Airline

in the 1970s and practised mainly within the airline industry, also known as airline yield management (Cross, Higbie, & Cross., 2009). Smith (1992) described revenue management as “selling the right seats to the right customers at the right price” (as cited in Schuessler, 2010). In the late 1980s, the hotel industry adopted this practice from the airline industry, with a similar objective to increase revenue. The implementation of RM by American Airline, which achieved an increment of US$1.4…

Southwest Airlines has been tailoring more toward the corporate customer. For example, Southwest now has business select and early bird check in. Both of these two perks have produced direct revenue for the company of about $295 million in 2013. (Bhaskar, 2014). The strategy for the company has helped make Southwest one of the biggest airlines. Southwest Airlines had a net income in 2013 of $754 million and total operating revenue were a record in 2013 of $17.7 billion. (Southwest Airlines Co.,…

Sun Country Airlines (SY) has a very unique marketing strategy for its niche, but its advertising has definitely proven effective. Sun Country has found its role in the airline industry, not as a legacy or a low-cost carrier, nor as a charter company (even though charters account for a large portion of their business), but as an airline in its own lane. This small hometown airline has weathered the storm through two bankruptcies, corrupt ownership, 9/11, and a recession or two. Sun Country is…

Since 2001, the airline industry has combatted several adverse marketing environments and has come out on top through strong marketing efforts. Subjects of interest in this article consist of competition, macroeconomic factors, and the natural environment. Competition in the airline industry was robust and consisted on a large number of corporations fighting for market share. Macroeconomic factors include the Great Recession that occurred in 2008-2009 which made consumers more budget conscious.…

American Airlines upgraded its reservation system, by developing an in house reservation system called Direct Connect. In making the upgrade, the company expected third-party travel operators (like Orbitz) to follow suit. • However, this new system would not rely on Global Distribution Systems (GDS), which middlemen like Orbitz used to conduct their business. So these third-party travel operators did not want to upgrade to this new system. • Due to this conflict amongst American Airlines and…

multitude of factors in the early 2000s brought about a decline in the financial performance of many airlines throughout the industry. Some of these factors include aspects such as the events of September 11th, stock market struggles, and the Severe Acute Respiratory Syndrome (SARS) virus, among others (Swelbar, 2009). An additional cause of such a decline was the rise of low-cost carriers, such as Spirit Airlines (Swelbar, 2009). Although their business model did not make them exempt from the…

Cathay Pacific Airline was founded in 1946, standing with their vision: To become the world’s best airline wouldn’t be achievable without the commitment of our people (Cathaypacific.com, 2015). Cathay Pacific Airline then named as Cathay Pacific Airways, and becomes one of the world’s leading airlines (Worldairlineawards.com, 2015). To maintain this position, the commitment of employees becomes to be the origin issue, where job satisfaction helps to determine the degree of commitment of…

trajectory even in 1990 when the political situation in the region deteriorated with the Iraqi and Kuwait conflict. Over the second decade, the airline expanded its network throughout the Middle East, Asia, Europe and Africa. As the 21st century was beginning though, Emirates remained relatively unknown in the global stage. However, as the global airline industry sought to adapt to the 9/11 reality in late 2001, Emirates sensationally announced a 15 billion order of wide-body aircrafts. Even…

American Airlines Value Pricing In 1992, the American Airlines (AA) was ranked as one of the biggest commercial carriers in the United States. The industry included advancements with inflight technology along with new and approved software application that pioneered the introduction of electronic airline advance booking systems. On the contrary, it may have exceeds technology expectations, the airlines and the industry as whole, was not able to meet or gain profit margins and meet customer’s…

Southwest Airlines Key Strategies Business Level strategy. Business level strategy is a process in which an organization focuses its core competencies on satisfying their customers, it details actions that should be taken to provide maximum value to the customers and gain competitive advantage over the firm’s competitors within an industry. Southwest Airlines employs a cost leadership business strategy which focuses on competing for a wide range of customers based on price of the goods or…