Instructor Case: Southwest Airlines in 2010 Dr. Deb Sircar University of Greenwich Business School http://create.mcgraw-hill.com Copyright 2012 by The McGraw-Hill Companies‚ Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976‚ no part of this publication may be reproduced or distributed in any form or by any means‚ or stored in a database or retrieval system‚ without prior written permission of the publisher
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1. Rift Airlines’ operating costs are considerably higher than those of the competitor companies. The company‚ also‚ cannot reach the desired productivity level. Unless its operating costs decline‚ company cannot compete with other organizations that operate at very low costs. The company is spending too much for the employees. Other expenditures are rather high so the managers have to think about a way to reduce the costs and to increase the productivity. 2. Armstrong suggests reducing the number
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Importance to economy The revenue of international airlines industry has increased from 476 billion USD in 2009 to 567 billion USD in 2011‚ a 9.3% year-on-year increase. This industry employs 56.5 million workers and accounts for US $2.2 trillion of the global GDP. Indian Aviation industry contributes to 0.5% of the India’s GDP and generates 1.7 million jobs. Technological Trends Major cost items for airlines are fuel‚ labour and maintenance. Airlines are able to reduce the cost/increase profit by
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strategies did Southwest Airlines developed earlier to gain market visibility? Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses‚ free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground crew
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Running head: JET BLUE ANALYSIS Jet Blue Analysis BUS 630 Assignment WK 3 Jet Blue Analysis Jet Blue is now a major U.S. airline that has established itself as a leading low-fare‚ low cost passenger airline by offering customers high quality customer service and a differentiated product according to Jet Blue 10-K/A pg . Their steps to achieve their goals in the market place are to stimulate demand with low fares. Jet Blue offers a wide variety of low fares that target those leisure travelers
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Southwest Airlines Case Study Manohar Gadiraju Overview Southwest Airlines has been a cost leader in the airline industry with continuous growth and profits for the past 35 years. It has been the fourth largest domestic carrier with low priced routes and a no frills policy - free of in-flight meals and baggage transfers. The low cost fares‚ almost comparable to automobile transportation costs‚ have created both an unprecedented growth and new markets for this airline. Southwest was
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IndiGo Airlines – A Case study in International Business Strategy The right thing to do is also the smart thing to do The success of Indigo is a mix of a clear brand promise of "on time" and supported with slick branding and signage‚ smart technology support and a passionate and young work force who multi-task. About Indigo IndiGo is India’s largest airline with a market share of 29.5 per cent as of June‚2013 as well as the country’s largest low fare carrier. IndiGo is the fastest growing
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Case Study: A Tale of Two Airlines in The Network Age Empowering your employees with industry standard service training and motivated working attitude company-wide will help the company thrive in the Network Age. Airline customer service experience depends on more than Information Technology only. Human Factors went above and beyond what IT can provide and could jeopardize the service quality. IT Managers today should take human factors more seriously than ever. “A Tale of Two Airlines in The
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History JetBlue Airways Corporation (JetBlue) was founded in 1998 in Delaware by David Neeleman‚ a former Southwest executive. The airline began operations in 2000 based out of JFK International Airport (JFK) in New York. JetBlue currently has over 12‚900 employees and has been repeatedly ranked as number one in customer service among low-cost carriers by J.D. Power & Associates. As of December 31‚ 2010 the company operates over 650 flights daily‚ servicing 63 destinations in 21 states‚ including
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CASE STUDY: DISTRIBUTION AT AMERICAN AIRLINES OVERVIEW American Airlines is a major United States airline. It was formed in 1930 as a passenger airline and merged with different carriers since its formation. American Airlines’ operations grew rapidly after World War II. In 1921‚ American‘s corporate predecessor had only five small airplanes for transporting airmail. In 1946‚ American ordered 220 new planes. 1952 - American introduced the Magnetronic ― “Reservisor”‚ a mechanical console installed
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