Examines the financial situation of airline companies in the U.S., the cost of improved airline security and how this will effect the airline companies.
2,400 words (approx. 9.6 pages), 4 sources, 2002, $ 89.95
Abstract Security has become the greatest concern of United States government since the terrorist attacks of September 11. But while enhanced security is desirable, the costs that are associated with it are unfortunately causing numerous financial problems for airlines in the United States. The aviation industry is already suffering from slow economic growth in the country and now with extra security expenditure, many airlines fear they will fail to post profit in the next few quarters. The paper discusses the rising cost of security and how it is hurting airline business in the United States. The paper also sheds light on general condition of airlines immediately after September 11, which helps in understanding why extra security costs are highly undesirable in these financially chaotic times.
Abstract The paper provides an analysis of the airline industry in the USA and discusses its attractiveness from an economical point of view. In particular, the paper focuses on the two main competitors of American Airlines, Delta Airlines and Northwest Airlines and their advantages. The paper then looks at the competitive advantages of American Airlines and the challenges and risks facing the company. The paper concludes with recommendations for the company to improve its strategies and thus ensure it maintains its position of market leader.
Outline:
Executive Summary
Analysis of the Industry
Analysis of Competitors
Firm Analysis
Recommendations
From the Paper "The airline industry in the United States of America is a developed one and there is the possibility of further development. American Airlines is the biggest air carrier in the US and has numerous strategic advantages, such as the capacity to take millions of people to five continents on a very well organized schedule, proving them with all the desired comfort using safe planes and a well organized route network. The company must nevertheless face the competition represented amongst others, by Delta Airlines and Northwest Airlines. The major competitive advantages of these companies is represented by their capacity to take people to continents where American does not fly, such as Africa, their efficacious organization and their fare policies. "
Abstract The writer of this paper contends that despite the large amount of capital required to start an airline, the spotty record of profits in the industry historically, and the red tape that a prospective airline must go through in order to fly, the airline industry sees frequent new entrants and is thus highly competitive. The paper's author continues and states that airplanes themselves are relatively standardized, due to the engineering constraints of building machines that can fly, and due to the fact that there are only a small handful of manufacturers worldwide. So airlines differentiate themselves on three key features - price, service and routes. The paper's author examines the many factors that influence airline's decisions regarding operating procedures, service, routes and prices and attempts to evaluate the effects on airline profitability.
From the Paper "Another factor in terms of both price/demand elasticity and in terms of overall demand is that of substitutes. This is particularly true in the business travel sector, and in short haul leisure travel. Any viable form of transportation is a substitute for air travel, be it car, train or bus. Electronic communications and overnight couriers combine to provide another substitute in the business travel segment. This equates to price in that there is a point at which a business trip becomes an unnecessary luxury to be replaced with a conference call. For vacation travel, a similar phenomenon applies, whereby an alternate form of transport can be substituted if plane travel is too expensive. These other modes are often cheaper anyway, but take longer. To fly is to pay a premium for convenience. Should the price of that convenience become too high, the flight will not be taken."
This in-depth paper profiles the corporate and business practices of Southwest Airlines while primarily focusing on the company's approach to business ethics.
Abstract The writer of this paper analyzes the on-going success of Southwest Airlines which continues to remain a leader in the industry during an era when more and more airlines are facing closure and bankruptcy. This paper delves into the numerous crises faced by Southwest Airlines which the company has successfully managed to weather. The writer delves into the history of the company which began in 1971 with only three aircrafts while also discussing the company's primary goals and vision. This well-researched paper analyzes the business ethics and corporate structure of Southwest which states that their employees are hardworking, dedicated and highly motivated and a significant contributing factor to the company's overall success. This paper also contains the results of published studies as well as statistics and data relevant to this particular topic.
Table of Contents:
Abstract
Introduction
An Overview of the Business Ethics of Southwest Airlines How Southwest Airlines Handles the Various Crises
The Ethical Responsibility of Southwest Today and for the Future
Conclusion
References
From the Paper "Donna Conover, the executive Vice President of Customer services, states that ever since she joined the company, more than twenty eight years back, she had always felt that the employees of the company were the greatest assets for the firm, and perhaps it is because of the policy that the company follows, which is that of never ever dictating pay cuts to its employees, that it has managed to keep all its employees happy and satisfied, and working hard at all times. This was seen in the fact that employees by themselves, during the Gulf War of the 1990's, when fuel costs skyrocketed, voluntarily reduced their pay for some time in order to cope with the escalating costs of fuel. In a similar manner, after the debacle of September 11, Southwest Airlines employees volunteered to take cut costs on their wages, so that the company may be able to cope better with its reductions in flying schedules. This type of loyalty for the company has as yet been unrivalled."
Abstract In this essay, the economic implications of the airline industry are examined. The writer discusses the background of the airline industry. Further, the writer looks at planning and policy implications. Domestic and international airline markets are explored in this paper. The writer discusses the impact of deregulation on the airline industry. The issue of foreign capital investment and related security issues are also discussed. The writer looks at the role of the federal government in this regard.
From the Paper "The air transport industry is one of the most highly competitive in the world despite significant barriers to entry, arising from the large capital outlays required to purchase operate and maintain aircraft. As demand for international air travel has increased, alliances have been formed among domestic carriers as well as among international carriers. The result is that the market as a whole underwent a period of consolidation, which brought new pressure to bear on government regulators and which prompted some critics of the ... "
Abstract This paper discusses the ethical issues involved in the United Airlines case by which it has divested itself of its pension plans, as the leadership sought concessions from the unions in order to cut labor costs and so allow the airline to continue operating. It looks at how from the airline point of view, the issue was framed as saving jobs or closing the airline. For employees, though, the issue involved a breach of trust as the airline eliminated the pension system it had maintained.
From the Paper "The recent restructuring of employment agreements by United Airlines raises a number of ethical questions as well as business issues and the possibility of future regulatory issues. United Airlines reached the point of bankruptcy, or at least claimed that it was facing bankruptcy, and to forestall this conclusion of the company, the leadership sought concessions from the unions in order to cut labor costs and so allow the airline to continue operating. From the airline point of view, the issue was framed as saving jobs or closing the airline. For employees, though, the issue involved a breach of trust as the airline eliminated the pension system it had maintained. The issue is not solved by the fact that a federal court allowed this change, and indeed this fact only creates clear in others about what the government will allow an industry to do with funds entrusted to company pension plans across the country."
Abstract This report focuses on how newer, smaller, and more technologically advanced airlines like JetBlue are fulfilling their mission in providing outstanding customer service. Weaknesses in the airline industry have become more than apparent. Moving into the 21st century, commercial aviation has been in a steady decline. The paper shows that the major airlines might have felt as though the new, low-cost carriers were just a passing fad and that, by comparison, the major airlines would continue to offer a superior service. The papers shows, however, that smaller carriers such as JetBlue have demonstrated that they can operate more efficiently and be more cost-effective by having the latest technology in their business model, information and infrastructure systems, airplanes, and terminals.
From the Paper "Furthermore, convenience has been declining of late; congestion and flight delays reached record levels before September 11, and the additional security measures now in place have added further difficulties for travelers.? (Costa, Harned, & Lundquist, 2002) Through all of the current turmoil in the industry, smaller commercial carriers have become the epitome of success. Southwest and JetBlue for example have been consistently turning a profit and consumers have confirmed their support for the brand names."
Abstract This paper discusses power and governance at American Airlines. It looks at the company's leadership, the power structure at American Airlines and losses to the airline industry and to American Airlines starting in 2001.
Abstract This paper analyzes the use of Information Technology by Delta Airlines today, noting that the airline industry has developed a number of uses for IT, uses that help increase efficiency, reduce costs and produce a better operation. The paper illustrates how Delta Airlines is one of the leading U.S. airlines today and has made good use of IT to increase customer service in a number of areas.
From the Paper "Information Technology (IT) serves the needs of most businesses today in some degree, even if it only involves the use of a computer to keep records. The airline industry is no exception and has developed a number of uses for IT, uses that help increase efficiency, reduce costs and produce a better operation. Delta Airlines is one of the leading U.S. airlines today and has made good use of IT to increase customer service in a number of areas. Delta has been a major airline for many years. Before deregulation in the 1970s, many had speculated as to how it would affect the structure of the airline industry and the prevailing view was that deregulation would lead to a substantial consolidation of the industry, leaving some four to six large systems, each centered around one of the major pre-deregulation trunks."
Abstract The problems confronting the Canadian airline industry as a consequence of deregulation are not new. The paper provides an outline of the history of deregulation in the Canadian airline industry. It also argues that deregulation has played an integral role in the financial problems that have plagued Canadian airlines including not only Air Canada but failed airlines such as Canada 3000, Jetsgo, and Canadian.
Abstract The paper notes that the brand success of Emirates airlines has not come about by a mere stroke of luck but rather by good strategy planning and the management's ability to act quickly and decisively, which have helped the company surge ahead of its competitors in both regional and global markets. The paper further notes that what started as an airline with borrowed aircrafts has now become an airline with the largest and the youngest fleet of Airbuses and Boeings in the entire airline industry. The paper discusses how premier services and customer service has helped earn Emirates a top place in the SkyTrax Excellence Award rankings. This paper identifies some of the issues and advantages of brand image planning and strategy as well as the effect of markets, customers and economies that impact success of an organization.
Outline:
Introduction
Literature Review
Introduction to brand recognition and its role in organizational strategy
History Of Emirates And An Analysis Of The Organization
Conclusion
Proposed Aim & Objective
Research Questions
Research Objectives
Proposed Methodology
Introduction
Research Issues
Research Strategy and Approach
Research Methods
Conclusion
From the Paper "The SkyTrax Excellence Awards provides "the most prestigious recognition of outstanding Quality Excellence for product and customer service delivery across today's world satisfaction. Based on the surveys conducted by SkyTrax, Emirates was rated as a 4 star airlines. In 2005, Emirates was ranked as the 3rd best airlines operating, in 2006 it was ranked 5th and in 2007 it ranked 9th. (SKYTRAX, 2006) While the success of the airline have been tremendous, it is important to note that the airline has shifted downwards in the overall ranking."
Abstract This paper discusses competition in the airline industry. It contends that while there have been some advantages for the airline passenger in the changes in the ways in which airline companies are structured, in general these changes have served to benefit the companies and their stockholders at the expense of ordinary consumers.
From the Paper "The most important developments in the American airline industry over the past generation have not come about through technological advances although certainly there have been some important technical break-through such as more efficient wing de-icers that ..."
Abstract This paper explains that American Airlines has continued to grow in an industry, which has been characterized by many start-ups and failures. The author points out the way AA has emerged as an industry leader, competing effectively on a global scale. The paper evaluates the planning function of management at American Airlines.
From the Paper "It is not a good time for any of the airlines although passenger loads are at an all time high and projections are good for passengers for the summer, fuel prices are also way up and there is a price war between all of the carriers driving costs up and profits down. American Airlines has expanded rapidly in both domestic and international markets building a reputation for dependable and quality service. American Airlines has managed to grow in an industry that has ..."
Abstract In this essay, the writer discusses how the airline industry has changed following its privatization after 1978. The writer contends that the Deregulation Act has revolutionized the industry for the better. The writer discusses the success of "boutique" airlines. The writer also examines the effect of the deregulation on the consumer.
From the Paper "Can designer uniforms, satellite TV, the disappearance of first-class signature potato chips and the promise of more legroom, counter-balance America's air travelers' displeasure with congested airports, airline safety standards and many flight's delayed tag seen on departure boards. No. However low fare prices can and have been the reason for much of the success America's airline industry has seen since when the government gave up determining the fares domestic airlines could charge and the routes they could serve, today boutique airlines such as Jet Blue ... "
Abstract This paper discusses the Canadian airline industry. Some historical reference is used to support the research and particular emphasis is given to Air Canada. Air Canada is Canada's largest airline with approximately 70% of the market and as such has a considerable impact on the overall economy. Some mention is given to the national airport systems (NAS) and its relationship to the airline industry.
From the Paper "The Canadian Airline industry is often overlooked in relation to the North American airline industry as a whole and in relation to the financial woes of the American airline industry. Yet, the Canadian airline industry suffered as much a devastating blow due to the events of September 11^th, 2001 (9/11) as the American airline industry. A general global spiral in the performance of air carriers internationally has not bypassed the Canadian airline industry either. "
