This paper discusses the business strategies of the companies that make up the airline industry, which remains a high-cost business with low profit margins.
Written in 2006; 2,515 words; 8 sources; MLA; $ 76.95
Paper Summary:
This paper explains that the airline industry remains on the brink of bankruptcy because of 9/11, the dramatic increase in the costs of fuel and increased security costs, which has led to the discretionary control of the airline industry by the Air Transportation Stabilization Board. The author points out that many U.S. airlines have formed international alliances to the benefit of the airlines and their customers; however, these airlines have not experienced a tremendous amount of growth in the last decade. The paper relates that the smaller, more regional airlines, such as Southwest Airlines and the no-frill airline Jet Blue, have developed strategies, which have increased their profits and competitiveness and have been copied by other U.S. and international airlines.
From the Paper:
"Southwest's success suggests that it can. JetBlue simply needs to focus on those things that separate it from the competition. While Southwest focused on affordability, JetBlue focuses on reliability. JetBlue has an operational recovery system, which allows planners to select goals before rerouting planes. "The software produces a solution and calculates its costs," after factoring in a plane's maintenance and fuel needs, the experience and availability of the flight crew, and FAA rules. The software will allow JetBlue to move into more markets without losing its reliability edge."
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