Airline Companies : The United States

While Frontier and Delta are both popular choices of airlines for Americans, Delta has become more of a household name because of their friendlier service, more comfortable cabins, and their limited extras fees. Frontier airline still is a worthy competitor by being cheaper, but they also have many added on fees for things that are free with Delta. Overall, Delta knows how to take better care of their customers and make sure everyone is satisfied.

JetBlue Airways Corporation (JetBlue), often called “New York’s Hometown Airline,” operates in the airline industry. It was incorporated in August 1998, began service in February 2000 and by the end of 2013 had grown to become the fifth largest passenger carrier in the United States based on revenue passenger miles. According to the JetBlue website (2014) in 1999, David Neeleman announced his plans to launch a new airline, “New Air.” By the end of 2000 JetBlue had reported $100 million in revenue and by 2001 it posted a profit (JetBlue.com, 2014). Headquartered in Long Island City, New York, JetBlue is one of the leading carriers in Boston, Fort Lauderdale, Los Angeles, Orlando, and San Juan (JetBlue.com, 2014). With over 30 million passengers and more than 300,000 flights reported in 2013, JetBlue is one of the only two airlines that have reported increasing numbers in flight and passenger volumes year after year despite the adversities that exist in the airline industry (Bureau of Transportation, 2014). JetBlue is a low-cost carrier airline with high-end amenities. There are many airline companies around the world and in the United State. In fact, there are nine major low-cost carrier competitors that currently exist and operate in the United States: Spirit Airlines, Southwest Airlines, US Airways/American Airlines, Delta, United, Frontier, Alaska Airlines and Virgin America.

United Airlines and Continental Airlines, two major airlines companies, agreed to a merger that would create the world’s largest airline. Such important deal has a lot of problems to be dealt with, from technical, for example how to put the companies databases together, to more fundamental, like how the company should be ruled.

JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.

The Risk of Entry by Potential Competitors – Since the deregulation of the airline industry in 1978 over 1,300 new airlines have opened for business. However, most now are bankrupt or merged with the other carriers to stay workable. The established giants were Delta (merged with Northwest), American Airlines (merged with U.S. Airways), United Airlines (merged with Continental), and now Alaska Airlines (merged with Virgin America). Now the Low-Cost Carriers (LCCs) are posing a massive threat which includes Southwest Airlines (merged with Air Tran), and JetBlue.

If you have recently been planning a trip that involves flying then maybe you have already seen the newest seating class option depending on what airline you chose. Delta was the first major airline to introduce the class called “basic economy” which just means that you’re losing what little amenities you have left in economy class. The airlines are trying to compete with the budget airlines like Frontier and Spirit by taking out some of the basic options such as having the ability to choose and reserve your seat. American Airlines and United Airlines have versions of this new class that will be debuting later in the year. With these new changes some have insinuated that these airlines will assume that people would rather upgrade than have

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

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.

There are companies that are laid out in various parts of the word. The company that I had chosen the AMR Company, the industry it operates in is the Airlines. The AMR Company operates in the Airline industry and its home country/domestic environment is in the Fort Worth, Texas of the USA. AMR (parented of American Airlines) was founded back in the 1920’s by a young aviator named Charles A. Lindbergh who flew mail in DH-4 biplanes and eventually form into a modern-day American Airlines. In November of 2007 the AMR Corporation had planned to divestiture the American Eagle to its own regional carrier in 2008.

JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. They strive to make every aspect of travels as stress free as possible. To do this they offer the lowest fares, some of the best in-flight amenities and top of the line customer

There have been few inventions to change how people live and experience the world considerably as the creation of the airplane. Today, traveling by air has become the norm and it would be difficult to imagine life without it. Air travel has improved the way people are able to conduct business by shortening travel time and changing their thought of distance. The companies within the airline industry exist in a very competitive market. One of those companies, Southwest Airlines, features low-fare, no-frills air service with frequent flights of mostly short routes. Costs are kept down by the exclusive use of Boeing 737 aircraft, which allows for low maintenance costs and quicker turnaround times for flights, and by an emphasis on ticketless travel (Encyclopedia Britannica). This paper will address two segments of the general environment and how they affect Southwest and the airline industry; evaluate how Southwest has addressed two forces of competition; predict what Southwest might do to improve its ability to addresses these forces; assess the external threats affecting Southwest; discuss Southwest’s greatest strengths and most significant weaknesses; determine Southwest’s resources, capabilities, and core competencies; and analyze their value chain.

JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and

JetBlue is a low-cost domestic airline in the United States that utilizes a combination of low-cost and value-added differentiation as its market strategy. From its launch in February 2000 to the time of the case, the airline grew to become the 11th largest player in the airline industry in a short span of 4 years.

Being one of the top airline industry for almost half a decade, Kingfisher airline went into bankruptcy recently. Unstable top management coupled with some bad decisions hampered the growth of kingfisher Airlines. Constant change in the management, sudden shift from economy segment to luxury segment, a decision to buy Air Deccan even though Kingfisher was not making enough profits, lack of strategic decision from top management to tackle the soaring fuel prices tied with some other unhealthy decisions made them to face the contraction portion of business cycle. Kingfisher Airlines did not recover well from that stage and at the certain time even government denied to bailout kingfisher from bankruptcy, management staff went on indefinite strike because of the unpaid salaries, as time passed by customers started to lose trust and there were no hopes for kingfisher other than shutting down.