Moreover, as Alaska Airlines entered the 1990’s, the success of other low cost airlines
required continual improvement and a renewed focus on customer service and value.
Consequently, Alaska Airlines endeavored to keep its competitive edge and continue to grow,
expanding across the lower 48 and to Hawaii during the 2000’s. Also, harking back to Mac
McGee’s fleet of 7 identical aircraft in an effort to streamline service and support, the 2000’s
saw the push toward an all-bowing 737 fleet (Alaska Airlines history: Mac McGee).
Transitioning to a single aircraft fleet has yielded immense savings through commonality of parts
and processes across maintenance requirements, as well as reduced training requirements for
ALASKA AIRLINES PORTFOLIO REVIEW
pilots, aircrew and ground personnel (Alaska Airlines: History by decade). Furthermore,
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continuing growth and innovation over the past decade has seen Alaska airlines guide the
industry in technology with an industry leading mobile application, electronic publications for
pilots, and new next generation aircraft acquisitions to carry the airline proudly into the next 75
years of service (Alaska Airlines: History by decade).
Financial performance and economic standing
Overview
Financially, Alaska Airlines is a strong performer in the modern airline marketplace,
having come a long way from its storied Alaskan bush plane roots. Today, Alaska Airlines is the
7th largest US air carrier and is
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.
Alaskan Airlines is a company that is known for their innovations and leadership within in the aviation industry. Alaskan Airlines is easily identifiable because of the smiling Eskimo on the tail of
Classic Airlines put together a team to reduce overall costs by 15% and address several concerns including employee morale and customer retention. The team faces the challenge of convincing senior leadership to look beyond the bottom line becoming a customer focused organization. The team also faces the challenging of making changes without increasing costs, cutting salaries, or damaging the reputation of the company in the eyes of shareholders, customers, or employees. The paragraphs below utilize a problem solving process to tackle these challenges.
The joined aircraft is required to keep up all center points presently served by American Airlines and US Airways, bringing about more travel choices for clients. Both aircrafts expect that the territorial bearers they claim – AMR Corporation's American Eagle and US Airways' Piedmont and PSA – will keep on working as unmistakable substances, giving consistent support of the consolidated carrier. The organization will be headquartered in Dallas-Fort Worth and will keep up a noteworthy corporate and operational vicinity in Phoenix.
The combination expands Alaska Airlines’ existing footprint into California, strengthens its platform for growth and evolve the company as a competitor to the four largest U.S. airlines. Combining Alaska Airlines’ well-established core markets in the Pacific Northwest and the state of Alaska with Virgin America’s strong foundation in California will make Alaska Airlines the go-to airline for the more than 175,000 daily fliers in and out of Golden State airports, including Los Angeles and San Francisco.
Currently, Alaska Airlines ranks among the major U.S. Airlines in terms of financial performance and capabilities. The airline itself has grown from a small regional air carrier to a large passenger airline with a considerable cargo business. The culmination of years of emphasizing the customer service and generating loyalty has manifested itself through Alaska Airlines documented profitability. The success of the airline also comes on its dedication to safety, a fact backed by the FAA’s Diamond Award, which recognized Alaska’s excellent maintenance and training programs. Additionally, Alaska has been recognized for its customer service, a fact that emerged early in the airlines history as the airline offered, and still offers, a means of travel for passengers and cargo in the harsh Alaskan terrain. This along with the largest cargo operation of any U.S. airline are driving factors behind the success of Alaska Airlines.
Flying is an inspiring part of American life. It’s a symbol of our freedom, pioneering spirit, and economic success. Civil aviation has outpaced the national economy as the nation continues to revitalize itself following the most recent recession. Flying remains an economic frontier for America. We see unmanned aircraft and commercial space launches on the horizon. Through these innovations, civil aviation will continue to inspire the next generation, and bring economic prosperity to our
This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.
1.) In early 2003, Boeing announced plans to design and sell an airliner named the 7E7. Boeing aimed for the 7E7 to be more fuel efficient, carry between 200 and 250 passengers, able to accomplish both domestic and international flights, as well as be 10% cheaper to operate than Airbus’s A330-200 aircraft. All of these attributes were attractive to Boeing but would come at significant costs. To accomplish these attributes, Boeing proposed to construct the aircraft
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
Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant
Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market
Upon review on a profile of a successful company we see Southwest Airlines as a prime example. Their ability to recognize weakness in their management system and adjust strategies has allowed them to emerge as a leader in the US airline industry. Southwest is the largest US low fare carrier with low fare rates, no additional fees and excellent customer service. Southwest Airlines currently has one of the most innovative management practices in the US to date. A review of the critical elements of Southwest Airlines proves to be effective and innovative.
In examining the history of aviation in the U.S. and the development of the airlines, it is clear that the Federal Government played a vital role in the development of both. Historical records clearly show that this involvement by the Federal Government was critical in getting them established and in helping to develop them into the globally dominant enterprises they are today. Furthermore, it can be easily argued that U.S. aviation as a whole, and the airlines in particular, would not be where they are today without this direct involvement by the Federal Government and some of the very specific actions that it has taken to keep them relevant and competitive during the most dire of times. The Federal Government ensured that U.S. aviation and its airlines would develop and achieve a worldwide leadership role by becoming involved in three major ways: through funding, legislation, and policy setting.
For over 75 years, Alaska Airlines has been guided by honesty, compassion, originality, proficiency, and a distinctive spirit. Alaska Airlines started in 1932 as McGee Airways by Linious “Mac” McGee. He painted “McGee Airways” on a three-passenger Stinson and began flying out of Anchorage, Alaska. In 1934, McGee combined with Star Air Service, with 22 aircraft, they became the largest airline in Alaska. In 1937, business expanded again with the acquiring of Alaska Interior Airlines. Later that year, McGee sold Star to one of his former pilots, Don Goodman, who renamed the company Star Air Lines. In 1938, the Civil Aeronautics Authority (CAA) was created to regulate airlines. In 1944, Star Air Lines changed its name to Alaska Airlines. The company grew despite a shortage of workers during the war and cash troubles that had