Continental Airlines

Oligopoly Behavior in the Airline Industry. Case Analysis This case illustrates the pricing behavior of firms that are oligopoly whose market is characterized by the relative few participating firms offering differentiated or standardized products or services. Such firms in an oligopoly have market power derived from barriers of entry that wards off potential participants. As seen in the case, it is clear that because there are a small number of US Airlines firms competing with each other, their

military use commercial airlines for leisure travel, but also for troop movements through government contracts with major airline carriers. The last and most popular target market United should focus on is vacation travelers and retirees. Although elderly retirees may not want to travel much, United has a valuable customer base in recent retirees. Why focus on retirees? Retirees have the extra leisure time to travel. Based on the information available, United should continue to target the following

The U.S. airline industry has been in a chaotic state for a number of years. In 1993, a U.S. government report indicated that the industry had “Lost huge amounts of money in the past three years, and it has never made a sustained, substantial return on investment…” According to the Air Transport Association, the airline industry trade association, the loss from 1990 through 1994 was about $13 billion, while from 1995 through 2000, the airlines earned about $23 billion and then lost about $35 billion

Southwest Airlines None of the Southwest’s competitors can completely copy what Southwest is doing, because Southwest is a values-based firm. Southwest’s strategies can be imitated, but Southwest’s culture cannot be copied. I would like to explain what the values-based diverse firm looks like, how Southwest is values-based diverse, and why Southwest’s culture cannot be copied. The following are the relevant facts, the analysis, and justification using supporting evidence. What the values-based

None of Southwest’s competitors can completely copy what Southwest is doing, because Southwest is a values-based firm. Southwest’s strategies can be imitated, but Southwest’s culture cannot be copied. I would like to explain what the values-based diverse firm looks like, how Southwest is values-based diverse, and why Southwest’s culture cannot be copied. The following are the relevant facts, the analysis, and justification using supporting evidence. What the values-based firm looks like In Cascio’s

Business Strategy 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

of American Airlines, and how they are responding to changes in the marketplace to compete in the modern era. We will also analyze the advantages of rebranding efforts, the effectiveness of existing practices of the airline and how the airline may operate post merger with US Airways. By some measurements, the merger between American Airlines and US Airways will create the largest company in the world, thus positioning American Airlines to potentially become the most

CHANGE ANALYSIS- IMAGES OF CHANGE Major Changes in American Airlines (AA) The merger between AA and U.S Airways was necessary after chapter 11 of bankruptcy was filed. They had to get bankruptcy protection due to high cost of operation, labor relation problems, high fuel prices and a slowdown in travel demand. The merger was finalized in December 2013. Prior to the merger, AA struggled with the decision to use chapter 11 to cut cost thinking it could come out of its higher labor cost. However,

American Airlines 1992 Value Pricing Strategy Evaluate American’s 1992 announcement of a new rate structure: a. What changes did American make? To replace the old domestic air-fare system with 16 different prices, discounts, and restrictions that are constantly changing, American made four key changes to its fares. 1. Instead of 16 different prices, American simplified its pricing structure to include only 4 kinds of fares: a first-class fare, a coach fare that can be bought anytime before

headquarters Orbitz has 800 employees and 1,500 employees worldwide with offices in 20 countries Orbitz was initially created by a group of leading U.S. airlines in 1999 to take part in the quickly growing online travel industry. The airline investors in Orbitz comprised of American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines and United Air Lines. The Orbitz website was introduced in 2001. In November 2004, Orbitz was bought by Cendant and undertook responsibility for Cendant