Etihad Case Analysis

Etihad Case Analysis
The global airline industry has been growing rapidly in the last decade benefiting from many
factors. According to the international Air transport Association (IATA), the airline industry had
another strong year in 2014, solidifying a positive trend in profitability after huge losses during the
2008–2009 global economic recession. Net post tax profit for 2014 was $16.4 billion, a 2.2%
margin on revenues. (IATA , 2015). Much of that growth has been driven by low–cost carriers,
which now control some 25 percent of the worldwide market and which have been expanding
rapidly in emerging markets; growth also came from continued gains by carriers in developed
markets, the IATA reported. Having said that, yet profit margins for most airlines are razor ... Show
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Webb said "we are creating a digital guest experience center of excellence because we know that the
way people travel is changing and the travelers journey is really filled with lots of disconnects in
terms of information. We want to make that much more seamless–everything from our online
presence through our mobile applications, our loyalty programs–we are looking to digitize all of
those guest touch–points for the traveler's journey.(Forbs Magazine,
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The Opportunities And Threats That American Airlines Faces
According to MBASkool (2015), a SWOT analysis has been completed to show some of the
opportunities and threats that American Airlines faces. They are listed as follows:
Continued growth in disposable income
Increased business travel aligns with strong business traveler exposure
Increased demand for Pacific travel, more international destinations on popular routes
Leverage on code share agreement with a number of airlines
Capitalization on growth of HDTV
Threats
Technology–based disruptions in business travel (i.e. Skype)
Frequent–flier stealing programs
Low cost carriers (LCC), are a threat to the airline.
Increasing fuel costs and increasing labor costs Pending regulatory approval, Korean Air will place
its code on American Airlines flights between Dallas/Fort Worth International Airport (DFW) and
Incheon International (ICN) in Seoul, South Korea. Kurt Stache, American 's senior vice president –
Alliances and Partnerships, stated that "The new codeshare cooperation with Korean Air is an
important milestone in growing our relationships with carriers around the globe to provide
customers access to the destinations they value most". This is the next step in strengthening our
position in Asia, allowing us to win new customers in the region. We look forward to a strong
relationship with Korean Air" (American Airlines, 2015).
III. Branding A brand is a name, term, design, symbol, or any other feature that identifies one seller
's good or service

North American and European Airline Industry Essay
North American and European Airline Industry
INTRODUCTION
The Airline industry is one of the world's largest industries generating over $300 billion in revenues
in 2001 alone and additionally has the second highest industrial growth rate, after the computer
industry, with typical growth rates of 3–5% per annum over the last 20 years (Humphreys, 2003; BA
Fact book, 2002).
For the purpose of this assignment, freight/cargo airline activities will not be considered as freight
travel consists of only 2 % of total airline activity (see figure 3.1 and appendix 1) (BA Fact book,
2002,
ICAO, 2003). Furthermore, due to the nature of the airline industry and the Asian market being a lot
smaller and internally focused, we
will ... Show more content on Helpwriting.net ...
This has had significant implications for an industry which relies on these passengers for
approximately two thirds of its revenue (Economist, 2001). The reduction in business passenger
numbers has resulted not only in adding to the already existing overcapacity problem but also in
increasing competitive pressures, the resultant effect being a persistent downtrend in airfares. In
fact, after adjusting for inflation airline revenues per passenger kilometre are about half the level of
30 years ago (BA Fact Book, 2002). The birth of the low cost carriers and the increasing market
share they have acquired has further exacerbated this downward trend as passengers become more
price sensitive.
1.2 Political Forces facing the airline industry
The airline industry is also very much in the political frontline (see figure 1.1). The implications of
terrorism for the industry are evident from the statistics – 2001 was only the second year in the
history of modern civil aviation in which international air traffic declined (IATA, 2002) and,
although air traffic has since improved, it is nevertheless still below pre–September 11 levels.
Furthermore, the knock on effects it has had in other areas of the industry, most notably the
vertiginous rise in the cost of insurance and security, has further added to the economic woes of the
industry. Since the attacks insurance companies immediately increased insurance premiums and
reduced

United Airlines And Merger With Continental Airlines Essay
ABSTRACT
UAL Corp.'s United Airlines announced merger with Continental Airlines Inc. on May 3, 2010 and
became the world's largest airline. This $3 billion merger between the two airline companies lifted
the beigest regulatory hurdle ever in the international aviation sector. In this paper, I will review
through the timeline that covers from the announcement of the merger to the completion with major
milestones noted and what role the Federal Trade Commission (FTC) was playing in this merger.
TIMELINE
June 2008: CEOs of both United Airlines and Continental Airlines signed and alliance pact. The
alliance is an agreement to link international networks and share technology and passenger perks.
This agreement is basically a "virtual merger" that includes many of the benefits of a merger without
the actual costs and restructuring involved. The alliance took effect about a year after Delta Air
Lines and Northwest Airlines completed their merger, as that released Continental from the
SkyTeam contract and allowed for the required nine–month notice. Additionally, Continental joined
the Star Alliance, as Delta and Northwest merged.
April 2010: United Airlines was reported to be in serious merger discussion with US Airways.
May 2, 2010: The board of Directors at Continental and United Airlines approved a stock–swap deal
that would combine them into the world's largest airline. Both airlines have taken losses in the
recession and expect the merger to generate savings of more than $1

Airline Industry Essay
Management Accountin
TERM PAPER
Abstract: Competition today is one of the major threats to an airline industry. Competitive
advantage therefore can be achieved by establishing cost leadership. The ultimate challenge faced
by any company would be to leverage between the escalating operational costs and falling revenues
so as to maximise the profits. Determine the costing procedure of an airline industry and the various
possible efforts it takes to reduce the costs. The airline industry employs a trend and horizontal
analysis to evaluate its performance and productivity. This industry can be categorised into
international, national, regional and cargo operations. The major costs incurred by the airline
industry are weather costs, fuel ... Show more content on Helpwriting.net ...
In response to the adverse financial results the airline industry has experienced, most airlines have
taken actions in an effort to reduce losses, such as reducing capacity, reducing employee headcount,
limiting service offerings, renegotiating labor contracts and reconfiguring flight schedules, as well
as other efficiency and cost–cutting measures. Despite these actions, financial losses in the airline
industry have continued through 2005 and it is foreseeable that further airline reorganizations,
bankruptcies or consolidations may occur, which could serve to reduce our cost advantage. We
cannot assure you that the occurrence of these events or potential changes resulting from these
events will not harm our business or the airline industry generally. Major airlines are reducing their
cost structures through various methods, these changes could reduce our cost advantage. The airline
industry has incurred significant losses resulting in airline restructurings and bankruptcies, which
could result in changes in our industry. As a result of slower general economic conditions, the
continuing impact of the 2001 terrorist attacks, the high price of fuel and military action in Iraq, the
airline industry has experienced a decline in demand which has resulted in record financial losses.

Discussion Surrounding Global Alliances Operating in the...
The international aviation industry is arguably one of the most competitive and cut–throat
businesses in the world today. Characterised by high revenue but notoriously thin profit margins,
modern international airlines are constantly searching for methods to gain advantages over their
competitors and attract new customers. One of these methods which has become popular since the
late 1990s is that of the global airline alliance. Today there are three major alliances in operation,
each containing different member airlines. These alliances offer airline customers various
advantages over travel with a traditional carrier. Nevertheless, these advantages have been criticised
by some as being anti–competitive, there are several examples of ... Show more content on
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Another major airline alliance operating today is the Oneworld alliance. Founded on 1 February
1999 by giants such as British Airways, Cathay Pacific, and Qantas, it has expanded to include
twelve member airlines, and has an additional twenty non–voting affiliate members, such as
QantasLink, subsidiary of Qantas, and Dragonair, subsidiary of Cathay Pacific. Oneworld also won
the Skytrax award for best airline alliance in 2010, and has won more international awards than the
other two main alliances (Oneworld, 2011). However, some may argue that the quantity of awards
received is irrelevant, and the awards by Skytrax are recognised by many as the leading airline
awards. Oneworld is also a useful alliance for New Zealand based travellers, as Qantas' membership
allows frequent travellers access to the benefits of this alliance.
Skyteam was the last of the three major airline alliances to be founded, in June 2000. According to
Rodrigue (2005), the Skyteam alliance holds 21 per cent of the market share, when measured by
traffic, making it the second largest airline alliance operating today, after Star Alliance but before
Oneworld. Skyteam is made up of airline heavyweights such as the merged Air France–KLM, in
addition to Delta Airlines, Korean Air, and China Southern Airlines. Whilst the Skyteam alliance is
large, it has also failed to secure any Skytrax airline alliance awards (Skytrax, 2011). This combined
with the fact that there are currently no

Advantages And Disadvantages Of Alliances
Significant developments have occurred in the field of air transport. A large number of countries
made remarkable progress in liberalizing international air transport regulations, and became
involved in full market–access arrangements. At the same time, the airline industry underwent a
major shift and saw the forging alliances and mergers between companies in order to consolidate
their presence in a market environment characterized by strong competition. (Icao.int, 2013)
Alliances between airlines have become a dominant feature in air transport, and a new global
phenomenon unfolding relatively quickly through multiple collaborative business arrangements.
Alliance agreements took different forms and included various elements of code–sharing, ... Show
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Share fixed costs and resources.
Enlarge your distribution channels.
Broaden your business and political contact base.
Gain greater knowledge of international customs and culture.
Enhance your image in the world marketplace. (Laurel Delaney, 2017)
Disadvantages of Alliances are
In spite of their major advantages, airline alliances were criticized on a number of points including:
Alliances may not respect antitrust rules. Thereby exclude certain companies from the market, and
promote fair competition standards.
Due to their management of many key points and their competitive and marketing powers, alliances
could lead to the downfall of some companies that have to compete as low cost companies.
Alliances have grown radically, making their partnerships increasingly complex. (Icao.int, 2013)
Here are few more different disadvantages of the Alliances
Weaker management involvement or less equity stake.
Fear of market insulation due to local partner's presence.
Less efficient communication.
Poor resource allocation.
Difficult to keep objectives on target over time.
Loss of control over such important issues as product quality, operating costs, employees, etc.
(Laurel Delaney,

The Global Airline Alliances : An Important Part Of The...
The Global Airline Alliances is an important part of the airline business industry in the 21st century,
this includes: the increase of airline performances, provides great benefits for the employees,
customers and for the marketing industry. There are three main alliances in aviation today, this
includes, Star Alliance, Oneworld and Skyteam.
Firstly, the definition of an alliance is referred by the Federal Aviation Administration (FAA) as "A
merging of resources, operations, or financial interests between one corporation and another",
(Global Alliances, 2014). The alliances are coordinated in a variety of ways, depending on their
purposes. The Airline alliances work together with different airlines from different countries that are
being strict with laws and regulations that they have to accept. The three most significant alliances
that are still operating today are: Star Alliance, Oneworld and Skyteam. According to Fernandez de
la Torre & Pablo E. (1999). The main purpose of alliance would be, "The alliances main objective is
the increase of market coverage, through the strengthening of market position on certain routes and
the reduction of costs are additional sources of competitive advantage they provide to the
participating airlines." Alliances also assist by helping the smaller airline carriers in difficult
financial circumstances. The Airline alliances are competing every day, it is alliance versus alliance,
and to get things straight the airlines in an alliance do

Why Was The Star Alliance
Identify and Explain in detail (a) When was the alliance formed (b) Why was the alliance formed
and (c) Type of alliance used? Equity or Nonequity? Horizontal or Vertical? Star Alliance was
formed in 1997 as the first truly global airline alliance. It was originally founded by five member
airlines and has since expanded to include 27 member airlines. The five original founding members
were United Airlines, Air Canada, Lufthansa, Thai Airways International and SAS–Scandinavian
Airlines. The alliance was formed to enhance the experience of frequent international travelers. With
the highest number of member airlines, daily flights destinations and countries flown to, Star
Alliance is currently the leading global airline network. It is Star Alliance's mission to provide ...
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Perhaps one of the most important benefits is access to the Star Alliance branding. As we said
earlier, it is the current leader in the global airline industry. Member airlines are able to participate in
the fare products and business solutions which target multinational companies and meetings and
conventions industry (The Way the Earth Connects, n.d.). By being able to offer programs such as
these, airlines are able to grow their market share by offering new products and services to a new
market. Since participants in the alliance coordinate their networks and schedules, there is likely
also some production and operations cost savings to member airlines. Because of the vast number of
locations that Star Alliance offers as part of its network, another great benefit to the member airlines
is increased exposure to current and new customers. All of these benefits have the ability to lead to
increased revenue for each of the participating airlines in the

The Airline Industry: Trends, Challenges, Strategies
THE AIRLINE INDUSTRY: Trends, Challenges, Strategies
John Wensveen, Ph.D.
Dean, School of Aviation Dowling College New York, USA www.dowling.edu President, Airline
Visions www.airlinevisions.com
The University of Sydney Faculty of Economics and Business Leadership and Policy Seminar
Series Sydney, Australia 23 February 2010
Presentation Objectives
Provide background on the global industry Present a regional analysis Discuss current and future
evolvement of the industry (trends) Discuss challenges and strategies impacting the industry Discuss
the new breed of airlines Discuss why airlines fail and how to achieve success
Background Section
3 Stages of Development Impacting the Airline Industry
Regulation ... Show more content on Helpwriting.net ...
Airline profits to fall from $300M in 2007 to $200M in 2008
African Region
Low standards (safety, environment) Airlines do not contribute to regional economy Slow

The Business Philosophy And Labor
This paper is about American airline, it explores the business philosophy, Effects of the Economy,
business philosophy and labor. The report that follows delivers complete accounting for AA's
estimated impact on regional economies of the U.S. and its territories, including detail on straight
expenditure, employment, total economic impact and contribution towards GDP. This report
measures AA's impact on the economy in two forms: the economic activity that motivates the
production of the company's profitable products, and the economic activity that supports our
passengers' non–airline travel spending (e.g. hotels, rental cars, etc.). Total Economic Influence is a
measure of all incremental economic activity that underlies the manufacture ... Show more content
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These markets represent the top four U.S. population centers, and a geographically exclusive
gateway to Latin American in Miami. Domestically in 2012, AA served nearly 200 airports in 44
states, and flew more than one million flights carrying nearly 83 million passengers. A serves more
than 50 countries and territories with 3,500 daily flights. AA is also a founding member of the one
world alliance, which brings together some of the top and major names in the airline business.
Together, one world members and members–elect serve more than 840 destinations with more than
9,000 daily flights to 160 countries and territories. Effects of Regulation There are two predominant
views in contemporary economic thought explaining the driving force behind the rule of industries.
The first is the public–interest theory of rule, assumes that rule is recognized primarily for the
benefit of society or some large subclass of society at the outlay of regulated firms. In this case, the
government is the mechanism by which individuals in the economy express their demands to cure
market failures such as public goods, monopolies, and spillover problems. One could claim that the
airline industry was regulated for reasons such as national defense or limitation of monopoly
powers. Therefore, the public benefited from regulation. The second view of regulation, private–
interest theory, grips that regulation is sought to

Case Preparation Questions
Case Preparation Questions
Cola Wars Continue: Coke and Pepsi 1. Why is the soft drink industry so profitable? 2. Compare the
economics of the concentrate business to the bottling business: Why is the profitability so different?
3. How has the competition between Coke and Pepsi affected the industry's profits? 4. Can Coke and
Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non–
carbonated drinks?
Zara: Fast Fashion 1. How specifically do the distinctive features of Zara's business model affect its
operating economics? Specifically, compare Zara with an average retailer with similar posted prices.
In order to express all advantage/disadvantage on a common basis, you may ... Show more content
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3. Assess the future prospects of Intel. What is the biggest threat it faces? Whom should it be most
worried about? Put yourself in the position of Intel senior management and craft a strategy to deal
with these threats.
Apple Computer 2002 1. Historically, what were Apple's major competitive advantages? 2. Analyze
the structure of the personal computer industry over the last 10 years. How have the dynamics of the
PC industry changed? 3. Evaluate Apple's strategies since 1990? 4. Has Steve Jobs solved the
"problem?" What should Steve Jobs do today?
Google, Inc 1. What were the key factors behind Google's early success? 2. Do you expect the
search business to become more concentrated (i.e., dominated by fewer firms)? Is search a winner–
take–all business? 3. In addition to enhancing its core search businesses, should Google also branch
out into new arenas? Which of the following, would you recommend: 1) building a full–fledged
portal like Yahoo's; 2) targeting Microsoft's desktop software hegemony; and/or 3) becoming an e–
commerce intermediary like eBay? 4. Do you view Google's distinctive governance structure,
corporate culture, and organizational processes as strength or potential limitations?
Zimmer 1. Is this (medical device) a good business? Asses the profitability of this industry and
explain factors that affect the level of profitability. 2. How significant are the

Comparison Of Oneworld : Alliances In The International...
Alliances Comparison
Three major airline alliances now exist, bringing together between 15 and 27 airlines to reach over a
thousand destinations scattered all across the globe (Hill, 2014).
Oneworld
Oneworld was the second of the three major alliances to be born, launched two years after its rival
Star Alliance. The founding members were all long–established, well–respected airlines such as
British Airways, American Airlines and Qantas, who were soon joined by two more highly regarded
European carriers, FinnAir and Iberia. LanChile then came on board to provide coverage of Latin
America, followed by Royal Jordanian in 2005, the first Middle Eastern carrier to join any alliance
(Hill, 2014). Other significant airlines that have joined the alliance ever since includes Japan
Airlines and Malaysia Airlines, strengthening the alliance extensive coverage of Asia. Oneworld
aims to forge relationships with "frequent international travelers," particularly from the corporate
and business world, a goal reflected in its HQ location on Park Avenue, NY. It serves just under
1000 destination airports in over 150 countries – substantially fewer than either of its rivals, but
carefully targeted to appeal to its business clientele (oneworld, 2015). Oneworld was the first global
alliance to introduce interline ticketing between member airlines, which means you enjoy smooth
transfers and greater flexibility across the entire network, and offers the widest range of alliance
fares, making it

Competitive Challenges Of Lufthansa
2.1 The awareness of Star Alliance– how it is till now
2.1.1 Brand development
The creation of airline alliance in the 90's was driven by new level of competitive awareness in the
sky transportation field. There were many elements that influenced the decision of bounding airlines
such as to gain the competitive advantages by code–sharing to make growth in market share. Many
alliances were created back then, but later they consolidated and formed five big alliances that exist
till today and one of those and the biggest one is Star Alliance. The airlines within the alliance that
were under one network, still could maintain their own identities.
Despite the fact that Star Alliance was founded in 1997, the building of the started earlier in 1996 ...
Business model of Star Alliance is seem to be working properly with the large area of possibility to
travel and using frequent flyer programs. The biggest issue is the loss in integration between the
airlines or even absents of it. For the material and immaterial benefits integration must be wide
spread not only visible in small groups.
To work more efficiently they should invest and make a centralized IT infrastructure for all of the
systems. There were also too many cases where customer felt defrauded because of losing their
baggage or being unable to enter the lounge. These examples show the failure of delivering services
which were claimed by the alliance to be offered. That kind of inadequacy can cause a customer to
breakdown and stop using the company's services. Start Alliance is expected to bring seamless travel
environment so it should unify their operations.
The focus on a value should also be taken care of. Every airline should be examine on how much
value do they add to the alliance, because keeping a carrier just for the sake of having the largest
number of members does not seem to be profitable. With the measuring of the worth of each airline
it can be noticed which carrier fits and which would be better somewhere else. This should be done
also in definitive way, because right now the added value can be seen, but it needs to be more
precise. After all this would help to see clearly the benefits

Quality Management
Effects of Quality Management on Domestic and Global Competition Paper
Effects of Quality Management on Domestic and Global Competition Paper
Quality Management within any organization is important because it will guide the organization to
success. The goal that the organization is looking to accomplish will heavily depend on what quality
of service is offered to the customers. Managers, who provide quality service will increase the level
of satisfaction to the customers. Businesses aim to provide the highest level of quality service and
products to their customers. In this paper the student will compare and contrast two organizations,
one in global market and one in the domestic market. The use of quality ... Show more content on
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Lufthansa Airlines also has a long –term strategic plan for the success of their airline; this airline is
always developing techniques for effective communication to ensure that their employees apply
total quality to their work. This airline strives to ensure long–term competitiveness in the global
market. A successful strategy for developing markets and sales activities relies strongly on the
strategic orientation of an airport as well as the relevant market and customer needs. That is why
Lufthansa services are always based on a thorough assessment of their markets, customer base,
potential, and existing processes (Lufthansa, 2011) 1. Distribution Channel management –Secure
and increase airline revenue and reduce cost 2. Airline– e commerce strategy– using the Internet as a
strong platform for information and sales. 3. Airline revenue management and pricing policy–
Marketing and sales 4. The sales/distribution strategy and planning– this includes assessment,
identification, improvement, and implementation. Competiveness in the global and domestic market
The approach for long–term success in the global and domestic market assists both companies in
increasing new and innovative plans. These plans should meet the requirements of the customers
and the industry in, which they serve. Both airlines have affective strategies in meeting their long–
term goals through

Sample Resume : Air India
Air India Simarjeet Singh
Pankil Shah
Leroy Rodrigues
(1000035608)
Date: 20/06/2016
Course: Graduate Diploma in Applied Management
Lecturer: Say Chong Lim– Applied Management
Introduction:
Air India is the national airline of India and also one of the biggest air company of the country in
terms of passengers carried. It was started by Jehangir Ratanji Dadabhoy Tata in 1932 and was
called Tata Airlines at that time. It started off carrying passengers and air mail between Bombay,
Karachi, Ahmedabad, Bellary, and Madras. After World War II it became a public company and was
christened 'Air India'. Today Air India has a fleet size of around 108 aircrafts and flies to 84
destinations worldwide. It is mainly operated from Indira Gandhi international Airport, Delhi and
Chhatrapati Shivaji International Airport, Mumbai. As of February 2016, Air India has a strength of
28,085 employees. In 2007 the airline was merged with the state owned Indian Airlines, thus
forming a new company called National Aviation Company of India. In 2014 Air India entered the
Star Alliance, thus becoming the 27th member of the globes largest airline alliance.
Problems Identified:
Since its inception Air India has faced too many problems and was always caught up in
controversies. Financial troubles never seem to end for the company. The biggest problem with the
company is that it is going through a financial crisis for the last few years. In 2006, Air India made a
loss of Rs 541 crore and Indian

Competing Through Alliances in the Airline Industry: the...
–––––––––––––––––––––––––––––––––––––––––––––––––
Competing through alliances in the airline industry: The AIR FRANCE– KLM/DELTAAIR LINES
JOINT VENTURE
In less than twenty years, the global industry has gone through tremendous change. Several airlines
had gone out of business that had been on top of the industry for years. One of the remarkable
changes had been airline alliances. The case focuses on the airline industry and how airlines are
forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and
Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a
founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines
formed revenue ... Show more content on Helpwriting.net ...
These are all things that have to be considered.
Some of the alternatives both airlines can use is understanding each airlines' knowledge and skill
base. They can also balance collaboration and competition with the alliance, and maintain loyalty
among their airlines. Trust is essential to their relationships. There has to be a clear understanding of
how funds will be disbursed and how each company can go about individual pursuits and how it
affects the other. The idea of joint ventures are to gain a competitive advantage over others. Each
company benefits in joint ventures because they get to expand their market by gaining new routes,
and they share revenues and costs. According to Appendix 3: Air France/KLM Income Statement,
from 2006–2011 revenues increased from 21,452 million Euros in 2006 to 23,622 million Euros in
2011, with a decrease from 2008–2010. Appendix 4 shows Air France/KLM Key Ratios. There is a
pattern of deceases from 2008–2010 which is evident through its profitability ratios. According to
Appendix 6: Delta Air Lines Income Statements, there was significant growth from 2006–2011 with
an operating income of 17,532 million USD in 2006 and 31,755 million USD in 2011, with a
significant decrease from 2006–2007. It's also true that their customers enjoy benefits such as a
more varied choice of destinations with more frequencies and adapted schedules, frequent flyer
programs and competitive fares. The

Qantas and Emirates: Strategic Alliance Analysis Essay
The strategic alliance between Qantas and Emirates was a result of a careful analysis of the airline
industry and its involving competitors.
Emirates CEO, Tim Clark specified that he has been closely monitoring Qantas until he saw an
opportunity for both companies through a strategic alliance, mentioning that Qantas had a problem
with its international segment where Emirates could help with (Joyce, 2013). The 5 year strategic
alliance does not restrict to code–sharing as it includes collaboration on scheduling, pricing and
sales while taking equity in each other company is out of the question, mostly because of the uneven
powers between organisations (World News Australia, 2013). Since 2011, Qantas started to
restructure its marketing and ... Show more content on Helpwriting.net ...
Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the
rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater
certainty for the shareholders while also being able to increase its numbers in international routes to
33 one–stop destinations in Europe in addition to 31 one–stop destinations in the Middle East and
North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while
Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore,
from 31st of March Qantas frequent flier point users were able to book Emirates flights while the
customers' high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian
and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus
Travel, 2013).
Combined, Qantas along Emirates offer 98 weekly routes between Dubai and Australia. This deal
improved Qantas' profit before tax with an increase of 80/90 million A$ in 2012/2013 while
projecting an increase of around 400 million A$ in the financial year 2013/2014 according to an
analyst at Macquarie (Joyce, 2013). This alliance surpassed the existing partnership – Etihad
Airways/Virgin Australia which covers only 30 European routes (Varley, 2013). Ultimately, the
alliance helped divert capital resources from Europe to

The Impacts of September 11, 2001 on the Aviation...
Abstract This paper discusses the impacts of the September 11, 2001 terrorist attacks on the aviation
industry. Specifically, how aviation industry members were forced to alter their marketing mix in
response to the events. The four "P 's" of marketing were all modified. The airlines had to change
their product (route structures) and their prices. They also had to change their promotion tactics to
ease the customer 's "fear factor". Lastly they had to alter the means of delivering their product to
the consumer due to enhance security measures (place). September 11, 2001 will always be
considered a turning point in the history of America. The events of 11 September 2001 were unlike
any other shock experienced in the history of ... Show more content on Helpwriting.net ...
Cooperation within alliances poses several challenges to managers: the size of the alliance, the need
to intensify cooperation and the harmonization and standardization of common processes, and the
search for synergies to reduce costs. However, in times of crisis, alliances do not necessarily prevent
stiff competition between the partners. At present, five alliances – One World, Star, Wings, Sky
Team and Qualiflyer stand out as the core groupings around which other airlines with strong
regional networks will come together to form worldwide networks and can be described as global
alliances. But they remain fragile creations subject to competing attractions and economic forces.
Over the years, several companies have switched from one alliance to another. Austrian Airlines, for
example, moved from the Qualiflyer to the Star alliance. Air France has recently floated the idea of
creating a Mediterranean alliance with Alitalia and Iberia. To make this three–way deal possible,
Iberia would have to leave the OneWorld alliance. Airlines took the various short–term measures
that have been described above, but few changed their long term strategies. The network carriers did
cut out some unprofitable routes, and reduced frequencies on others. The 11 September

Analysis Of Qantas & Collaborative Strategy
TOPIC 1:
QANTAS & COLLABORATIVE STRATEGY
In today's highly competitive business environment, companies must continually seek out initiatives
that will bring about competitive advantage, which occurs when a firm implements a strategy that is
costly or impossible for their competitors to duplicate (HANSON HITT IRELAND HOSKISSON
TB). An approach that has been rising in popularity for resource based firms in the past two decades
(KALE SINGH) is cooperative strategy, whereby two or more firms work together to achieve the
aforementioned competitive advantage.
Capabilities of a firm are created through tangible and intangible resources and allow them to
perform everyday tasks. These capabilities become core competencies when they develop into a ...
This allows them to capitalise on the core competencies of other firms, resulting in competitive
advantage if successful. The major benefits of strategic alliances rather than acting independently
include a new source of revenue, a vehicle for firm growth, faster responses to market opportunities,
technological changes and global conditions, and grants experiences to draw new knowledge from.
In the aviation industry, strategic alliances come in the form of bilateral or multilateral agreements
where allied airlines share similar business objectives and coordinate their services to achieve their
common goals. According to Doganis (2006), they involve use of a common brand, a uniform
service standard, and the asset co–mingling of aircraft, staff, traffic rights, terminal facilities or
capital resources to identify the airlines that are in a strategic alliance. Global airline alliances also
exist in the aviation industry. Alliance, OneWorld, and SkyTeam were launched between 1997 and
2001, and each contain a dozen or more members. Figure 1 displays the differing levels of
coordination between partners in the various partnership types.
An example in aviation industry that has successfully employed a strategic alliance is Qantas
Airlines, who entered into a non–equity strategic alliance with the large Middle–Eastern airline
Emirates. Strategic alliances are evident

Outsourcing Repairs On Major Aircraft Components
Outsourcing Repairs on Major Aircraft Components: The Financial and Time Saving Benefits.
Executive Summary
For decades airlines have turned to third party Maintenance Repair and Overhaul (MRO) facilities
and contractors to take on the tasks of performing maintenance on their fleet of aircraft 's. But over
the past few years, airline companies have been relying on these facilities more and more due to the
supply and demand of air travel. Third party MRO's provide a service of outsourced labor to
perform maintenance on the aircraft's, which allows airline companies to focus on other things.
These MRO facilities specialize in a vast amount of maintenance, from basic line maintenance
checks, all the way to nose–to–tail ... Show more content on Helpwriting.net ...
Sacrificing an aircraft to be out of commission for a couple weeks is more cost effective than having
to perform lengthy maintenance procedures such as engine overhauls and phase maintenance by our
crew. Third party companies such as Lockheed Martin, Northrop Grumman, and even Rolls Royce
are used to do certain types of maintenance and troubleshoot problems for airline companies. A 1997
General Accounting Office (GAO) report estimated that one–half of the maintenance performed by
United States airlines is actually outsourced to repair stations, creating an extremely competitive
environment within the third party aviation maintenance industry (FAA, 2003.) Not only does
outsourcing maintenance save money in the short term, it also saves money in the long–term.
Many third party organizations are providing long–term service contracts with airlines so that they
can feel secure and know that the cost for parts and labor will not fluctuate throughout the years.
This is why many airlines have created alliances and service agreements with many Original
Equipment Manufacturer (OEM) and third party Maintenance Repair and Overhaul (MRO) stations
to perform their maintenance and servicing. Another benefit of outsourcing is that it allows the
airlines to cut back permanent maintenance personnel. This saves them money by reducing paid out
salaries for long–term workers. As head of the Maintenance department with

Kenya Airways
KENYAAIRWAYS the pride of Africa.
Strategic information management
Table of contents:
I. Introduction
II. Mission and vision statements
III. Performance of Kenya airways
IV. Porters five forces of competitive advantage
V. Nature of the airline market in relation to the five forces
VI. A swot analysis for KQ
VII. Recommendations
VIII. References
INTRODUCTION
Kenya Airways Limited commonly known as Kenya Airways is Kenya's flag carrier and largest
airline and is engaged in the operation of both international and domestic air services including
carrying passengers, freight and mail as well as providing ancillary services. Their headquarters is in
Embakasi, Nairobi while its main base is at the Jomo Kenyatta ... Show more content on
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Health
PERFORMANCE OF KENYAAIRWAYS
Over the years KQ has continually improved its performance.
KShs(Mil). 2011 2010 Var. Var. %
Turnover 85,836 70,743 15,093 21.3
Direct operating costs 53,419 (44,376) (9,043) (20.4)
Fleet ownership costs 9,622 (9,102) (520) (5.7)
Gross profit 22,794 17,265 5,529 32.0

Overheads 16,980 (15,426) (1,554) (10.1)
Operating profit 5,815 1,839 3,976 216.2
Operating margin % 6.8% 2.6% 4.2%
Net Finance Revenue/Cost (951) (1,614) 663 41.1
Precision Air (loss)/Profit (188) 77 (266) (343.9)
Realised gain/(losses) on fuel derivatives 298 (3,771) 4,069 107.9
Fair value gains on fuel derivatives 30 6,140 (6,110) (99.5)
Profit before tax 5,002 2,671 2,331 87.3
Taxation (1,464 ) (636) (828) (130.1)
Profit after tax 3,538 2,035

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,

Strategic Alliances Of Airlines : Economic Benefits For...
4. Strategic Alliances of Airlines – Economic Benefits for Consumers and Airlines Companies
In today's extremely competitive market environment, it's almost close to impossible to without
partners and this seems to have become a dominant feature in the airlines industry. Alliances are an
immediate result of globalization, increased competition among the airline companies and most
importantly due to customers increasingly demanding 'from anywhere to anywhere' service which is
almost impossible for any airline to supply efficiently. As a result of which, airline companies across
the world unite their various resources by entering into strategic airline alliances. Alliances enable
and promote co–operation of commercial and operational ... Show more content on Helpwriting.net
...
Since, the offering is enormous and price can be altered accordingly
Airline companies co–operate with their alliance partners through code sharing, franchises, block
space agreements and frequent flyer programs to reach out to their global customers
4.2 Airline Alliances – What's in store for the Customers?
Meeting the demands of consumers for network scope and depth can involve airlines in differing
degrees of cooperation. The chart below was taken from a recent European Commission and US
DOT (2010) report and illustrates the vast spectrum of airline co–operation, varying from traditional
interlining to joint ventures.
Provide customers with a seamless travel experience with very low risks of missing connecting
flights and losing baggage. Arrangements between airlines with Code–sharing offer passenger much
better connections than traditional interlining. In addition to that, flexible FFP programs make it
possible to passengers to earn miles on one airline and use it on another. But the most vital benefit
from the customer's point of view is the fact that due to the alliances broad network, passengers now
have a very good choice of service to almost any destination

Marketing Strategy of Ethiad Airways
Table of Contents 1.0 Introduction 3 2.0 External Environment Analysis 3 2.1 Porter's Five Forces
Analysis 3 2.2 SWOT Analysis 5 3.0 Marketing Strategy Analysis 6 3.1 Segmentation, Targeting
and Positioning 6 3.1.1 Segmentation 6 3.1.2 Targeting 6 3.1.3 Positioning 7 4.0 Strategic Alliances
8 5.0 Sponsorship 9 6.0 Contribution to the Competitive Advantage and its Sustainability 10 6.1
Segmentation, Targeting and Positioning 10 6.2 Strategic Alliances and Sponsorship 10 7.0
Conclusion 11 8.0 References 12 Word Count: 3282
1.0 Introduction
Etihad Airways, the national airline of the United Arab Emirates, has in just eight years established
itself as the world's leading airline. Set up by ... Show more content on Helpwriting.net ...
The brand loyalty is another very important barrier to entry. When choosing the airlines, customers,
especially "the high profile" ones, are being very careful about health and safety, comfort and other
details, therefore tend to choose companies with the brand they trust. Overall, the threat of new
entrants is low, because there is a number of very hard to overcome barriers to entry, and if the small
company appears on the market, it tends to be absorbed by one of the major players in the industry.
* Threat of substitutes – low
Airlines industry – being an important sector of travel and tourism industry will have such potential
substitutes as the sea, railway and road types of transportation. However, as Etihad is operating in an
upper–class prices level, the threat of substitutes would be fairly low. In terms of potential business
travellers, the time would be more important than money for them. In terms of leisure tourists, the
prices may matter, however, cruise ships' tickets tend to be more expensive than the planes' ones.
Therefore, if the experience of cruising is not extremely important for the customers, they would
prefer travelling by air.
2.2 SWOT Analysis
After looking at the overall external environment, it is important to evaluate Etihad's main strengths
and weaknesses, suggesting what opportunities and threats

The Business Model Of Emirates: Airline Business Model
Business Model of Emirates:
Emirates business model is based on the following premises:
Labour cost economies: Emirates has a lean workforce and young fleet. This accounts for its
extraordinary low cost and a strong cost–based competitive profile. The lean workforce further
triggers and makes Emirates a leading low cost "no frills" airlines when compared to its competitors.
Another reason which allows the airline to minimise overheads is its simple organizational structure.
Government blithe support: The Emirates Airline business model is one that is independent and
self–sustainable. The airline doesn't gain from reduced fuel rates or other monetary support from the
government of Dubai. However the government offers remarkable support ... Show more content on
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This is mainly because new companies propose more attractive product with low cost. In airline
industry these threats are comparatively low as barriers are high. Some challenges that new entrants
face are, Capital requirements and brand name & loyalty. It seems, to all appearances, that the
airline industry is a low entry barrier industry. Finance, the prime entry barriers, is readily available
in the Middle East and technology and expertise are purchasable. Power of Suppliers: Suppliers can
easily change market trend through their high demand and control on prices and quality of their
products & services. Boeing and Airbus are globally suppliers of the airline industry. Also, the
likelihood of a supplier integrating vertically isn't very likely.
Power of Buyers: Buyers are also can change the industry trend due to their demands for high
quality, demand for low prices and also have skill I reduction of the cost.
The bargaining power of airline industry buyers in the Middle East is quite low. Buyers are more
powerful due to huge amount of passengers in market and approximately 1.8 billion

Strategic Alliance Vs. Acquisition M & AAnd Organic Growth
STRATEGIC ALLIANCE: A strategic alliance is an agreement between two or more parties to
pursue a set of agreed upon objectives needed while remaining independent organizations. This
form of cooperation lies between Mergers & Acquisition M&A and organic growth. Partners may
provide the strategic alliance with resources such as products, distribution channels, manufacturing
capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The
alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the
benefits from the alliance will be greater than those from individual efforts. The alliance often
involves technology transfer (access to knowledge and expertise), economic specialization, shared
expenses and shared risk. INtRODUCTION: Nowadays, the commercial competition has surpassed
the limits of the previous era in which dominant markets are protecting their set market shares.
Mega commercial activity back then was completely regulated by the government. The United
States has privatized a lot of sectors related to energy, telecommunication, and transportation
sectors. In response, the USA introduced the deregulations in the aviation industry to increase the
competition in the aviation market. In the past few years, the commercial air carriers have formed
strategic alliances with each other which were not possible before this due to the previous
regulations. The main reasons for the creation of these

Is Council Directive 2000 / 78 / Ec
Is Council Directive 2000/78/EC (1 ) to be interpreted as meaning that the prohibition on all forms
of discrimination on grounds of age precludes national rules from upholding a collective agreement
between an airline company and the trade organisation representing that company's pilots which
provides for compulsory retirement at 60 years of age, when that agreement provision, which
applied also before the entry into force of the Council Directive and before the entry into force of
the national implementing legislation, has as its purpose the protection of aviation safety on the
basis of a general consideration of reduced performance ability with age, without a specific
assessment of the individual pilot's performance ability, but such ... Show more content on
Helpwriting.net ...
Stakeholders such as air navigation service providers, airspace users, airports, manufacturing
industry and professional staff representative bodies should have the possibility to advise the
Commission on technical aspects of the implementation of the single European sky. The European
air traffic control equipment industry is working in a "niche" market, in which there are hardly any
off–the–shelf product lines, given that each control system installed is specific to local
constraints.Not only is the NLH not paid for what it does, but the funding which it disburses in line
with its aim to facilitate the operation of airline pilot education in the north of Norway is more akin
to the social objectives identified by the EFTA Court in the Private Barnehagers case, when it held
that the Norwegian State was not seeking to engage in gainful activity but was fulfilling its duties
towards its own population in the social, cultural and educational fields (24 ). In the air transport
sector, in 2003 the Commission decided to launch a comprehensive and non–case–related dialogue
with all the industry stakeholders, in order to prepare transparent guidelines on competition
enforcement issues in the field of airline alliances and mergers With regard to the processing of
sensitive data, even if these data might be filtered out

Air Canada's Business Case Study
Air Canada maintains several defined benefit pension plans, including domestic registered pension
plans, supplemental pension plans and international pension plans. Air Canada's pension funding
obligations may vary significantly based on a wide variety of factors. Any changes to these factors
may result in an increase in Air Canada's obligations. Besides, deteriorating economic conditions or
a prolonged period of low or decreasing interest rates may result in significant increases in Air
Canada's funding obligations, which could result in a huge adverse effect on Air Canada`s business.
Underfunded pension plans, failure or inability by Air Canada to make required cash contributions
to its registered pension plans will harm Air Canada`s ... Show more content on Helpwriting.net ...
In section 9.8, MD&A provides more detailed information on above mentioned issue.
Current legal proceedings
Air Canada is involved in or may be subject to legal proceedings which could negatively impact the
company`s operations. Recently, Air Canada was involved in investigations by competition
authorities relating to Air Canada Cargo division and mandatory retirement issues. MD&A explains
the details of the court proceedings.
External risks
Fuel cost, airport user and air navigation fees, foreign exchange, Aeroplan, Star Alliance, key
suppliers, regional carriers, economic and geopolitical conditions, competition.
Fuel cost
Cost of fuel is also one of Air Canada's largest operation costs items. Fuel prices have and may
continue to fluctuate widely depending on many factors and, therefore Air Canada cannot accurately
predict fuel prices. Due to the competitive nature of the airline industry, Air Canada may not be able
to pass an increase in fuel prices to its customers by increasing its fares. In addition, Air Canada may
be unable to appropriately or sufficiently hedge the risks associated with fluctuations in fuel prices.
Furthermore, the impact of lower jet fuel prices could be offset by increased price competition,
resulting in decreased revenues. Significant fluctuations in fuel prices could have a potential
negative effect on Air Canada.
Foreign

Discuss the nature and strategic relevance of the Air...
AIR FRANCE – KLM: RULING THE SKIES
Discuss the nature and strategic relevance of the Air France–KLM merger.
Should Air France–KLM create new partnerships or acquisitions?
On 5 May 2004, despite great opposition of industry experts the French airline Société Air France
(Air France) and the Dutch Koninklijke Luchtvaart Maatschappij N.V. (KLM) created the world's
largest airline group by turnover named Air France–KLM. The merger represented the first
consolidation of two national flag carriers in the aviation history, where alliances were a traditional
way of co–operating. This essay will concentrate on discussing the nature and strategic relevance of
Air France–KLM merger by analysing the relevant relational actors in their industry ... Show more
content on Helpwriting.net ...
The merger arguably had a positive impact on the whole Skyteam alliance as it strengthened their
competitive position through KLM as well as its former alliance of Continental Airlines.
In terms of indirect vertical relations perhaps the biggest advantage of the merger was achieving
economies of scale and being able to offer more competitive prices to compete with the potential
less expensive means of transportation and shipment of cargo.
In addition to the classical relational actors some of the condition setting parties in the broader
environment also held significant importance in strategic relevance of the Air France–KLM merger.
The contextual actors can be identified by employing the classic SEPTember distinction, consisting
of socio–cultural actors, economic actors, political actors and technological actors.
Socio–cultural actors played a significant part in the Air France–KLM merger. Firstly, the industry
experts' view was that the downsides of the merger such as reconciliation of the two different
corporate cultures (the French and the Dutch) would outweigh the upside. This was heavily
publicised in the media which resulted in stock prices dropping 7.4% in the week of the
announcement. Consequently the CEOs of the two airlines had to work tirelessly trying to convince
analysts, stockholders and public

Airline Industry And Competitive Environment
Introduction:
A major restructuring has been taken by the Qantas in 2013. On 31st March 2013 it was seen that
two Airbus 380 flights flew over Sydney Harbour in order to mark the alliance between the Emirates
and Qantas. It is known that Qantas is an Australian icon and it has been present in the country since
1920s. Qantas is the flag carrier airline which nicknamed as "The Flying kangaroo". The airline is
based in Sydney and it has a market share of 65% in the domestic market of Australia. It carries
nearly 18.7% of all the passengers travelling inward and outwards from Australia (Australian
Business Traveller, 2012). Qantas play a big role in tourism market and economic growth in
populations seeking to travel.
Industry and competitive ... Show more content on Helpwriting.net ...
Rivalry cause Qantas to lose millions of dollars in many different forms, for instant cost of
advertising campaigns, invention of new product, cutting of discount and services perfection (Porter
(2007, p. 8)
Internal environment strategy
In recent years Qantas is going through a significant transformation plan. It is known that in present
scenario the global market is changing significantly and thus it has been critical for various business
units to understand the need of change in present organisational structure (Centreforaviation.com,
2014). There are various strategies that need to be implemented by a business unit in order to be
competent in the industry. It was evident that the global forces had imposed various challenges for
Qantas and as the prices of oil increased significantly, it also affected the Australian dollars. A
profound impact of globalisation was seen on Qantas' competitive situation and thus they had to
implement various strategies in order to restore the competitive position of the organisation (Freed,
2014).
Thus Qantas took the initiative to turn a loss making company into one of the global aviation
company of the world with a tremendous competitive advantage by doing a strategic alliance with
the Emirates (Gazzar, 2014). Qantas has taken various strategies to make sure that they remain cost–
effective in the market in long–run and in 2011 they announced a five–year transformation

The International Civil Aviation Organization
1. Introduction A conference was initiated by the US President Franklin D. Roosevelt in 1944, in
which all the allied powers as well as some neutral governments convened at Chicago to discuss the
future of civil aviation. The expectations from this conference, which came to be known as the
Chicago Convention, were high even though the timing of the convention wasn't perfect. The
Chicago Convention proposed the formation of the International Civil Aviation Organisation
(ICAO), which later became a part of the UN in 1947. The ICAO contains universal rules covering
airspace sovereignty, aircraft registration and airworthiness, and global Standards and
Recommended Practices (SARPs) for technical and safety harmonization records of the national ...
Fifty–four countries attended the Chicago conference and although it did not quite achieve all of its
goals, it did provide the groundwork for the founding of the ICAO in 1947. The Soviet Union was
invited to the conference but did not attend. Many of the countries which the Allies were at war –
Germany, Japan, Austria, Hungary, Romania, Bulgaria, Italy and Finland – were not invited and
were not represented but it was the absence of the USSR which was mainly felt as the USSR
represented the largest land territory of the world and were expected to play an important role in
after–war arrangements. This negative attitude of the USSR was perhaps a sign of the "cold–war"
mistrust and isolation and that the secretive USSR was not ready to open its air space to
international cooperation. The official reason given for the non–participation though was that among
the nations taking part in the conference, there were some countries like Switzerland, Spain, and
Portugal which for a number of years have carried on a hostile policy towards the Soviet Union. 3.
Outcomes of the Convention The atmosphere of the conference was one of uncertainty and some
anxiety, which was felt by all delegations towards the attempts of the US to impose its

Airline Industry Analysis Paper
Airline industry analysis
The airline industry is a typical capital–intensive, technology–intensive, experience–intensive and
labor–intensive with a high–value industry, due to the characteristic of high additional value and the
huge industrial linkage effect, it prompts every country all over the world support its airline industry
to reach sustainability.(Lei, 2014)
The biggest airplane manufacturer company in America, Boeing Company current market
outlook(2016–2035) predicts that in the next twenty years the GDP growth rate will up to
approximately 2.9%, the Revenue Passenger–Kilometers(RPKs) will up to 4.8%, and Freight
Tonne–Kilometers (FTKs) will grow faster than the others two that will up to 5.9%, the Airbus
company global market forecast ... Show more content on Helpwriting.net ...
But under the alliance, it may erode companies profit (Tang &Tseng, 2010). Some scholars have
argued against participating in the strategic alliance because it might bring the negative impact, hold
that opinions, for instance, it is beneficial for airlines to ally with others companies, but it will harm
for customer because they couldn't use the facilities in airplane which is not enroll in the
membership of airline alliance. (Kuzminykh and Zufan.2014)
Parkhe(1993) also believes that once join the alliance may lead to the airline companies become
instability, poor performance, and premature dissolution, furthermore, strategic alliance will also
bring about a high financial cost that it could lead to a bankrupt to the airline companies. (Morrish&
Hamilton,

Alliances in the Airline Industry Essay
Executive Summary
Throughout the years there has been an increase in strategic alliance formation in order to combat a
number of factors creating uncertainty in the market and to share knowledge and know–how. The
formation of alliances has also occurred in the Airline industry; this report discussed how these
alliances gain economies of scales and synergies. The deregulation of the airline industry has open
doors to more competition sand to further agreements such as the "open skies", these agreements
allows airlines to serve consumers more efficiently by offering extensive domestic, continental and
intercontinental service networks.
Through the formation of alliances, airlines have created economies of scale through extensive use
of a ... Show more content on Helpwriting.net ...
'Open skies' opened possibilities for airlines to serve consumers more efficiently by offering
extensive domestic, continental and intercontinental service networks. Deregulation has made
positive changes in the airline industry by expanding a network of services where a consumer can
choose a variety of desired destinations with just one airline. Increased traffic feed between partners
has helped to effectively utilize seat capacity and increase flight frequency. Alliance partners
reduced operational and ticket costs by taking advantages from economies of scale and scope.
Improved service quality was achieved through more coordinated time schedules and increased
itinerary choices for passengers (Bennett, 1997).
Deregulation Effects
On Safety
Safety is the most important aspect of product quality for the consumer and unlike with other simply
distinguishable products a flight safety is very difficult to observe or evaluate. In order to rectify the
issue Federal Aviation Administration (FAA) substantially tightened safety requirements from a very
beginning of deregulation. FAA has tightened requirements for pilot qualifications, crew training
and increased maintenance requirements for large commuter aircrafts. All the safety precautions had
a positive impact reducing more then half of accidents. Aircraft manufacturers purchased a complete
accident indemnity before the actual

Air China Swot Analysis Essay
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1463–
5771.htm
BIJ 13,1/2
SWOT analysis for Air China performance and its experience with quality
A.M. Ahmed
The European Centre for Total Quality Management, University of Bradford School of
Management, Bradford, UK
160
M. Zairi e–TQM College, Dubai, UAE, and
K.S. Almarri
The European Centre for Total Quality Management, University of Bradford School of
Management, Bradford, UK
Abstract
Purpose – To report on the lessons learned during the implementation of TQM principles in Air
China as a response to the dramatic changes in both international and domestic markets.
Design/methodology/approach – This research work is based on ... Show more content on
Helpwriting.net ...
Airlines introduced railway–style, uniformed stewards and restaurant–style tables adorned with
vases of flowers and silver cutlery. In 1928, Pan Am became the first US airline to employ cabin
attendants to serve meals. Also in 1928, Western Airlines (eventually absorbed in Delta Airlines)
served meals brought to their aeroplanes, by Cadillac, from a restaurant near Los Angeles Airport. In
1929, Pan Am introduced in–flight movies on its flights between Miami and Havana (Dana, 1999).
In 1930, United Air Lines introduced the world's first stewardess. Ellen Church was the first woman
to serve a meal on an aeroplane. Pan Am preferred to employ stewards who had served as
professional waiters or pursers on ships. In 1934, Pan Am inaugurated the S–42 on its route from
Miami to Buenos Aires. The airline set a precedent by installing facilities for heating food in–flight
on long over–water journeys. Stewards would take orders from passengers and radio ahead for
meals, which were served to passengers in a special dining area of the aeroplane (Dana, 1999).
Dinner in flight became a formal affair, often in tuxedos and evening gowns. Passengers enjoyed a
feast, cooked aboard the aeroplane, and served on linen–covered tables in a fine dining salon set

with china, crystal and fresh ﬂowers. During the 1940s and 1950s, passengers on the Boeing 377
Stratocruiser could get staterooms with private washstands, berths, divans,

Case Study Of Star Alliance
Executive summary
Since the 1990s the alliances in the airline industries is common and there are three major airline
alliances which are present in the world are OneWorld, SkyTeam and Star Alliance. These alliances
of airlines have covered almost two third of world air traffic industry and the major contribution in
this is Star Alliance. The strategic alliances on the part of the airlines are done because of many
advantages which not only organizations reap but also the other stakeholders which are involved in
this type of alliances. This research paper is evaluation of why the strategic alliances are important
and why the organizations go into the strategic alliances the case study of star alliance was taken as
the reference and the circumstances ... Show more content on Helpwriting.net ...
Learning, specialization and fix cost distribution can spread over larger output with economies of
scales (Albers, Koch and Ruff, 2005). Three strategies were opted as motivation by the airlines to
create an alliance (i) mergers and acquisitions, (ii) setting up low–cost carriers and (iii) air alliances.
Air alliance was considered as the most sustainable strategy by the Star airline. Through the
strategic alliance, the airline had an opportunity to expand and become large but at the same time
they can lower their cost by creating the competitive advantage that is why Start Alliance opted for
this option (Cojohari, 2015).
2.2 Marketing and Branding
Airline behavior could not be explained effectively with changing cost structure. In the bottom line
of any alliance marketing strategies and demand response are important. With Star Alliance, the
airline can offer their consumers large and denser global network of airlines with smooth
connections among airlines. Airlines have demands with competitive prices in Star Alliance due to
economies of scope, scale and density. In Star Alliance partners are able to offer better products and
services due to airlines increased capacity to retain and generate passengers (Cullen, Johnson and
Sakano, 2000).
2.3 Financial

Airline Alliance Advantages
Airline alliance can be defined as an agreement that consist of multiple independent airline to
partner up or collaborate in various streamline costs activities and expanding market penetration and
global reach (Hu, Caldentey, & Vulcano, 2013). Nowadays there is a lot of Airline Alliance in the
globe that serve in many different regions throughout the world with the purpose to expands each
existing airline in the alliance network by using the code–sharing, reciprocal agreements, frequent
flyers programme and many other more (Pitfield, 2007). Currently there are three main Airline
Alliance that consist of numerous number of airlines in each alliance. The Airline Alliance are
Skyteam, Oneworld, and Sky Alliances. As stated before each one of the alliance have the same
purpose which is code sharing, frequent flyers programme and many other more. The rise of the
airline alliances has given significant positive impacts towards the industry, passengers and the
airline itself. According to Pitfield (2007), the airline alliances give serious impact in term of
passenger traffic, market shares and concentration.
The rise of the airline alliance has given advantages and privileged to the airlines. Some of the
advantages of an airline that joined alliance, it will able the airline to use code sharing within the
alliance member itself. For example, the member of One World will cooperate with one another in
through extensive and even the frequent flyer programs (Fan, Langlois, Geissler,

Airline Alliances
Airline Alliances an Analysis
Introduction:
Liberalisation of the Airline Market now allows carriers to engage in alliances to form more
powerful synergy's and capture a larger share of the market. Since the introduction of The Airline
Deregulation Act in 1978 in North America and similar acts worldwide the aviation industry has
become one of the fastest growing industries. The main objective of this was to allow the market
place to influence the development of airlines. The main development from this was that airlines
find it more beneficial if they join alliances. In this report I will discuss why airlines engage in
alliances, identify the strategic benefits of alliances and assess their effectiveness.
Why airlines engage in ... Show more content on Helpwriting.net ...
By pooling resources alliances can reduce unit costs and achieve greater cost efficiencies through
more efficient utilisation of resources such as sharing landing slots, maintenance teams, IT systems
and labour. Airlines also have the opportunity of engaging in joint purchasing agreements and make
considerable savings. When we look at the Star Alliance which was founded in 1997 we see that
they have made considerable savings from joint purchasing agreements. Earlier this year The Star
Alliance leveraged its purchasing power with the procurement of new economy class seats. As well
as reducing the cost of seat ownership the airline will also benefit of reduced future fuel costs due to
the seats being made of lighter materials.
The demand side benefits of Strategic Alliances include accessing new markets through availing of
new landing slots. Landing slots are a big plus from strategic alliances. Currently Virgin Airways are
looking for landing slots at London's main airports to fly to destinations in Asia including
Bangalore. Through the potential prospect of joining the Alliance Sir Richard Branson hopes to
secure these slots. Alliances enable airlines to offer a more seamless network of flights to customers
due to their collaborative efforts. Alliances also have the option to use code sharing which enables
consumers to book space on the same flights through multiple airlines websites.
Effectiveness of alliances:
The

Lufthansa Case Study Essay
Lufthansa Case Study
Lufthansa Case Study I. External Analysis: Several large scale, interrelated conditions have affected
the airline industry over the past several years in such a manner that every carrier has had to respond
in order to remain viable and competitive. a. Environmental Analysis: The international war on
terror, with its attendant rising cost of oil has created havoc in a number of ways (Lufthansa Annual
Report, 2004). Rising costs have resulted from the increase in fuel prices. Customer check–in wait
times and flight time delays have resulted from new regulations designed to ensure passenger and
plane safety, including more rigorous bag searches, more extensive passenger screening, and the
like. This ... Show more content on Helpwriting.net ...
The very size of the company threatens to cause it ongoing trouble, as it must deal with problems
around the globe on an ongoing basis and must remain flexible with a behemoth corporate organism.
III. Strategic Intent and Mission: Lufthansa has restructured its operations to allow it to respond
quickly to problems areas and to control costs across the organization. It has also utilized its market
power to negotiate favorable contracts for products and service, including fuel. The company has
also withdrawn from unprofitable routes and simplified product and service offerings to cut costs.
Finally, it has capitalized on technology, by making flight check–ins and bookings available online
to make the customer service appropriate for demands (Moody's Investors Services, 2005). In order
to compete in the future, the company must find new ways to control costs without sacrificing
infrastructure or customer service. IV. Strategy Formulation: The effort to control costs will force
the company to focus on profitable routes and ruthlessly cut service to unprofitable areas going
forward. (The company has shown a willingness to take this sort of approach.) It will also force the
company to form strong alliances with other carriers that essentially protect its own territory by
providing alliance coverage of different markets. Company officials will have to

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