The American Airlines established in 1930 in Texas remains to be the biggest airline today based on revenue, the number of passengers and destinations covered. It covers approximately 350 destinations in different countries across the world (Harlan, 2015). Despite that, the airline has experienced a fair share of challenges including coming close to bankruptcy in 2003 and facing employee upheavals. In 1946, the airline experienced its most extensive expansion program when it acquired 220 planes for the fleet. The logistics associated with the growth was problematic for the airline, mainly when taking reservations. Passengers had to call the airline offices to make a reservation and in other instances visit the nearest ticket office. The staffs …show more content…
In a quest to reach many passengers, American airlines stills use travel agencies and third-party channels. Even after the introduction of SABRE to travel companies, they are required to use the system for American Airlines alone. For example, they cannot use the system to reserve seats from a different airline company and therefore it makes their work complicated. The airline employs Global Reservation System (GDS), which allows travel companies to access the American Airlines’ reservation system to book seats, hotel and vehicles. Although the system is more expensive than online booking, the airline prefers it because it encourages human interaction among …show more content…
The airline operates both local and international flights daily to different destinations. The regional flights from the US to Puerto Rico and Canada are the most popular and generate the most income for the Airline. In the year 2016, they amounted to revenue of 87 million compared to trips to Latin American countries, which produced 20.8 million. Moreover, the flights across the Pacific generated 8.5 million while those across the Atlantic yielded approximately 19 million to the company. The most popular local destination for the airline includes Texas where the airline flies more than 56 million people making 284,223 departures annually. Florida follows it with 42 million people with about 231,591 departures whereas Philadelphia flies over 23 million passengers comprising of 156,456 departures annually. The airline operates flights to more European destinations having about 130 departures on a daily basis (Koenig,
Before the merger, American Airlines served more than 270 airports in over 50 countries, boasting combined fleet of 903 aircraft, with operating revenue of $25.76billion in 2013.2 US Airways served more than 207 airports in more than 20 countries, controlling a fleet of 621 aircraft, with operating revenue of $13.05billion in 2013.2 Together they have the opportunity to make more than 6,700 daily flights to 336 locations in 56 countries worldwide, earn upwards of $40billion in operating revenue, and employ over 100,000 employees.3
Inbound logistics – Low cost, simple to use cost effective reservations system, ticketless travel, pre-assigned seating, paperless cockpits, search engine optimisation and BlueTurn; for minimising ground time.
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
The American Airline Industry The Airline Industry is a highly competitive industry with companies operating in domestic and/or international markets. Many airlines are stilled owned by their respective countries and have treaties between countries to allow airlines to land there. The industry has been taking a relatively shaky course as costs are rising and profits have been decreasing. This was further intensified with the recent terrorist attacks on US soil, which lead to higher costs as the need for more security arose. Recent financial statements of major airlines showing major losses reflect the problems that the industry is having.
www.southwest com./about_swa/airborne.html www.southwest.com/about_swa/press/3q00earn.html# Statement of Income www.southwest.com/about_swa/press/3q00earn.html#Operating Statistics www.southwest.com/about_swa/press/3q00earn.html#Balance Sheet www.southwest.com/about swa/aboutswa.html www.southwest.com/about_swa/press/07 1300 new flights.html www.southwest.com/programs_services/factssheet html#Top Ten Airports www.southwest.com/programs_services/mission.html www.southwest.com/about_swa/press/3q00earn.html Strategic Management – David Fred – 7th edition – Brenty’s Hall Notes from the lectures during the semester about the schedule and the way the analysis of the case should be.
The major point of focus, which these two companies are trying to do by merging, is to establish the largest airline network that would be very influential in the airline market. The newly established American Airline has the capacity of operating 6,700 daily flights and this makes it the most prominent and influential global airliner (Karp 1). Its operating presence in more than 50 countries worldwide adds to the network it intends to establish. The 6,700 daily flights make it presence prominent across all the 330 destination points it operates in worldwide.
Perhaps Robert Crandall's greatest contribution to the success of American Airlines was his vision in propelling the SABRE Group from an internal division of the company to one of the world's largest, privately owned computer networks. Conceived in 1959, the Semi-Automatic Business Research Environment served as an internal link between American's offices and ticket counters to help track reservations. When talks aimed at developing an industry-wide reservation system, broken down between travel agents and major carriers in the mid-1970’s, Crandall successfully marketed his airline's computer system throughout the world.
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
When analyzing Delta, you do not have to search very far before quite possibly one its strongest attribute rears its head. Based on calendar 2000 data, Delta is the largest U.S. airline in terms of aircraft departures and passengers enplaned, and third largest as measured by operating revenues and revenue passenger miles flown. Delta is the leading U.S. airline in the transatlantic, offering the most daily flight departures, serving the largest number of nonstop markets and carrying more passengers than any other U.S. airline. Delta Air Lines transports more passengers worldwide than any other airline. Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
Mason, K. J. (2001). "Marketing low-cost airline services to business travellers." Journal of Air Transport Management 7(2): 103-109.
number topped 650 million. All other factors being equal this would result in more passengers
In order for revenue management to be successful, four fundamental conditions must be met. The first requires a permanent amount of supply available for sale. Meaning, a fixed amount of seats per aircraft should be available per route. Second, resources sold must be perishable. Seats are a perishable items, if not sold they terminate without value. Third, the most vital portion of r...
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
United States Department of Transportation (2013). Total Passengers on U.S Airlines and Foreign Airlines U.S. Flights Increased 1.3% in 2012 from 2011 | Bureau of Transportation Statistics (press release BTS 16-13). Retrieved from http://www.rita.dot.gov/bts/press_releases/bts016_13