2.1 Introduction ! Despite adverse economic conditions in the recent past‚ the airline industry globally has proven to be resilient. After a short downturn‚ the industry recovered quickly and‚ in fact‚ grew moderately. From 2011 to 2031‚ annual air traffic is expected to increase at a compound annual growth rate (CAGR) of 5%‚ and reach about 13.8 billion revenue passenger kilometers (RPK). ! While the mainstay markets (Europe and North America) have not shown significant growth‚ and
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Case 14: AMR - American Airlines VALUATION: VALUING A CORPORATE BOND ISSUE AMR is the parent company of American Airlines. In addition to its primary subsidiary‚ AMR also operates several airline support companies such as the SABRE group (reservations)‚ the Management Services Group‚ and American Eagle (a regional carrier). American Airlines is currently considering the issuance of a series of $1‚000 par bonds. The coupon rate offered‚ based on current market interest rates and the Standard
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Airline Ticket Prices Jodie L. Hebner Grantham University An airline’s ticket price is determined by several factors to include time of day a consumer wishes to travel‚ day of the week such as Tuesday’s and Thursday’s are usually the most affordable days to travel‚ popular versus non-popular destinations‚ first class costs more than general class‚ cost of fuel‚ competition from other airlines‚ special factors such as discounts for military‚ government or corporate personnel‚ (How Stuff Works‚
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Southwest Airlines Executive Summary “The U.S. airline industry had lost money in 14 of the 28 years from 1980 through 2007‚ with combined annual losses exceeding combined annual profits by $15 billion. Yet in July 2008‚ Southwest reported record quarterly revenues‚ its 69th consecutive quarter of profitability‚ rising passenger traffic on its flights‚ and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King‚ along with Herb Kelleher‚ launched the
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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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Cathay Pacific Airlines Cathay Pacific has been serving and growing with Hong Kong for 60 years. Being as the world’s largest international cargo airline and the world’s busiest airport in terms of cargo traffic‚ Cathay Pacific is one of the seven airlines to be ranked as a 5-star airline by Skytrax in 2009. Affected by the unstable global situation of political‚ economic and cultural‚ each single change of general environment may cause significant influence of airline industry. Therefore‚ to
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SOUTHWEST AIRLINE ANALYSIS Contents SOUTHWEST AIRLINE CASE STUDY 4 INTRODUCTION 4 PART 1: EXTERNAL ANALYSIS 5 OVERVIEW 5 MACRO-ENVIRONMENTAL ANALYSIS 6 PESTEL Analysis 6 Industry Analysis 9 Five Forces Model Pictorial Representation 9 Five Forces Analysis 10 PART 2: INTERNAL ANALYSIS 13 OVERVIEW 13 SWOT ANALYSIS 14 Strengths 14 Weaknesses 15 Opportunities 15 Threats 16 The VRIO Framework 16 FINANCIAL
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The World Airline Industry A European Perspective (Case Study) MCS-M-160 International Strategy Student Name: Siyuan Li Student ID: 2800712 Unit Coordinator: Robin John Question 1 Through PESTEL analysis‚ identify the major external environmental drives influencing the airline industry. Since the end of the case (2003)‚ to what extent have these driving force changed? Question 4 Analysis the business model of the low cost airline‚ discuss their
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A CASE ANALYSIS ON NORTH-SOUTH AIRLINE I. CASE BACKGROUND Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier in which it inherited both an aging fleet of Boeing 727-300 aircraft and Stephen Ruth. As the new president of the airline‚ Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts. He noticed that there have been significant differences
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Airline Reservation System Chapter 1 1.1 Introduction In today’s airline industry users or customers can reserve seat or book flight from any place in the world as long as they are connected to internet. The Innovation of technology has made traveling in the air easier for customers with airline reservation or booking just a click away. The fastest means of transportation today is by air. Thousands of people flock the airline industry this days
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