Case Study : Sun Country Airlines Essay

Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.

This picture below shows the block of land that we will eventually sacrifice for a second airport, you would be surprised of how much land we have left…

The National Plan of Integrated Airport Systems (NPIAS) forever changed the way airports were classified when it was unveiled in 1982 (Wells, 2011). The aviation industry had grown significantly since deregulation went into effect, and a new system needed to be put in place that would distinguish airports with incredible growth and expansion from those that served niche markets or flight training (Wells). Under the NPIAS, airports were broken down into three major categories: commercial services airports, reliever airports, and general aviation airports (Wells). The following paragraphs describe the three categories of airports that were created by the NPIAS, and conclude with an airport that fits into that particular category today.

Experienced passenger growth for 60 of the last 61 months dating back to January 2010

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.

For instance, more merchandises are sent back and forth than any time before, and more relatively, a lot of travelers (tourists, businessmen, students in school exchange programs, military personnel, diplomats, sportsmen, etc) board planes back and forth in an unprecedented way.

Its operational capacity was severely limited by runway layout; Stapleton had two parallel north-south runways and two additional parallel east-west runways that accommodated only commuter air carriers. Denver’s economy grew and expanded greatly in the early 1980s, consequent to booms in the oil, real estate, and tourism industries. An aging and saturated Stapleton Airport was increasingly seen as a liability that limited the attractiveness of the region to the many businesses that were flocking to it. Delays had become chronic. Neither the north-south nor east-west parallel runways had sufficient lateral separation to accommodate simultaneous parallel arrival streams during poor weather conditions when instrument flight rules were in effect. This lack of runway separation and the layout of Stapleton’s taxiways tended to cause delays during high-traffic periods, even when weather conditions were good. Denver’s geographic location and the growing size of its population and commerce made it an attractive location for airline hubbing operations. At one point, Stapleton had housed four airline hubs, more than any other airport in the United States. In poor weather and during periods of hightraffic volume, however, its limitations disrupted connection schedules that were important to maintaining these operations. A local storm could easily congest air traffic across the entire United States.3

* Market. The market is a huge weakness with the economic downturn and people flying less, they are having a harder time to keep the basic fares down low enough for people to fly.

will continue to grow with the list of city destinations, and increase the service in those towns.

Another emerging trend in the past five years has involved the progress made on open skies agreements between the United States and other countries. Open skies agreements serve to liberalize Orlando International Airport transport markets between the two signing countries or parties in the agreement. These agreements remove government restrictions, such as limits to the number of flights any one airline is allowed to operate per week between countries. The removal of these limitations has opened some routes up to increased competition, by allowing Orlando International Airport to fly more frequently and making these routes more accessible. Orlando International Airport could not previously justify the capital expense of operating on routes with limited flights are now able to profit on routes with high demand.

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

“After September 11th, passenger traffic dropped off severely, causing the airlines to cut flights, layoff workers and park surplus aircraft” (College Grad, n.d.). Conditions are favorable for a turn around in passenger traffic. With the ever expanding world economy, business travel has become more necessary. One area that is not expected to grow is the domestic cargo segment in comparison to international cargo flights. Airlines need to examine the destinations where they fly. If one of the destinations becomes unpopular, then the airline will need to make adjustments or profits will suffer. A good example would be back in the late 50’s where one of airlines main destinations would have been Cuba.

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

*One method of adjusting the demand is that the airline company can reduce the price or offer promotions during the low peak season to attract

As a surplus unit, Singapore Airline has increased their net cash used in investing and financing activities. Stated in the cash flow, SIA purchase intangible assets, making new long-term investment, and also receiving interest from deposits and investments. This year 2013/2014, they making a lot if