AirTran Airways

140 million dollars, 1.4 tons of cash. That is what Dr. David Gao received after being violently dragged off an overbooked United Airlines flight. With such a settlement, it seems that the company shows their sincere apology to the physically and mentally tortured passenger. However, if we look into this entire incident from an economics perspective, it is not hard to recognize that all the company did was to ensure it’s own benefit, and all the settlement and so-called “apology” is nothing but…

Company Overview: Southwest Airlines was founded by Rollin King and Herb Kelleher. The airline serviced Dallas, Houston and San Antonio which made a triangle. The airline started as Air Southwest Co in 1967 and then changed the name to Southwest Airlines Co. in 1971. The more dominant airlines at that time initiated a series of litigations against the airline in an attempt to prevent them from launching their first flight. The low-cost, no-reserved seats approach to air travel throughout the…

Club Med’s biggest opportunities come from its surprisingly powerful leverage that it carries over externals such as clients, countries, labour, vendors, and suppliers. This gives the company the ability to substantially reduce expenses and increase profits through the amount of substitutes that they have. Firstly, buyers (customers) who are looking for an all-inclusive vacation, look for packages that carry the highest value through experiences and fun activities. It is known through our travel…

In a world where fast delivery is expected, drone delivery is the new innovation for customer satisfaction. What is a drone? A drone is an unmanned aerial vehicle (UVA) equipped with a video camera, sensors, and GPS and operated by a joystick console or autonomously through computer technology (“What Are Drones?,” 2017). However, drones have been used by military forces since the 1960s for warfare (“What Are Drones?,” 2017). The drones allow military forces to locate and attack geographical…

As airlines prepare to report fourth quarter earnings next week, the industry is a position to report record profits. Even in a highly competitive industry, airlines have remained competitive thanks in large part to plunging oil prices. Recently, airlines made headlines when three of the largest U.S. airlines announced they would hike prices for the first time in 6 months. ChartEPS On Tuesday, Delta will be the first airline to report fourth quarter earnings. After impressing shareholders in…

Demand and Supply According to Mathews (2015), “Spirit relies on higher passenger volume to grow its revenues, which also brings in more revenue from ancillary services” (para 5). With Spirit Airlines, Inc. putting consumers in control of how they spend their money and allowing them to create the airline package that is most favorable to them is essential. If a couple is traveling for the away for a weekend getaway, and only needs one piece of baggage checked in, with major airlines, they…

1.0 Question 1 Singapore Airline (SIA) is a well-known airline for its excellent services and also the product quality they offer to the customer (Kossmann, 2006). Two theories will be used which are Drucker’s seven tasks of tomorrow’s manager and the cultural web in order to relate how SIA is a world class provider. 1.1 Drucker’s Seven Task Tomorrow’s Manager SIA targets to serve the best product for its passenger, plus the best customer service they can provide. Thus, to achieve their…

1.0 Before Singapore International Airlines (SIA) was implemented. It started off with the name Malayan Airways Limited (MAL), (MAL) started with 3 scheduled flights every week to Kuala Lumpur, Ipoh and Penang. After 5 years, more planes were bought to enable more flights to head out to many other different countries. (Singapore Airlines, 2014). In 1965 is when Singapore gained its independence from Malaysia, both countries decided to joint alliance and control the airline in 1966, renaming it…

In accordance to the case, there are several opportunities that can be justify. Among them are withdrawal of traditional companies from the less traffic intense point to the most traffic intense point routes using regional airports, industry growth in European air travel industry, being a fine choice of most of the market due to recession and also success in ancillary services may lead the company to new markets for joint ventures. Market sharing growth as Ryanair, targets of reaching a hundred…

PART A Crowair Plc is a low cost airline operating short routes serving UK regional airports and other airports across Europe. A low cost carrier (LCC) is a type of airline that provides air travel for a lesser fee and with less/fewer comfort (Wikipedia, low cost carrier).To make up for their lower fares the airline charges extra for food and services, baggage, priority seating etc.; this is otherwise known as the ancillary revenue which is an important financial element for a LCC. Crowair’s…