page 5 Operating cash flows page 5 NPV page 5 5. Evaluation page 6-7 6. Appendix Introduction Fly-by-night Airlines is a major commercial air carrier offering passenger service between most large cities in the US. Its profitable route is between Los Angeles and New York and the firm is considering replacing its old PJ-1 planes to PJ-2 or PJ-3 planes. Currently
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Southwest Airlines Leadership at Southwest has grown the company. The leader has a strong personality and led the company to a great position. Herb Kelleher ’s business decisions and out of the ordinary and have had success beyond belief. Employee empowerment is needed to make any successful company. At Southwest Airlines‚ the empowerment has led the employees to lead themselves. They take pride in the actions. It allows them to get other involved and makes them more successful in the tasks
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What is the crisis? On the night of 31 October 2000‚ Singapore Airlines Flight SQ006‚ at 11:18 P.M. local time (Taipei)‚ took off from Chiang Kai-Shek Airport (Taipei) heading to Los Angeles (Marketeer‚ 2002). Before the taking off‚ the weather was enormously terrible due to Typhoon Xangasane (Christian Dougoud‚ 2012). There were 159 passengers and 20 crew members on the flight. The pilots were allowed to take the plane off along the 5L (left) runway‚ because 5R (right) runway was under construction
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JetBlue added E190 to its fleet. By late 2006‚ JetBlue like other airlines‚ faced softening demand and higher costs due to increasing fuel prices. Barger played a large role in the airline’s decision at the end of 2006 to slow its rate of growth by reducing its purchase commitments for new planes. In light of the operational challenges JetBlue faced in Feb 2007‚ as well as the unabated rise in fuel costs‚ Barger realized that the airline would need to take further steps to slow its rate of growth. Given
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relevant changes taking place in its environment and formulate strategies to adapt to these changes. The overall environment of the Airlines Industry in the USA as found in this case‚ could be described as that of bitter rivalry. The hostility between competitors were so harsh that two rivals -Texas International and Braniff joined hands to destroy Southwest Airlines even before it could begin its operation. Failed to stop its operation‚ the rivals began to put up obstacles at every step Southwest
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strategy failure for not identifying full fare ticketed customer through the (RMS) revenue management system and (CRS) computer reservation system. Possible loss of a loyal 10 year profitable customer. 2. Poor service management by a failure of airline employees to coordinate standard operations strategy of inclement weather procedures. Inflight attendants failed to identify passengers with close-connecting flights and to notify employees at destination airport to hold planes. Resulted in loss
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Currently‚ the Airline Industry is one of the most attractive industries. This conclusion was possible after an extensive research in the market. To do this‚ it was necessary to analyze the industry with the five forces model of Michael Porter. The first threat to consider is the entrance of new companies in the market. In this point‚ is possible to say that it’s easier to enter the market than thirty years ago. The deregulation allowed the barriers disappearance and with this‚ the competition
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Reprinted with permission of Auerbach Publications‚ CRC Press LLC‚ 535 Fifth Avenue‚ New York‚ NY 10017. All rights reserved. SUPPLY CHAIN STRATEGIES Jim Ayers By thinking in terms of supply chains instead of individual operations or departments‚ CIOs can improve their competitive strategies. These strategies‚ in turn‚ change organizational operations‚ roles‚ and information systems. This article shows how such “supply chain thinking” works. upply chains are a hot management topic. Eyes are
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KUALA LUMPUR: The impending collaboration between Malaysia Airlines (MAS) and AirAsia Bhd (AirAsia) is a positive move as it would eliminate irrational competitive pricing‚ allow economies of scale‚ higher bargaining power and synergies. Hong Leong Investment Bank Bhd (HLIB) said AirAsia‚ as Malaysia’s only low-cost carrier player‚ would have better control over supply and yields without competition from FireFly‚ MAs-owned low-cost unit. “There are higher chances of AirAsia plying for routes‚ which
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Southwest Airlines: Leading the Airline Industry one Statistic at a Time Victoria Mack May 6th‚ 2013 Quantitative Research Methods Term Paper I. Introduction “The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company spirit.” (Kelly‚ Gary) By providing the highest quality of customer service‚ Southwest Airlines business model is set up to provide
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