average age of each of the airplanes is 17 years.
Delta has a wide variety of different models holding 19 different makes and models. "The airline
along with its subsidiaries and regional affiliates operate over 5,400 flights daily and serve an
extensive domestic and

Delta Airlines : A Major American Airline Company And One...
1. Delta Airlines is a major American airline company and one of the world's largest global airlines.
The company has operation hubs in the USA, Japan, and France. (Delta Airlines, 2016).
2. USA, Japan, and France are all members of the IMF, the World Bank, and WTO.
3. All three countries actively follow the guidelines of these major international institutions.
According to Managing Director of the IMF (Kohler, 2002), "There has been a near–revolution in
transparency at the IMF, and a steady improvement in the release of economic information by our
member countries." It is essential for countries to be transparent in their annual checkups from the
IMF in order to keep all member countries up to date on economic data in countries they have
financial dealings with. This information is what keeps countries from financial crisis. The United
States is the largest shareholder of the World Bank and is the only country with veto power over
changes in structure, therefore the US plays a major role in developing and supporting the World
Bank's mission (The World Bank, 2013). Since 1998, France has only been a respondent to 4 dispute
cases (World Trade Organization), which shows that they actively try to follow the guidelines.
4. The United States, France, and Japan all have functioning judiciary systems. France and Japan
both have a civil law system, while the US has a common law system (The World Factbook, 2016).
All the countries have an Executive branch, Legislative branch,

Airways Airlines
Commercial airlines provide a bevy of services to customers and often differentiate ever so
minuscule to win customers from rival airlines. Not only are airlines competing amongst one
another for customers but adverse situations such as adverse weather, equipment failures and
Transport Security Administration (TSA). Airlines are competing with each other while the
customers are debating if they want to deal with the stress of flying. Airlines offer services or
amenities to make it more appealing to use their services. All planes fly from point A to point B, but
what goes on in between makes the difference in the customer's commercial flying experience.
With so many services provided by airlines it's best, to look at the big picture and ... Show more
Just as fast a company gains a customer they could lose a customer if the services are not provided
fast enough. Not only should the service be provided efficiently but quality laden to. Using
technology to provide services to customers should not water down the quality provided.
Adjusting to a customer is not a direct service but something that the services are provided need to
accomplish. For instance, weather delays where customer miss their connecting flights, airlines
partner with one another to get the customer to their destination the same day. However, this is not
always possible, and airlines typically provide meal and lodging when there are not able to.
Adjusting to customers during extended delays will help to satisfy customers when circumstances
are uncontrollable. Customers do not care that the aircraft that they were supposed to fly is broken
but only that they want to get to their destination for safe and sound without delay. Airlines that have
coordination management with their services will attract the most customers.
Service Delivery Process Blue Print
Description of the Buying Process
Service Delivery Process prior to purchase: In the service delivery process prior to purchasing the
services, initial contact with a customer comes to customer service representative. Customer service
representative listens to the needs of customer

Jetblue Airlines : An American Low Cost Airline And The...
JetBlue is an American low–cost airline and the 5th largest airline in the United States. The airline
carries over 30 million customers a year to 86 cities in the U.S, Caribbean and Latin America with
an average of 850 flights daily. JetBlue Airlines was founded in 1999 by David Neeleman, the
company was formerly known as New Air which Neeleman started in 1998. The company was
incorporated in Delaware in August 1998, with the headquarters in Long Island City and its main
base at John F. Kennedy International Airport. David Neeleman started the company with a specific
vision in mind "To bring humanity back to air travel and to make flying more enjoyable". He did
however step down from his position as CEO due to a disruption of operations at JFK airport during
an ice storm. He turned over the position to Dave Barger who served as CEO from 2007 to 2015
until the current CEO Robin Hayes took over in February 2015. As an entrepreneurial leader,
Neeleman is persistent, independent and action oriented. This made it difficult for him to step down,
as his board of directors urged him to do so. However, he demonstrated humility and handled this
major conflict by utilizing the compromising style, Neeleman did, however, stay on as the chairman
of the company.
David Neeleman sets the bar in the airline industry by concentrating on customer and employee
satisfaction. JetBlue has a service orientated culture grounded in five key values; safety, caring,
integrity, passion, and fun.

Southwest Airlines
Gate Turnaround at Southwest Airlines
Video Case Study
Southwest Airlines was started in 1971 by Rollin King and Herb Kelleher. Their idea was simple. If
they could take airline passengers where they want to go, on time, at the lowest possible price; all
while having fun doing it, then people would love to fly on their airline. As a result of this, no other
airline in the industry's history has enjoyed the customer loyalty and extended profitability which
Southwest is now famous for. The company now flies more than
3,400 times each day to over 64 destinations across the United States. (Krajewski, Ritzman &
Malhotra 2010) Turnaround times at the airports are another reason that ... Show more content on
Helpwriting.net ...
Weather delays and unexpected maintenance issues are two key issues that that will inevitably
happen with no advanced notice in most cases. While these are the "worst case scenarios" for
problems the airline will face, there are also other issues that can be experienced on a daily basis.
The issues encountered can occur on both the company and customer side, among them are the
customer experience; are they familiar with Southwest's "boarding method", the carryon policy for
the company, the learning curve of the employees, and the type of clientele encountered; business or
leisure travelers. All of the above issues could adversely affect the turnaround time for the company
by slowing the crew, Southwest has built enough cushion into their schedules to accommodate
issues that arise and help to keep the flights on schedule and turnaround times low. The next
question that needs to be answered is "how does Southwest know they are achieving their goals?"
The company knows when they have achieved their goals when internal and external metrics are
reached. Using DOT metrics for all airlines, Southwest can set achievements based on these
dimensions. The DOT metric tracks on–time departures, customer complaints, and mishandled
baggage. One customer complaint or mishandled bag can be the difference between being number
one or number two in the industry. The company sets targets
for

American Airlines: Southwest Airlines
South west airline is among the largest America carrier in terms of customer boarding. The company
which embarked its operations on three major Texas cities, which are Dallas, Houston and San
Antonio, in 1971, has expanded rapidly, and operates over 350 Boeing 737 aircraft all over the
United States. The company has the lowest operating cost structure in the domestic airline industry,
whereby it provides primarily short haul, high frequency, point–to–point, and the lowest and
simplest fares. The airline currently serves 59 airports in 58 cities in 30 states. The company has
managed to retain one of the best customer service records. The main core advantage of the
company on which it can leverage on, is that the work more productively, more ... Show more
The work force owns 11% of the company, and this helps in aligning their interests to those of the
airline. The company has managed tri achieve a team spirit which can only be an envy of others.
The company provides their employees with enormous information aimed at enabling them to better
understand the company, its mission, its customers and its competitors (Hallowell, 1996). The
employees are made to understand that they must at all times comply with the company concept of
never inconveniencing the valued customer. It's by virtue of sticking to its formula of excellent
customer service and a positive working environment for employees that the company has managed
to remain profitable for over 30 years. The company has had only one strike in its history and has
only three employees laid off in 25 years of who were rehired immediately. It is through this job
security that loyalty to the company is enhanced. Efficient working practices and low employee
turnover help to reduce Southwest's costs, thereby making it much more successful competitively
(.Slack, F. J., Orife, J. N., & Anderson, F. P. (2010).
The company has also a distinctive marketing approach. It is through these marketing approaches
that the company tries to distinguish itself from the rest from the airline industry. In their marketing,
the company tries to assure the consumers that they offer real

Southwest Airline
2. SWOT Analysis
2.1 Strengths
1) Focus on point–to–point service. This service provides more direct nonstop flights that can
minimize delays and total trip time.
2) Low operating costs
– Use a single type of aircraft (Boeing 737) that makes scheduling, operations, maintenance, and
training more simplified.
– Outfit the fleet with fuel–saving, performance–enhancing blended winglet that extend flight range,
save fuel, and reduce engine maintenance costs and takeoff noise.
– Fuel cost saving. Southwest effectively takes advantage of fuel hedging to buy fuel at lower
prices. And to cut fuel cost Southwest also takes some other actions such as carrying less water for
bathroom, and replacing passenger seats with lighter models.
– ... Show more content on Helpwriting.net ...
If there is competition on the routes, the monetary cost and time it takes to switch form one airline to
another is low. This also intensifies the rivalry among current competitors.
Other factors contributing to rivalry include enormous fixed costs, excess capacity, low
differentiation, price wars. And the exit barrier for airline industry is also very high.
3.2 Potential Entrants
Because of the deregulation of the government policy, there are a number of new airlines that
entered the industry at first. However the most significant barrier to entry that new entrants face is
significant post–entry competition from existing major airlines. The existing market is already
saturate. In order to open market the new entrances have to lower the price of their limited routes.
But they are facing the stronger competitor who can provide lower price on the same routes while
create profit on the other non–competing routes.
Another barrier the new entrances have to confront is the high capital requirement. The airline
industry is tremendously capital intensive.
3.3 Bargaining Power of Suppliers
In airline industry there are three major suppliers; jet–fuel providers, airplane manufactures and
labor. Due to the current economic situation and ever–increasing fuel price, the position of the
airline industry to its jet–fuel suppliers is worse. While the power of jet–fuel suppliers is stronger,
the influence of airplane manufacture and labor on the airline

Jetblue Airlines : The Biggest Airline
According to Fortune 500 (2015), Delta airlines is the largest airline in the world today and is able to
fly to 567 worldwide destinations in over 100 countries. Delta airlines owns and operates its own
reservations system and data and they give the employees stock in the company with profit sharing
and stock ownership. One weakness of Delta airlines is the relying on it 's much older refurbished
airplanes. Since oil prices are low they are able to save on costs but that could change if they oil
prices increase again. US Airways has merged with American Airlines and the two have since
become the world 's largest airline but both have since faced losses since the 2008–2009 economic
crisis. US Airways has also had poor customer service ... Show more content on Helpwriting.net ...
There also could be a decline in leisure time travel due to the terrorism that took place on 9/11. A
dejected economy can also have an adverse effect on travel. New government regulations could also
make air travel more costly since there are not very many areas that an airline can reduce its costs so
they would have to increase prices. Technology is taking a step forward via ticketing and Southwest
airlines allows passengers to check in online up to 24 hours in advance. Southwest Airlines
differentiates itself from its competitors by its marketing communications as the only low–fare,
short haul, high frequency, point to point carrier in America that is "fun" to fly (YouSigma, 2008).
Southwest 's promotion starts with understanding what the customer wants and then translating it
into meaningful services and products. Because Southwest is intuitive to its customers needs, it
helps instill the brand and the commitment. Southwest airlines employs the most basic form of price
competition by running ads that encourage potential customers to visit their website for the best
online deals (YouSigma, 2008).
Marketing Strategy
Southwest employs a qualified and extremely skilled management team. This airline has the
financial stability and solid understanding of the aviation business. Not only are its customers a vital
cog of the organization 's success but also its employees. Each employee is familiar

Delta Airlines
Situation Synopsis:
Margins in air industry have been shrinking for decades. Low Cost Carriers (LCCs) such as JetBlue
and Southeast have made inroads to Delta's Florida market which stands for 30% of Delta's
revenues. After 911 Attacks, the demand decreased. DeltaExpress, Delta's low–cost subsidiary, is
launched to respond LCCs threat but it is not as successful as it was thought it would be.
Delta's current Strategy:
Delta mainline is a legacy airline and competes utilizing its low price and productivity. DeltaExpress
tries to build on Delta's leading position. DeltaExpress is an integral part of Delta and centrally
managed in terms of pricing, flight frequency and routing and all the resources are shared. It benefits
from the high ... Show more content on Helpwriting.net ...
In operations, Delta's over–gauged hubs are under performing because of extra capacity and low
load factors. Delta is not adapted itself suitably with the new trend in forward integration with travel
agents and launching online ticket selling websites and is losing the related cost savings in this
section.
Key Success Factors:
Cost, capacity management (load factor, turn time), channel management, differentiation, union
relations and personnel management are success determinants in the industry. Pay cut negotiations
with unions failed. In terms of integration with distribution channels, Delta has not caught up with
Internet technology in order to reach the customers and share the benefits of omitting intermediaries
with passengers. Delta has not differentiated itself by enhancing in–flight experience for passengers
aligned with a "unique culture" leveraging its reputation.
Competitive Situation Analysis
Competitive Forces:
Buyers have a high power. They are knowledgeable about the price and have lots of choices.
Suppliers' power is high since there only two major plane manufacturers. Barriers to entry are high
due to low margins and high up–front costs. Totally, competition is high with few major players and
lots of cost–cut players. Overall Consumers have many choices and cost/ Differentiation is a critical
competitive factor (Appendix

Southwest Airlines And The Airline Industry
Executive Summary Southwest Airlines is a competitor in the airline industry who models
themselves as a low fare company who cares about people. These two aspects are that backbone to
their business. It is what sets them apart from their major competitors, such as Delta/Northwest,
Continental/United, JetBlue, and Allegiant. Government regulation has allowed for more travel due
to deregulation. This means there are more consumers than ever entering the industry. As more
consumers enter the market, more competitors arise to assist that demand. Southwest Airlines has
kept their stronghold on the market by continuing to offer their low fares, while not sacrificing their
caring attitude towards consumers and employees.
Within every industry, there will be threats. In the airline industry, there is the threat of terroristic
violence, and technological issues. Also, governmental interference and social acceptance will
continue to shape how the industry operates. Southwest Airlines will need to predict and adapt to all
possible threats in the industry. Currently Southwest Airlines' strengths in the industry are their
ability to keep fares low due to the Airline Deregulation Act of 1978. However, their weaknesses are
competitors trying to copy their model.
Three alternative strategies are proposed in this analysis, but only one option is deemed possible for
success. It is important for Southwest Airlines to remain in the low fare business and offer the
Southwest Spirit. That is

British Airlines Change
British Airways have been the symbol of the United Kingdom and its airlines for many years. They
are the largest airline in the UK and have the largest amount of international flights and destinations.
British Airways was formed in 1974 after four UK airlines, BEA, BOAC, Northeast Airlines, and
Newcastle, were dissolved. The airline aimed at being a worldwide network and achieving
economies of scale. This joining of four different organizations caused the airlines to have over
50,000 staff members and 215 aircrafts, which is considered to be grossly overstaffed and suffered
allot of management structure problems. British Airlines also suffered serious cultural differences
due to a 'class' distinction with the staff members.
When British Airways was formed it faced a large amount of problems. One of those main problems
came from the members of the different organizations interacting with one another and receiving
disruptive tensions. The other big issue came from the poor management system that was set in
place at the time. British Airways had a very inflexible, hierarchical management system and it
caused constant questions of authority. The new management also had problems in identifying and
addressing the needs of their customers. Because the company focused more on keeping track of
their various routes and internal control management customer service suffered greatly. This lead to
BA customers being unsatisfied." I remember going to parties in the late

Emirates Airlines
This essay evaluates some of the service marketing management aspects of a service industry,
namely service process, service people, resource utilization and performance management, and
accesses the contribution of each factor to the success of the organization. This essay analyses how
each of these factors, along with its applications and limitations affect the Emirates Airlines; the
largest airline of the Middle East, and the seventh largest in the world (Emirates, 2015). In today's
age of intense competition and globalization, establishing service quality is one of the most vital
sources to gain a competitive advantage for any service industry.
One of the best examples of the service industry is the airline industry, and is becoming more
competitive due to the vast choice of airlines and also deregulation of airlines. It has also been
suggested by Gronroos (1991), the ... Show more content on Helpwriting.net ...
Service process can be understood as a series of interrelated activities carried out in an orderly
manner to create a service and achieve a desired output (Johnston and Shulver, 2012). A good
service process, when executed efficiently apart from creating satisfied customers aids in cost
reduction. Emirates faces fierce competition not only from many airlines such as Etihad Airways
and Air France, but also budget airlines such as Air Arabia, hence the ability to respond promptly
and effectively is essential to keep up with the competitive industry (CAPA, 2015). Service process
is considered to be a significant part of any organizations operation as it links staff, customers to the
service concept. When it comes to customer satisfaction and quality of service, Emirates Airlines
ensures top priority. John Carlzon (1987) suggested that the key aspect of the service experience,
also known as 'moment of truth', is the first encounter of every customer with the organizations front
office

The Southwest Airlines
Southwest Airlines
Introduction
The vision of a company discusses what the company hopes to achieve within a given period. The
vision of a company promotes the development and is a measure of growth within the organization.
The value of the company incorporates the people who are valuable to the company. The company
can value its workers, shareholders or its customers in a given market. The vision of the company
should be long term and should be unique compared to the visions of other companies. The
management should formulate a mission statement for every statement to remind the workers why
the company operates and its objective. The mission statement serves as a reminder that the
company has some objectives that the workers have to work on to be achieved. Failure in most
companies is attributed to the loss of sight of the objectives set by the company. The management
should emphasis on the mission statement to ensure the success of the company (Gittell, 2005).
Goals and objectives
The goals of a company or the objectives are the targets that the organization aims to achieve to
have a competitiveÂ niche over otherÂ businesses in the market. In the formulation of a company's
goals, the management must take into account the vision of the company. The Mission statement for
Southwest Airlines is to ensure high quality customer services with logic of warmth, company spirit
and pride while being friendly to the customers. The company values include the customers who

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