Week2
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The airline industry faces increased competition as travelers spend less than in the past and airlines have struggled financially, while time has become more important to travelers facing longer airport lines, fewer flight options, and connections, leading more to consider corporate jet travel, which most individuals cannot afford.
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The document discusses attributes required for cabin crew in the aviation industry and factors affecting the development of the aviation industry in India, including the rise of low-cost airlines and increased domestic airlines. It also outlines advantages and disadvantages of low-cost airlines and increased domestic airlines, and how India's improving economy has positively impacted the aviation industry through infrastructure development and competitive pricing policies. However, the current scenario faces challenges of increasing oil prices, air ticket prices, and losses among some airlines. The conclusion emphasizes the important role of government and need for more efficient aircraft, collaboration among airlines, and standardized airports.
Delta air lines maria medvedeva dlemba2010 v2
This document contains a case study analysis of Delta Air Lines and the airline industry in the 1990s. It discusses:
1) Why the airline industry had low returns on investment in the 1990s, due to high costs from aircraft suppliers, unpredictable fuel and labor expenses, price-sensitive customers, and intense competition.
2) How Southwest Airlines and JetBlue were able to earn better returns despite industry conditions, with Southwest focusing on regional routes with standardized aircraft and flexible union contracts, and JetBlue targeting business travelers on key routes with amenities like in-flight entertainment.
3) An exhibit analyzing Porter's Five Forces model for the airline industry and how different carriers approached suppliers, customers, and competition differently to improve
C-208 CASE 28 JETBLUE AIRWAYS CORPORATION GETTING OVER THE BLUES.docx
C-208 CASE 28 JETBLUE AIRWAYS CORPORATION: GETTING OVER THE “BLUES”? *
In 2017 JetBlue faced challenges that included rising fuel prices, troubling technical disruptions, and declining quality of the flying experience. Since the beginning of 2016, JetBlue had enjoyed low fuel prices that helped increase their earnings about 18 percent during the second quarter of 2016,1 but the company experienced technical issues that caused booking problems and resulted in delays, as well as bad publicity. In order to cope with the likelihood of a rise in future fuel prices, JetBlue undertook massive cost reductions by investing in cabin restyling, for instance, adding more seats to JetBlue’s A320 airplanes. However, the shrinking legroom that accompanied the cabin restyling was despised by passengers, which posed a problem for an airline that had once offered customers a captivating (as opposed to a captive) flying experience. To meet the challenges, new CEO Robin Hayes orchestrated various initiatives that the company planned to take through 2017. Those initiatives included wider fare options, enhanced Mint services, cabin restyling, new lines of JetBlue credit cards, and partnerships with other airlines.2 The founding CEO of JetBlue, David Neeleman, had been ousted by the board of directors after a notorious event when an ice storm severely disrupted the airline’s operations.3 In 2007, Dave Barger, an employee since the inception of JetBlue in 1998, became the second CEO of the company. Ultimately Barger was pressured to step down amid constantly depressed stock prices. In February 2015, Robin Hayes took charge of the company as its third chief executive. Hayes was the executive vice president of British Airways for the Americas before joining JetBlue in August 2008. Having worked for about 25 years and having extensive experience in the airline industry, Hayes was considered an optimal choice to become the third chief executive of Jet Blue.
The U.S. Airline Industry
The U.S. airline industry consists of three primary segments: major airlines, regional airlines, and low-fare airlines. Major U.S. airlines, as defined by the Department of Transportation, are those with annual revenues of over $1 billion. Most major airlines utilize the hub-and-spoke route system. In this system, the operations are concentrated in a limited number of hub cities, while other destinations are served by providing one-stop or connecting service through the hub. Scheduled flights serve most large cities within the United States and abroad and also serve numerous smaller cities. Regional airlines typically operate smaller aircraft on lower-volume routes than do major airlines. They typically enter into relationships with major airlines and carry their passengers on the “spoke”—that is, between a hub or larger city and a smaller city. Unlike the low-fare airlines, the regional airlines do not have an independent route system. Deregulation of the U.S. airline industry in 1978 ushe.
Air Travel Is Broken!
We need a new "system" for air travel that is convenient and doesn't waste our time. When it comes to air travel today, no one enjoys it. Why can't we reinvent air travel so that it serves the travelers intent. Time and convenience is our intent and there is a better way.
Jet blue airways starting from the scratch
JetBlue was founded in 1998 by David Neeleman, a former Southwest Airlines employee, with an initial capital of $130 million. Its home base is New York City's JFK International Airport. JetBlue sought to distinguish itself from competitors by offering low fares, high quality service, and amenities like leather seats and DirectTV. It utilizes information and communication technologies to efficiently operate a single aircraft type with one class of service. JetBlue has survived through a focus on customer service, value, and organizational culture while keeping costs low. Its core competence is a value-based approach needed to sustain its culture and outperform competitors.
Low cost airlines
The document outlines the aviation industry in India and the potential for low-cost airlines. It discusses how India's aviation market was previously a monopoly but was opened to private players in 1994. Low-cost carriers emerged promising lower fares but without extra services. Strategies of low-cost airlines included using secondary airports, outsourcing, and charging for extras. Air Deccan launched in 2003 as India's first low-cost carrier, aiming to make air travel affordable through strategies like high aircraft utilization and dynamic pricing. However, factors like rising costs, new entrant competition, and high risk perception have made it difficult for low-cost airlines to succeed in India.
Emirates_Case_Study
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Emirates
This document provides an overview of Emirates airline, including key details about its founding, headquarters, fleet size, destinations served, and ownership structure. It also summarizes some of Emirates' strategic partnerships and business activities. Charts are presented showing Emirates' sources of revenue and costs. The document then analyzes Emirates' success in building a strong global brand, including factors like government support, employee satisfaction, and innovation. Potential weaknesses in Emirates' strategic direction are discussed, along with how the airline could address issues like overlooking faults in marketing and being overconfident in its industry position. The impact of declining fuel prices on Emirates' future strategy is also considered.
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Week2
- 1. The Airline industry is more competitive than ever before. Travelers are now spending less than they did in the early 80’s. Unfortunately the airline industry has not made a substantial return on any investment, and lost huge amounts of money in the early 90’s. Time is becoming more and more important to travelers. With increased security measures, long lines at airports, less flight options, and connections people are now turning toward corporate jet travel. Unfortunately, most people are unable to afford corporate jet travel.
- 2. BizWings will target individuals who normally would not be able to afford private jet travel but who’s time is increasingly valuable. We will target professionals who generally travel long distance by car because they are still saving time as opposed to flying. We will now give these individuals the option of flight without sitting in long airport lines.
- 3. Airlines lack on time performance and reduced the number of flight options and availability.
- 4. Strengths Weakness Air travel when you need it No more long lines Prices are higher than Affordable commercial air travel Comfortable Other options are available You’re the boss New concept not understood by the general public Threats Opportunity Airlines lowering fares Major airlines serve the Change the way people travel area Bring customer service back to air People may choose low travel fare to save a couple Focus on improving the quality of hours time life for those who travel for business
- 5. I travel everyday for work. I am constantly stuck in traffic and rarely see my family when I get home. I wake up the next morning and prepare for another 2-5 hour commute. My territory is large and yet I still have to travel by car. BizWings would significantly improve my quality of life. Heather Drake
- 6. Major airlines: USAirways, American Airlines, Delta, Continental, Southwest, JetBlue , AirTran Corporate Jet Membership: NetJets, AvantAir Train: Amtrak Bus