The parent company of American Airlines (AA) says it will cut around 15% of its workforce. American Airline which filed for bankruptcy protection‚ also wants to make changes to its staff pensions. The airline lost about $884m and more in the first nine months of 2011. AMR’s chief executive‚ Thomas W Horton said in a letter to his employees "We are going to use the restructuring process to make the necessary changes to meet our challenges head-on and capitalise fully on the solid foundation we’ve
Premium American Airlines Airline Southwest Airlines
The U.S. Airline Industry in 1995 2. a) American Airlines’ 1992 air fare strategies resembled its early to mid-80s SuperSavers program. It offered discounts of up to 45% on round-trip flights of at least 7 days‚ purchased 30 days in advance. Previously‚ air fare pricing was a simple structure of first class/coach and peak/off-peak categories. Robert Crandall‚ of American Airlines‚ introduced a new air fare system known as yield management. The simple price structure was unbundled to unleash multiple
Premium Pricing
Industry background/history The airline industry experienced growing revenues throughout the 1990s. At the turn of the new millennium‚ there was a drastic change to this trend. A major devastation to the airline industry came after the terrorist attacks on September 11‚ 2001. The industry recorded losses of $7.7 billion for the year and revenues went down 13.5% after a record $93.6 billion in 2000. The industry struggled throughout the following years. Recovery from losses was difficult in those
Premium American Airlines Airline Delta Air Lines
Strategic Analysis of the US Airline Industry in 2012 Case Questions 1. To what extent can the industry’s low profitability be attributed to the structure of the industry? 2. Which of Porter’s Five Forces has had the biggest impact in depressing industry profitability? Comparison of Airline Industry Structure (Regulation/Pre 1978 vs Deregulation/Post 1978) Oligopoly (Regulation) Perfect Competition (Deregulation) Concentration Few players Many players Entry & Exit Barriers Significant
Premium Monopoly Oligopoly Airline
QANTAS CASE ANALYSIS * Introduction Qantas or as it is nicknamed “The Flying Kangaroo” is the largest airline service that runs continuously and the second oldest in the world. It was established in 1920 as Queensland and Northern Territory Aerial Services Limited and first flew internationally in 1935 (Hanson‚ 2011). The growth of Qantas has been substantial with the most significant progression being the Australian government selling its domestic carrier Australian Airlines to Qantas in
Premium Airline Low-cost carrier Qantas
Derek Brown Professor Janet Smith Employment Law BA370 1 August 2011 BACHELDER V. AMERICAN WEST AIRLINES The legal issue in this case is Penny Bachelder claims her employer‚ America West Airlines‚ violated the Family and Medical Leave Act of 1993 ("FMLA" or "the Act") when it terminated her in 1996 for poor attendance. Bachelder countered that according to the regulations implementing the FMLA‚ she was entitled to have her leave eligibility calculated by the method most favorable to her. Under
Premium United States Law Employment
The case ‘Qantas Airlines: Twitter nosedive’ talks about troubles that the airline faced in the past years. Recently the company made a social media faux pas announcing a twitter contest omitting the bad situation the company is in at the moment. For the dissatisfied customers it was a great opportunity to express their opinion in public. The unsuccessful contest brought a lot of attention‚ but not in the way Qantas would wish for. The negative opinion was spread and so the public image of the company
Premium Airline Mass media Public relations
Leading Turkish Airline Manages All Agency Activities Thanks to New CRM System Pegasus initially began using Microsoft Dynamics CRM to manage the activities of sales representatives. Thanks to its strong infrastructure‚ the company quickly expanded the area of Microsoft Dynamics use in order to manage all agency relationships and respond to unscheduled charter flight requests coming from different channels. Business Needs Pegasus is expanding its operations with each passing day‚ while investing
Premium Microsoft Team
Thomas Line Advanced Managerial Finance IPO Paper Spirit Airlines This paper will be about an IPO that was filed by Spirit Airlines for $300 million dollars in September of 2010. According to www.marketwatch.com‚ Spirit Airlines is the first airline to go public in 3 years. The last airline to go public before Spirit was Gulfstream International group in December 2007. Spirit plans to use half or 150 million for cash reserves ‚ working capital‚ and other corporate purposes.
Premium Stock market Low-cost carrier Finance
Executive Summary Southwest Airlines has been a strong growth company over the last 35 years. Using its low-cost‚ passenger friendly‚ point-to-point operational strategy‚ Southwest has been able to sustain considerable growth year after year and remain profitable for 33 straight years. While Southwest has gained market share in recent years‚ legacy carriers have struggled due to depressed market conditions. The entire airline industry has endured expensive labor contracts‚ soaring energy costs and
Premium Southwest Airlines