South Africa’s airline industry’s companies have been fighting to stay in the black over the past year‚ with SAA getting a R6bn recapitalization (which they claim is not a bail-out)‚ new entrants like Velvet Sky not lasting a full 12 months in the industry and established low cost carrier company Kulula.com’s parent company Comair slipping into the red for the year ended December 2011 (Comair declares six-month loss amid rising costs‚ (n.d)). I will be discussing the macro-environmental forces that
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none of the five largest air carriers in the US earned it cost of capital. Why do such low rates of return on investment persist in the airline industry? 2. Despite the challenging industry environment‚ airlines like Southwest Airlines and JetBlue earn enviable returns. How? 3. Why have all of the subsidiaries of legacy airlines‚ including Delta Express‚ failed? 4. What will happen to Delta Airlines if it continues to respond to low-cost airlines in the way it has in the past? Can you size up‚ roughly
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The Low Cost Airline: AirAsia A study of opportunities‚ challenges and critical success factors LGT 3007 Air Transport Logistics Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States‚ where it was pioneered in the 1970s by Southwest Airlines‚ the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional
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Kapitalbedarf: Durch die Möglichkeit des Flugzeugleasings oder -rentals ist der für Anfangsinvestitionen benötigte Kapitalbedarf verhältnismäßig gering [+] Reputation: Die Markenidentität und Käuferloyalität der im Markt befindlichen Legacycarrier und Low-Cost Carrier (LCC) behindern nicht den Eintritt neuer Konkurrenten [+] Regulierung: Nach der Deregulierung 1978 ist der Markt offen; die staatlichen Sicherheitsanforderungen sind nach 9/11 stark gestiegen [+] Vertriebszugänge: Durch die Nutzung des Internets
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Delta Airline Case 1- During the 1990’s‚ none of the five largest air carriers in the United States earned its cost of capital. Why do such low rates of return on investment persist in the airline industry? That’s correct‚ airline companies margins were below the average for US industries for a long time‚ especially after the 1978 deregulation. For 40 years‚ prior to 1978‚ the airline companies had operated under the regulation of the CAB (Civil Aeronautics Board)‚ which was responsible for
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Problem 5.16 – Delta Air Lines‚ Inc. Computing and Interpreting Risk and Bankruptcy Prediction Ratios for a Firm That Declared Bankruptcy. a. (1) Current Ratio: 2000: $3‚205/$5‚245 = 0.61 2001: $3‚567/$6‚403 = 0.56 2002: $3‚902/$6‚455 = 0.60 2003: $4‚550/$6‚157 = 0.74 2004: $3‚606/$5‚941 = 0.61 (2) Operating Cash Flow to Current Liabilities Ratio: 2001: $236/0.5($5‚245 + $6‚403) = 0.041 2002: $225/0.5($6‚403 + $6‚455) = 0.035 2003: $142/0.5($6‚455 + $6‚157) = 0.023 2004: $(1‚123)/0.5($6‚157 + $5
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Proceedings of the 13th Asia Pacific Management Conference‚ Melbourne‚ Australia‚ 2007‚ 431-436 Competitive Strategy for Low Cost Airlines Hongwei Jiang RMIT University‚ Australia Abstract The aim of this paper is to identify challenge faced to Low-Cost Carriers (LCCs) or Low-Cost Airlines and provide new insights into the development and competitive strategy for LCCs. LCCs are still a relatively new phenomenon in Australia since Virgin Blue and Jetstar came to the market. There are over 30 LCCs
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segmentation/ target market 3 Marketing Mix 4 Product 4 Prices 4 Place 5 Promotion 5 Suggestions 5 Conclusion 6 Referencing 6 Introduction Marketing is defined as the process which companies create value for customers and build strong customer relationships. (Kotler & Armstrong‚ 2010).Nowadays‚ the competition among airline industries is very challenging as more low-cost airlines were blooming. Besides that‚ they were also facing
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Survival Of Low Cost Airlines In India Do We Need New Strategies?? Introduction The liberalization of aviation industry in India has precipitated the boom for domestic & international passenger carriers. The domestic passengers & cargo traffic recorded a growth rate of 20% & 8.5%. The Airport Authority of India manages total 119 airports in the country which includes 7 international airports‚ 94 airports & 28 civil enclaves. The four airports are under PPP Greenfield airports i.e. Delhi
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Summary of External and Internal situation of Delta Air Lines Technological advancements‚ mergers and acquisitions‚ volatility in crude oil prices‚ currency depreciation‚ ground staff management and baggage handling are the major external factors for Delta Air Lines. The Monroe oil refinery purchased by Delta Air Lines provides an opportunity for the company to deal with the volatility in crude oil prices. Presently Delta Airline is over dependent on the North American markets‚ which
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