AirTran Airways

consistently has among the fewest customer complaints per passenger flown. (Bailey, Collins, Collins, & Lambert, 2009, pg. 540). Situation Analysis The Environment Airlines are on track to be profitable, expecting to lower operating costs and higher ticket prices. However, the September 11, 2001 terrorist attacks cast a long shadow on the global airline industry. Other pressures on the airline industry include: customer dissatisfaction, safety maintenance, debt servicing, air-traffic delays, mergers, and open skies agreement (allowing greater access to U.S. market by non U.S. carriers) The Industry Threats. Southwest has competition in low cost market, no longer a niche market for Southwest as there is now JetBlue, Spirit, Frontier, Public Airways and Allegiant Travel. Particularly JetBlue and ATA have modeled their operations on the original “Southwest model” (Box & Byus, 2009). Legacy carriers had become more efficient, the mega mergers involving Delta/Northwest and Continental/Unites were shaking up the industry, smaller companies like JetBlue and Allegiant were a problem for Southwest’s cost advantage and low-fare focus. Bargaining power for suppliers. Southwest would not easily be able to switch suppliers, and most likely wouldn’t try. The average cost to make one plane is $200,000,000. The high price to make an airplane is the reason there are few suppliers in the industry and airlines are the only source of income for these manufacturers so their business is…

currently responsible for over 75% of sales. (Southwest, 2015). Global Level Strategy Organizations that apply the global level strategy treat the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis. Given that the services an airline provides isn’t a something that can be imported or exported, it makes taking a look at the global strategy within this industry a little more complex than…

Despite their now smaller fleet complying with FAA standards, ValuJet lost $55 million in sales as consumers no longer wished to fly on an airline with a notorious reputation. After almost a year of lost sales and bad publicity, ValuJet merged with smaller airline Airways Corporation, which was purchased by AirTran in 1997 before being eventually purchased by Southwest Airlines in 2014. To remove all traces of ValuJet’s infamous past, the company retired the ValuJet name and brand identity and…

Malaysia has being ranked as a 5-Star airline among the most exclusive group of world airlines by the aviation rating organisation, SKYTRAX after MAS Airlines on par with Singapore Airlines and above Thai Airways and Air Asia. The organisation has ranked with just four other airlines in the world, fortunately, MAS airlines are one of it with their strong product and quality services. Malaysia Airline also fully owned 94 fleet of total of Boeing and Airbus that has constantly created and…

Countries With The Highest Number Of Fatal Plane Crashes Air travel is considered one of the safest traveling means in the world as, considering the traffic, fewer accidents occur as compared to road travel. However, aviation accidents do occur from time to time and is considered as the most fatal. Statistically, those who survive plane crushes are few. Plane crushes are taken seriously and always followed by vigorous investigations to mitigate future crashes. Worldwide, the top ten countries…

3:1 TurboProp Engines: A turboprop is a variation of a Jet Engine which has been optimised to drive a propeller instead of a Fan blade. Aircraft’s that are fitted with a TurboProp engine are very efficient at lower airspeeds, Burn less fuel per Nautical Mile an requirer shorter distances for take off and landings. Common among many small charter airlines and freight companies is the use of turboprop engines rather than turbine or turbofan engines mainly due to the reduced costs associated with…

INTRODUCTION AirAsia airline is one of the low-cost carrier in the part of ASEAN region. (Yashodha, 2012) Kuala Lumpur, Malaysia is the main headquartered for AirAsia airline. In addition, AirAsia provides the flight for the customer to 108 routes of the destination, 400 flights from the hubs that is Thailand, Indonesia and Malaysia. (Essays.pw, 2016) The name of the CEO of AirAsia airline is Tony Fernandes that work for the company since 2001. (TIME, 2014). In the following essay will…

AirAsia has two main customers which is the young, fair conscious customer and business travelers whom are looking for low airfares to travel to their destination, safely and comfortably. AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness…

The airline industry has grown modernization over the last few years. In the past, there were very few airlines operating across the world. Every airlines in the world need to have right leadership and strong management team to succeed in the air transport industry. To achieve objectives and mission, Top level management need to have the best strategy during setting overall goals and to assess whether the objectives are being met. They also need to acknowledge entire management team and…

An M-1 visa is an attractive option for individuals who want to partake in a vocational or nonacademic program. The most common M-1 recipient is someone who seeks to attend flight school in the U.S. Unlike the F-1 visa, M-1 visa holders cannot work while pursuing their studies. After graduation, opportunities to work are more limited than the F-1 visa and are only allowed 1 month per every 4 months of study. One of the most important distinctions between the F-1 and M-1 visa holders is that the…