National Air Express Case Study Essay

“A Tale of Two Airlines” is an article written by Christopher Elliott to educate to economy on travel planning. He was born on May 31, 1960. He is a journalist and consumer advocate who writes for people who want to become more informed travelers (www.nbcnews.com/id/10912488/ns/travel/t/Christopher-elliott/#.Vc_RIO9RGM8). He is known for his many articles with the National Geographic Traveler Magazine and being a travel columnist with the Washington Post and USA Today. A Tale of Two Airlines or is Good Vs Evil in the air; Southwest Airline vs Spirit Airlines.

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.

If Mark and Todd choose this option, they could budget accordingly each month. If they are struggling they could forgo the additional principal payment during any given month. By choosing this option, S & S Air could save money and have flexibility in the mortgage payments.

Q1) What is the industry attractiveness like in 1997? Has it changed in recent years?

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.

As the new president of the airline, Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts.

Firstly, Airborne Express chose its customer very selectively and pursued a emphasis on low price strategy. The main target customer for airborne was the high volume, frequent, service; consistent with flexible environment and price is the main competitive weapon. Airborne was essentially the custom solution logistics providing for larger companies and therefore, they did not target the masses. By focusing on large accounts, Airborne could use its ground capacity more effectively. Airborne delivery drivers dropped off and picked up far more packages per stop than do the drivers of companies that focus on serving smaller customer and individual customers. This helped boost productivity and lowers costs and make a profit at a price. Secondly, the strategy of concentrating on corporate account was strong point, since it leads to better capacity of operation and lowers the cost. The company’s incentive systems were designed to rewards employees for meeting the dual goals of high productivity and reliability. Airborne’s national and international tracking systems were the best in the industry. These assisted Airborne to tell customers at a moment’s notice where in the system there packages are. This helped improve reliability and build brand loyalty. The same information systems helped Airborne to efficiently manage its billing system, thereby lowering costs.

The purpose of this memorandum is to address the profitability issues at Continental Airlines and to estimate the costs for 2009 to forecast the future outlook of the company. To address these issues, I used regression analysis to observe what effect the 11% reduction in flying capacity would have on the firm’s future operating costs. I also used the results from the regression analysis to verify the costs that, if reduced, would further comply with the implementation of cost-cutting initiatives and operational efficiencies that the company is striving for. Lastly, I consolidated the data to forecast Continental’s financial outlook for 2009, then provided insight

Because technology has transformed the way many businesses operate, there are now fewer reasons to travel for business when one can effectively facilitate meetings remotely such as using video conferencing. This has reduced the number of diverter travelers so that companies can save or reallocate monies previously set aside for travel. Competitor innovation or pricing changes cause additional uncertainty. From a risk perspective, Piedmont will have to assess the impact if fewer diverters decide to travel at the last minute, which would be the worst-case scenario with fewer discounted fares available. Continual evaluation of the Revenue Enhancement Department’s process for discounted seating allows Marilyn to assess the potential of lost revenue.

Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance-based pricing puts Airborne in a dilemma in which they must choose to match the competition which will make them lose what sets them apart in the market or stay with the current strategy. Changing will increase their flexibility and could open them up to new consumers while staying the same

The company's internal strategies stand in response to the conditions of the external environment. The airline industry in the United States is a difficult one in which to operate. Fixed costs associated with

1. From the point of view of the industry incumbents, is the express mail industry attractive? How has Airborne survived, and recently prospered, in its industry? Is its success attributable to its capabilities, its position, or industry attractiveness?

In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the