A Multi Million Dollar Business For Airlines

According to MBASkool (2015), a SWOT analysis has been completed to show some of the opportunities and threats that American Airlines faces. They are listed as follows:

In this paper we analyze the 2011 Southwest airline annual and then major an in-depth analysis of its mission and vision. The analysis of how its performance is linked to its mission and vision is also carried out. This is then followed by how its corporate goals are tied to its mission and vision. This paper then presents a competitive and market analysis with the aim of determining the company's strengths and weaknesses. A recommendation on the most appropriate strategy for the maximization of company's profits is then carried out.

The airline currently known as JetBlue airlines was created in 1999 by Utah entrepreneur David Needleman with the goal of bringing humanity back to the airline industry. Needleman started an innovative airline called Morris Air, and was the first airline to successfully utilize a ticketless reservation system, and the basic structure was to provide consumers with excellent service but low fares. This airline reported making over 20 million in profits in 2003, but decided to sell this new airline to Southwest airlines, and signed a five year no competition agreement (JetBlue airlines, 2008). The design of the new JetBlue airline would use aircraft with one cabin class, and incorporate an in flight entertainment system with over 24 satellite television channels and web services, as well as movies in the headrest of every seat. The choice was also made not to serve meals, but offer gourmet chips and refreshments. The cabin also offers larger leather seats with increased legroom, larger overhead bins, and JetBlue was one of the first airlines to convert to a cashless system for drinks and food. The company began flying in 2000, with only two leased Airbus A320’s, and its first route was from New York’s John F. Kennedy airport to Ft. Lauderdale, Florida. The airline was given 75 takeoff slots in JFK airport, and has been working there way up to one of the most successful airlines. The airlines goals were to beat their competitors by 65%, and increase the positive

Southwest Airlines (SWA) has been considered as the most successful airline company in the United States. SWA had the lowest fare for about 45% lower than other airlines, however, still being profitable for many years. Their successful company also has been recognized in many reputable business magazines and newspapers, such as Fortune and The Wall Street Journal as they consistently achieved appreciations for their well-managed organizational communication practices. They unconventional ways of managing their employees and running their business showed significant improvements in their performance. Therefore, it is essential to review and understand their actions and applications accordingly to organizational communication strategies, which they used in Southwest and the book “NUTS! Southwest Airlines’ Crazy Recipe for Business and Personal Success” by Kevin L. Freiberg and Jacquelyn A. Freiberg provides an insight of the strategies.

Airport security is extremely essential for stopping terrorism in the United States. Bombings and explosions account for 65% of terrorist attacks, armed assaults account for 25% of terrorist attacks, the last 10% accounts for assassination facility attacks and hostage takings. Today the Transportation Security Administration, also know as the TSA, has four to five thousand employees working every day to keep airports safe from a terrorist attack happening. New technology has made airports safer for travelers, nevertheless not all travelers think it is necessary. Some travelers complain that because of the new security systems in the baggage checks and body scanners it takes too long to get to the flight. These passengers do not understand

P. Airlines are subject to extensive regulatory and legal requirements issued by The Department of Transportation and The Federal Aviation Administration. The industry has to comply with laws and regulations not only domestically but also internationally which requires significant spending. After 9/11, many new security measures have been put into practice, resulting in expenditures for equipment, training the personnel, federal and airport charges, security taxes and etc.

With over eight hundred aircrafts, over one hundred seventy million customers each year, and flights to over fifty-seven countries, Delta Airlines has proven to be a large and powerful global company. Delta Airlines began in 1924 as Huff Daland Dusters, which was a crop-dusting and mail service operation and the first commercial agricultural flying company in existence. C.E. Woolman purchased Huff Daland Dusters in 1928 and changed the name to Delta Air Service. The company then had its first passenger flight the following year, which carried five passengers and one pilot. After four years of suspension of passenger flights, they resumed in 1934 and renamed the company once again to Delta Airlines. Delta started building their reputation as a socially conscious company when they took part in the war effort in 1942, by modifying their aircraft and training army pilots and mechanics.

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

Nowadays there are many airlines competing with each other. They choose different strategies in advertising their services in order to attract as many clients as possible. Some companies in their ads make an accent on exceptional features of an airline and its luxury. Such advertisements are more focused on keeping the attention of wealthy and prudent people who value their time and comfort. American Airlines is a great example of a company using this strategy: they proclaimed its exceptionalism in ads with themes like “Something special in the air” and “We’re American Airlines. Doing what we do best” (nytimes.com). Their advertisements have always been promoting an incredible quality of the services and a great respect for its high-valued customers. There are also some other companies which are ready to use provocative and sometimes scandalous slogans and images, in order to attract even more attention and cause a wide resonance among the people and in mass media. However, these advertisement campaigns are aimed toward a young population which is more likely to understand such fun and defiant statements. Ryanair, an Irish low-cost airline, decided to take a risk and has published several provocative advertisements with extremely controversial slogans. According to analyst Vuk Bojović, they were looking at a powerful and sharp message that would have two purposeful effects. First of all, to get the attention of those who only care for low prices but not about the

American Airlines has become the nation’s dominant air carrier after merging with US Airways and many have declared that the 787 is a critical next step in the modernization of American Airlines as a company. A while back American announced that flights will begin May 7 between Dallas-Fort Worth and its hub in Chicago, and beginning June 2 between Dallas-Fort Worth and Beijing. On June 4, American will fly the Dreamliner between Dallas-Fort Worth and Buenos Aires, Argentina. American said it will add more 787 routes this year as the new aircraft arrive, but they gave very little clues on what the future holds. "As we take delivery of the 787 and all of our new aircraft on order, we will continue to assess our network to determine which

Jetblue has many legal issues with the airline since they launched it. The Airlines industry is one of the most important part of the country’s economy, and many other factors which can make the possible to success of any airline industry. Legal issues can effects on the staff, financing, competitors, government regulations and climatic conditions. Jetblue airways, was founded in 1999 but made it maiden flight in 2001, and since then Jetblue is one of the most profitable companies in America. Jetblue is one of the most successful and profitable, and when big airlines was losing in industry. Jetblue Airways been in all kind of issues whether it’s an airplane or any other case. Jetblue Airways, been lawsuit many times in airline career, such

With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.

The Global Airline Alliances is an important part of the airline business industry in the 21st century, this includes: the increase of airline performances, provides great benefits for the employees, customers and for the marketing industry. There are three main alliances in aviation today, this includes, Star Alliance, Oneworld and Skyteam.