Delta Airlines Essay
A BRIEF ANALYSIS OF SELECTED AIRLINE¡¯S PROSPECTS
Table of Contents:
1. Introduction 3
2. Trends and Strategies in the Airline Industry: a Brief Overview 3
3. Airline Profiles 5
3.1 Southwest Airlines 5
3.2 United Airlines 5
3.3 American Airlines 5
4. The Impact of Acquisitions and Mergers 6
4.1 United Airlines/USAir 6
4.2 American Airlines/Trans World Airlines 7
4.3 Southwest Airlines/ATA 7
5. The Impact of Bankruptcy Proceedings on Untied Airlines 8
6. Effect of United Airlines Chapter 11 Proceedings on Other Airlines 9
7. External Factors Affecting the Airline Industry 9
7.1 Effects of September 11 on the Airline Industry 9
7.2 Effects of the Iraq War on the Airline Industry 10
7.3 Effects of SARS on the Airline Industry 10 …show more content…
Conclusion 13
1. Introduction
This analysis focuses on the US airline industry and its companies¡¯ stocks during the last decade. Specifically, this analysis gives attention to two so-called legacy airlines which include UAL Corporation, holding company for United Air Lines, Inc. (¡°United Airlines¡±), AMR Corp., holding company of inter alia American Airlines, Inc. (¡°American Airlines¡±), and a low cost carrier, Southwest Airlines Co. ("Southwest Airlines"). These three airlines were chosen in particular as they each have very unique strategies on how they compete in this extremely competitive industry.
2. Trends and Strategies in the Airline Industry: a Brief Overview
Hurt by poor profits and scarred from likely terrorist attacks against the US due to the US involvement in the Iraq war, the airline industry finds itself on a bumpy course. In an effort to head off a drop in the number of passengers and rising costs for security , companies laid off staff and trimmed services. In an already intensely competitive market, the ¡°inevitable¡± industry wide shakedown will have far-reaching effects on the industry's trend towards expanding domestic and international …show more content…
One-time upstart Southwest Airlines pioneered it with peanuts, and newcomer JetBlue has given it satellite TV. Prior to September 11, there were only a handful of successful budget carriers in the US and Europe. Now those numbers are growing rapidly. Europe has seen the most growth with more than 50 budget carriers operating where there had only been four in 1999 . In the US Southwest Airlines reigns supreme over the low-fare realm. Southwest Airlines was not only profitable for the last decade (see Exhibit 6.2) but since its establishment 32 years ago . As a result, it has become a top-five carrier in the country . Likewise, since its inception in 1999, JetBlue has been growing almost exponentially. Others are taking note. Atlantic Coast Airlines, which had once relied on United Airlines for 85% of its revenue, waved good-bye to the major carrier, adopted a new look, and changed itself into a budget carrier called Independence Air
Table of Contents:
1. Introduction 3
2. Trends and Strategies in the Airline Industry: a Brief Overview 3
3. Airline Profiles 5
3.1 Southwest Airlines 5
3.2 United Airlines 5
3.3 American Airlines 5
4. The Impact of Acquisitions and Mergers 6
4.1 United Airlines/USAir 6
4.2 American Airlines/Trans World Airlines 7
4.3 Southwest Airlines/ATA 7
5. The Impact of Bankruptcy Proceedings on Untied Airlines 8
6. Effect of United Airlines Chapter 11 Proceedings on Other Airlines 9
7. External Factors Affecting the Airline Industry 9
7.1 Effects of September 11 on the Airline Industry 9
7.2 Effects of the Iraq War on the Airline Industry 10
7.3 Effects of SARS on the Airline Industry 10 …show more content…
Conclusion 13
1. Introduction
This analysis focuses on the US airline industry and its companies¡¯ stocks during the last decade. Specifically, this analysis gives attention to two so-called legacy airlines which include UAL Corporation, holding company for United Air Lines, Inc. (¡°United Airlines¡±), AMR Corp., holding company of inter alia American Airlines, Inc. (¡°American Airlines¡±), and a low cost carrier, Southwest Airlines Co. ("Southwest Airlines"). These three airlines were chosen in particular as they each have very unique strategies on how they compete in this extremely competitive industry.
2. Trends and Strategies in the Airline Industry: a Brief Overview
Hurt by poor profits and scarred from likely terrorist attacks against the US due to the US involvement in the Iraq war, the airline industry finds itself on a bumpy course. In an effort to head off a drop in the number of passengers and rising costs for security , companies laid off staff and trimmed services. In an already intensely competitive market, the ¡°inevitable¡± industry wide shakedown will have far-reaching effects on the industry's trend towards expanding domestic and international …show more content…
One-time upstart Southwest Airlines pioneered it with peanuts, and newcomer JetBlue has given it satellite TV. Prior to September 11, there were only a handful of successful budget carriers in the US and Europe. Now those numbers are growing rapidly. Europe has seen the most growth with more than 50 budget carriers operating where there had only been four in 1999 . In the US Southwest Airlines reigns supreme over the low-fare realm. Southwest Airlines was not only profitable for the last decade (see Exhibit 6.2) but since its establishment 32 years ago . As a result, it has become a top-five carrier in the country . Likewise, since its inception in 1999, JetBlue has been growing almost exponentially. Others are taking note. Atlantic Coast Airlines, which had once relied on United Airlines for 85% of its revenue, waved good-bye to the major carrier, adopted a new look, and changed itself into a budget carrier called Independence Air