The Air Travel Market Through Its Flight Efficiency Services

The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth,

o “In March 1984, … they finally agreed tentatively to lease and remodel Newark Airport’s Terminal C.” (p. 14)

On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.

The bulk of aviation demand models have been of the multiplicative form to utilize that

Meanwhile the external analysis refers to the people and the process that are outside the organisation and it most unlikely that this factor can be controlled by the organisation. External Analysis can be assessed by using PESTEL.

of price versus service in the airline industry as a whole, as well as, the

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.

level of 30 years ago (BA Fact Book, 2002). The birth of the low cost

In terms of liquidity Delta is not doing so well. Their current ratio has deteriorated consecutively the past four years and is the lowest in the past decade at .49. Delta’s Quick ratio of .35 reported in the last quarter is concerning considering anything below 1 may be an indicator of bankruptcy. Furthermore, their quick ratio has decreased by an annual average of about 5% in the past decade. (The quick ratio is particularly important in evaluating a company in the airline industry because they are capital intensive.) While the industry generally has lower quick ratios than others, Delta’s is significantly lower than the industry average reported in 2012 as 4.68.

This innovative work allows for quicker turnarounds between flights and helps increase revenues. In addition, AirAsia is also able to leverage on innovative ideas to derive substantial ancillary revenues from additional services. For instance, the company also have their own branded credit card and offers corporate travel services. Consequently, it also develops aircraft advertising by converting its planes into “flying billboards”. The ability to innovate and come up with unique innovations to lower costs and increase revenues shows that AirAsia possesses substantial quality innovation resources that are

Leading airlines globally are using the most innovative technology to optimise labour productivity and overall business

Over the past few decades, technological advancements in both communication and transportation has led to an era of interconnectedness known as globalization. The emergence of air travel in the late 20th century led to an affordable and time efficient method of transportation. Due to this, air travel quickly arose as an essential factor in the world economy. Following the emergence of aviation, world economies became tied together and utterly dependent on each other. However, the very thing that fuels our globalization is also the very thing that fuels our destruction. Commercial aviation is one of the fastest growing sources of greenhouse gas emissions and yet a critical component of the global economic infrastructure. In the last 10 years the rate at which air travel has been increasing has grown at an astonishing rate. Today, the airline industry is responsible for a total of 4.9% of all human-caused climate impacts worldwide, including the emission of greenhouse gases such as CO2, O3, CH4, NOx, H2O vapor, contrails, SO4 and soot. The pace at which we see these adverse effects is very startling yet, business and life is so dependent on air travel. Air travel is essential for large scale institutions and businesses that are relevant on a global scale. The University of Maryland is a perfect example of an institution where air travel is a big portion of its annual carbon emission. Improving plane infrastructure, implementing fuel alternatives, and changing cultural habits

Increasing deregulation and liberation of the airline industry have in the past decade triggered fierce competition among airlines in key markets such as Europe and Asia. Traditional airlines mainly in Europe no longer dominant the global market like they once did. Relatively newer airlines such as Emirates Airlines from UAE now constitute key competitors. In light of the intense competitiveness that characterises the current airline industry, managers have been compelled to redesign their business models in order to increase market share and maximise profits. Some airlines have for instance adopted a low cost strategy that seeks to exploit economies of scales while at the same time offering no frills products and services.

Solution#1: Utilizing a global distribution system (GDS) that provides accurate and real-time data could enable airlines to cut costs by planning and allocating resources more efficiently. A GDS is basically a reservation system that connects and collects data from airlines, hotels and other travel service reservation systems. One of such system is SABRE (Semi – Automatic Business Research Environment), which among the many functions is capable of calculating oil prices, the most efficient routes for flights, as well as estimating last minute available seating on flights, tourism trends, determining the best size of the aircraft to use for specific routes, and how much freight to put on a flight. The use of a system like SABRE could help reduce the costs of flying airplanes with empty seats, maximize cargo capacity on each flight, calculate and adjust pricing according to cost such as oil prices, reduce downtime and improve passenger satisfaction through more frequent on-time arrivals and departures. It could also improve the efficiency of maintenance operations by recording and transmitting data about performance issues while the aircraft is still in the air. By identifying the mechanical issues

Singapore Airlines is one of the world 's leading carriers with an advanced fleet and it is internationally respected as the innovative market leader combining a quality product with excellent service .Being a international company in the competitive International business environment ,it has to face a number of competitions ,challenges ,changing environmental trends and options .To deal with these issues ,SIA pursue a number of management strategies while maintaining it’s key resources and secret of success. This report will analyse the Singapore Airline’s corporate strategy ,business environment ,key resources,key success factors and issues facing by the company.