Abstract The paper discusses the background and activities of AirTran Airways, one of the largest and most successful low-fare airlines in the United States. AirTran Airways has received several awards and recognitions for its performance and service. The paper states that the success experienced by AirTran airways is a direct result of its effective marketing strategies which addresses the target market through the marketing mix of "four P's": product, price, place and promotion. The paper elaborates on these parameters that have enabled the airline to achieve its success.
From the Paper "In general, AirTran Airways at its start-up attracted customers through the advertisement of low air fares, and expansion strategy that was aggressive, and a promotion that allowed customers between the ages of 18 and 22 years old to purchase flights very cheaply by flying stand-by (Barrett, 2006). Successful promotional strategies resulted in AirTran Airways being one of only a few airlines that recorded profit after the terrorist attacks of September 11, 2001 (Barrett, 2006). Furthermore, AirTran Airways has reported steady increases in its annual revenue over the past years since its inception."
Abstract The paper focuses on AirTran Airways, a high-growth, high-leverage company operating in the discount airline industry. The paper examines the company's key competitors, the two important success factors of differentiation and control of cost structure as well as the performance measures of success in the airline industry. A SWOT and financial analysis of AirTran Airways is provided as well as an assessment of the company's investment potential and a company valuation.
Outline:
Introduction
Company Background
Key Competitors
Keys to Success
Performance Measures
SWOT
Financial Analysis
Conclusions
Valuation
From the Paper "AirTran Airways is a discount airline based in Orlando, Florida. The current incarnation of AirTran was created in 1997 when ValuJet bought what was then a much smaller AirTran and adopted the brand. The company operates its main hub from the former ValuJet hub of Atlanta-Hartfield. The company today also has sizeable operations in two other airports, Orlando and Baltimore-Washington. AirTran services 52 markets (all but one in the US), and operates over 700 flights per day, totals which are both growing at a steady pace. They operate a fleet of over 120 aircraft, with firm orders to take them over 180. AirTran serviced over 20 million passengers in 2006."
Abstract Today, Delta Air Lines, Inc. is an air carrier that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. To identify Delta's overall domestic and global strategies to maintain and increase its market share, this paper provides a brief company profile for Delta and a current problem that has adversely affected the company's performance, followed by an assessment of a potential solution for the company's predicament today and in the future. A summary of the research is provided in the conclusion.
From the Paper "As early as mid-1999, though, Delta was already targeting foreign airlines for strategic alliances. For instance, in an article entitled, "Air France to Set up Alliance with U.S. Delta Airlines," it was reported that France's national carrier Air France announced intentions to establish a strategic partnership with the U.S. Delta Airlines pursuant to both airlines' intentions to expand into a global marketplace by establishing alliances with other air companies. This move also involved Delta disengaging itself from its relationship with Swissair, Sabena and Austrian Airlines -- a move that was not without controversy."
Tags:airtran, aviation, jetblue, lufthansa, southwest, united
Abstract In this article, the writer notes that there are two different major classifications of airlines, legacy carriers such as Delta Airlines, American Airlines and United with hub-and-spoke systems and newer low-cost airlines such as Southwest, JetBlue, and AirTran with point-to-point models. The writer notes that armed with lower airfares, low-cost carriers have already captured around 20% of the market and are rapidly gaining an even greater market share. The writer explains that most legacy airlines have at least one central airport that their flights have to go through and from that hub, the spoke flights take passengers to select destinations. This hub-and-spoke system is in sharp contrast with point-to-point models that fly directly between two small markets. The writer discusses that in the past, hubs enabled legacy airlines to provide frequent service to many cities with short layovers, but now many travelers are no longer willing to pay high ticket prices.
From the Paper "Because Delta has an expensive hub-and-spoke business models, weak financial performance, anemic consumer demand and higher energy costs, it doesn't make sense for it to try to compete solely on price. Instead, Delta needs to explore price discrimination to find those customers that are willing to pay more for airline services. Given weak demand, increased competition and a flat or marginally improving economy, one-to-one marketing practices are needed to find new customers and to justify their higher prices.
"On the Internet, airlines have access to personal data entered by the consumer (name, address, gender, email, phone, credit card numbers, travel preferences) surfing patterns and purchase history. This type of information provides unparalleled opportunities for price discrimination. Not only can Delta rely on supply-and-demand factors to formulate different prices for the same service, it can now use their wealth of customer data to charge consumer's maximum prices."
