-Common Size and Comparative analysis also show the similar pattern.
⇛ Year2008 was a significant variable in fuel expense changes
Global Economic Downturn and Crude oil prices
Global Economic Crisis directly caused the explosion of oil price and
this brought the surge of fuel expenses as well
This phenomenon directly caused the huge burden for fuel expenses to airlines.
airline industry would be a great opportunity for our improvement. This is because airlines industry is a mixture of many hospitality fields such as service science(Online booking system, Aircraft technology, IT system for serving customers ), service marketing for ticket sales like hotel industry and food-service industry. For these reasons, we chose airline industry and AMR Corporation and US A
airlines, driving a car or taking a train could be substitutes for the flight. As for the international airlines, the treat of substitutes is very low, because there are few options.
ㆍCompetitive Rivalry. In US, the airline industry is intensely competitive. Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get
③ Environmentally-responsible aviation : By March 2010, EU-based airlines must provide carbon dioxide emission reports. That’s why, over the last six months, several EU airlines have begun using bio-fuel either wholly or in part on certain routes. This trend is now spreading to North America where several airlines have indicated their interest in buying eco-friendly jet fuel.
3. History w
airline industry and these are alliance, privatization and empowerment. By these changes, competitions of airline industry become really fierce and this leads the necessities of adopting economies of scope. Hub-and-spoke system, which was implemented in the airline distribution system to take advantage of economies of scope, is widely used. Moreover, we were able to find out that this system migh
airline companies in the order of operating revenue. By comparing these two data, we have successfully selected 7 companies to be used in our research. The following airline companies are chosen through the aforementioned procedures.
1. Alaska Airways
Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company servi
airline. On the other hand, Ryanair has also become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travelers who could not afro to fly major airlines.
The main goal of the company is to provide a no-frills service with low fares designed to stimulate demand. At the time, it did not aim to offer the lowest fare on the market. Howeve
Airlines.
Who is Herb Kelleher? - Profile
- Born March 12, 1931 in New Jersey, Haddon Heights
- Wesleyan University, English and Philosophy major
- New York University – Law school
- Lawyer at a law firm in Texas
- Founded South West Airline in 1971 with Rollin King
- CEO of South West Airline from 1978 to 2001
- Executive Chairmen of the Board at SWA
- appointed as deputy chair
airline companies. At first, we talked about major international airlines. However, during further research, we found out that regional airlines are getting popularity. As a result, we decided to choose companies in regional airlines. Additional research, informed our group the guy called David Neeleman. He established Morris Air, which was taken over by Southwest. Then he established Jetblue, an
I. Introduction of the Project
i. The reasons for selecting companies
For this project, our team has chosen two major airline companies in the United States which are American Airlines and Delta Airlines.
Since 2000, in airline industry, there were many kinds of market environment’s changes which are related to the world economic crisis, the sharp rise of oil price and the threat of terr