Kingfisher Airlines Case Proposal

Danville Airlines has created an ethical and legal dilemma by not being accurate, precise and clear on how they are doing medical testing, causing undue stress and potentially career-ending circumstances for David Reiger, one of their best pilots. What Danville did was illegal and unethical due to negligence. David Reiger has every right to sue them to continue flying, and the medical evidence suggests that the Huntington's disease gene can be dormant for decades before being active and changing a person's nervous system (Darden, 2004). The company has violated the 1974 Privacy Act, the Heath Insurance Portability and Accountability Act of 1996, and the 1990 Americans With Disabilities Act. As is best practice with the nascent, emerging field of genetic testing, Danville did not warn Reiger of the testing taking place, did not get his permission, and didn't even have a process in place for dealing with pilots, whom the traveling public relies on for safe transport, when they are tested positive for these types of diseases (Murry, Wimbush, Dalton, 2001). Clearly Reiger would win any lawsuit, the collateral damage to Danville being the lack of oversight and gross negligence in managing health screening.

1. United Airlines is owned by the UAL Corporation and was incorporated on December 30, 1968. The actual company was formed may years before this actually in 1925 and was a private mail carrying service between Pasco, Washington, and Elko, Nevada, and from these humble beginnings they formed a were able to start a company that would come to be a global leader in the airline service. From the 1960’s to the 1980’s the company had 6 different presidents and started to expand and venture into different aspects of business other then airlines and were unable to have any success. These companies that they purchased were not a success and were later resold.

JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.

For the engine cost, there is also a positive correlation thus; increase in this cost may also vary in the increase in average age of fleet per hour. However, on this cost, only 61% is determined in the regression equation. Like in the airframe cost, there will be additional 2.6 in cost for every hour of average age in thousands.

Qantas’ downfall in sales/gearing in 2009 due to the GFC. This year Qantas’ decided not to pay dividends and instead took the retained profits and spent the capital on new aircraft and renewal within the business in order to increase revenue.

The airline is state owned enterprise so they need to adhere to the supply chain prescripts when procuring services as legislated by the Public Finance Management Act. The supply chain procedures needs to be fast paced and respond to the needs of the changing environment that the airline operates under. Inappropriate conduct should be dealt with in accordance with the

The primary inputs to the airline industry include airplanes, labor and fuel. There are only two major manufacturers (three at the time of the case – Boeing, Airbus and McDonnell Douglas) for large commercial aircraft. This, along with the relationship specific

King launched their Survival plan— “tough, unpalatable and immediate measures” to stem the spiraling losses and save the airline from bankruptcy. The radical steps included reducing staff numbers from 52,000 to 43,000, or 20 percent, in just nine months; freezing pay increases for a year; and closing 16 routes, eight on-line stations, and two engineering bases. It also dictated halting cargo-only services and selling the fleet, and inflicting massive cuts upon offices, administrative services, and staff clubs.

By looking at all the data showed by the case we can realize that the worst company in the industry of aircraft manufacturing was McDonnell Douglas because it confronted serious financial problems since 1980s when Airbus squeezed its market share. In 1984, MD's fleet comprised 28% of aircraft in service, by 1989 had only 23% of the worldwide fleet, while for example Boeing had 53% in the same year; in 1990 Boeing had 45% of the market share while Airbus had 34% leaving only 21% of the market to MD. The strongest company was Boeing which cover about 70% of worldwide demand, nevertheless the Airbus Industry was

JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.

Lucky Air being new in the field and operating on a small geographical area has to burden a lot of costs. The restriction on expansion of the company makes it necessary for the airlines to lease the airplanes at a high cost and the taxes ranging from 2%-10% makes it a challenge to manage its finances. The monopoly of ‘Civil Aviation Oil’ for fuel and “National Development Reform Commission’ for aircraft leasing puts a burden on the budget of the airline companies as they may dictate the terms of their services as they see fit.

Scandinavian Airlines serves 32 million people and is the largest airline in Scandinavia. It has been a first-mover in many areas and has built a positive reputation for corporate responsibility. Having decided to update its fleet with 55 Boeing 737s, SAS now has to decide whether to purchase DAC green engines.

The airline industry can be considered an imperfect oligopoly. There are several large carriers that dominate long distance flights, and many small carriers that compete for short distance flights. Competition is fierce, and the return for most carriers is very low. Some airlines are trying to differentiate themselves, like JetBlue for example, by offering superior services at low prices. Other low cost airlines, like Southwest, offer low costs with no frills. Most airlines offer a frequent flyer programs in order to develop brand loyalty. In recent years there has also been several alliances formed between airlines. These alliances enable

Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today, "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." This motto has been effective for the company because they recently reported their 58th straight quarterly profit.

The purpose of this paper is to evaluate the business strategy of JetBlue Airways. JetBlue was founded by David Neeleman in 2000 and quickly became one of the largest discount airlines in the United States. It was started in the east coast primarily and expanded throughout the country and entered the international market soon after that. JetBlue received the “#1 Airline Brand” rating10 even while keeping its advertising costs significantly lower than Southwest Airlines. Jet Blue’s talent in formulating and executing effective strategies has enabled the company to rapidly grow in the domestic and international market base.