All airlines have several categories of assets and Horizon Air is no different. These include physical assets such as fleets and facilities, financial assets and human assets. However, for this discussion question, the focus will be on Horizon’s fleet, routes and hub structure.
Fleet Structure Horizon has had multiple fleet types over the years. At one point they operated a mixed fleet of five separate types consisting of Fokker F28s, Metro IIIs, deHavilland DHC8-100s, deHavilland DHC8-200s and Dornier Do328s. This multiple fleet operation was extremely expensive to maintain considering both flight crew and maintenance training as well as parts and supplies to maintain the aircraft. This prompted Horizon to simplify its operation and currently
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The average leg length for Horizon is 291 miles with service to 44 communities including seasonal travel and international locations in Southwestern Canada (Horizon Air, n.d.). In keeping with Horizon’s history of steady measureable growth, the Alaska Air Group (AAG) has released funding to expand Horizon Air’s fleet and route structure. In a recent announcement, Horizon Air has confirmed purchase orders for 30 Embraer 175s with options for an additional 30. This strategic move by the AAG will increase the range of Horizon’s current service area to 2,200 miles; effectively opening up the central United State for potential markets. The first deliveries of the new aircraft will begin in June of 2017 replacing 15 of the DHC8-Q400s whose leases will run out in 2018 (Horizon Air, 2016). This move to change the fleet mix serves a dual purpose: to expand Horizon’s market area and to reduce maintenance costs. On the surface the latter doesn’t seem logical; however, when you consider that regional carriers operate their fleets approximately eight to nine cycles per day, the high costs associated with 40,000-cycle structural fatigue inspections comes due in roughly 13-years (Bombardier, 2016). The average age of Horizon’s fleet is nine years so the business decision to purchase new replacement aircraft at this time is a sound
The new trend in airline industry to use fuel efficient, high -tech aircraft is of a major concern for Air Canada. It has been under immense pressure to replace its fleet aircraft with more efficient Boeing 777 aircraft. However, the airline has purchased some Boeing777 aircraft, but these new purchases are used only for more profitable international routes depriving Air Canada’s domestic consumers of the facility. Furthermore, the varied fuel price has affected pricing policy significantly as its promotional policies are more price point based as compare to consumer based.
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
Maintenance cost- Maintaining the old aircrafts is the biggest weakness for the airlines as they have to spend a huge amount on their maintenance by which their additional overhead cost raises.
As per research Bombardier has already been investing heavily to modify its products accordingly to meet the standard of global economy. To increase their procedures, they have joint various strategic alliances with businesses and formed several joint ventures. Bombardier has formed multiple alliances with different companies throughout the world, to ensure steady growth and sales. It has many engineering and manufacturing sites in many countries. Bombardier succeeded to expand its operations in: Europe, Asia-Pacific, North America and South America. In order to successfully strive in growing markets,
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
Southwest Airlines employees are its biggest strength. Their hiring process strictly ensures that only the best candidates are hired. Training is necessary to sharpen the skills of these employees. Its low cost approach is also a major strength as it attracts more clients. Staff members need to be trained to improve efficiency so that the company can remain profitable even after charg such low prices. Finally, Southwest Airline only purchases Boeing airplanes to keep the repair costs at minimum. This is also a significant strength (Gittell,
Southwest Airlines: A Case Analysis. ORGANIZATIONAL ANALYSIS It is evident that the greatest strength Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
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. Not only is Delta a beast in the market it wields its power quite intelligently. Along with this momentous market share, Delta has enormous control over some of the nations key gateways. Delta controls 72 percent of the air traffic at Salt Lake Utah.
A switch from premium overnight services to lower – margin deferred services and ground delivery services is an advantage to Airborne Express. With existing assets including trucks, tracking systems, regional hubs and sorting facilities, they only need minor initial investments to develop fully these kinds of services. They should use these assets wisely and effectively.
The E190 CASM is approximately 12% higher than A320. The E190 RASM is 30% higher than A320. E190 also has significant lower acquisition costs compared to A320. This reduces the financial break-even point for the flight operation. Comparing to other regional jets, E190 also has 34% less fuel consumption and higher utilization (10-11 hours vs. 8 hours/day) while offering more seating capacity allowing Jet Blue to service wider range of destinations. Additionally, E190 and A320 both can be operated interchangeably during peak and off-peak hours depending upon the demand. Also, use of E190 to feed A320 customers improves utilization of existing airport facilities and reduced downtime for crew members. This synergy provided Jet Blue added flexibility and more efficient operation. These are some of the reasons why E190 makes it a more economical strategic choice as it is well aligned with the low cost element part of its business strategy and can continue to provide an advantage over its
Industrialized nations, including the United States, Great Britain, Germany, and Japan, innovated both rapidly and expansively following World War I. In some respects, the innovation of the interwar period of 1919-1939 was part of a larger, cyclical model of change in military organizations that has existed since the fourteenth century and continued to the present. In the twentieth century technology, scientific advancements and research, increased resources and funding, and expanded bureaucracy and specialization enabled an increase in both pace and complexity of such organizational change. Nowhere is this more true than the successful implementation of American airpower as an innovation.
The new entry is likely from rich Gulf nations, China, and India of low budget planes around the globe. The airlines from the Gulf nations have placed orders with Airbus and Boeing that are valued in the billions. The deliveries are expected in the next decade. The demand will grow in the production of advanced narrow-body airplanes, such as Airbus, A321 and Boeing, B737 Max. The growth that is expected in the next decade, more consumers will be flying to their destinations. The airlines in the United States are expected to have a profit margin over the next decade. Resulting, from economic growth, and the demand for aircraft service. Buyers are expected to have a lot of power in the next decade, resulting in bargain prices for buyers. The competition will increase with intense rivalry in the aviation industry. The contracts for the aircrafts are totally from airplane
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europe’s largest airline in 8 years (www.ryanair.com).
The main threats to the industry over the next five years are the rise in price of oil, legislation, the TSA, and labor costs. Each of these threats effect the scheduled air transportation industry not only endangers Delta Airlines but the entire industry. As the price of labor increases for ground operations and pilots this creates a burden on the industry by causing them to spend more to satisfy their labor requirements. The price of fuel increasing leads to the price of fuel to increase, which not only affects a single airline but every airline. With each time that the crude oil price rises the prices associated with the costs of refining the jet fuel as well as transporting it. These costs are distributed to each airline as they use this resource to transport passengers. As new politicians are elected to Congress and new administrators take charge of the FAA new regulations regarding this industry. These regulations affect everything from mergers to the airspace that the airlines operate in as well as what hubs and airports each airline operates out of. These factors are not issues that the industry faces, the TSA, the Transportation Security Administration, creates an unnecessary burden for the passengers attempting to travel from one location to another. The TSA inspections required before a passenger is allowed to board their respective flights allows time for each passenger to become frustrated with the amount of time they have to allot for inspection as well as the invasion of their privacy.
The SpaceX Falcon 9 rocket roars into space on a CRS-12 mission, with our experiment on board, destined for NASA's International Space Station on August 14, 2017. My heart pounded harder than the ground shook below me as the rocket fire tail pierced through the blue sky above me. The experiment is designed to examine the efficacy of different radiation-shielding materials on E. coli bacteria, and I aspire to use the results from this study make astronautics safer in a cost-effective way for future space expeditions. Prolonged exposure to ionizing radiation puts astronauts in hazardous carcinogenic conditions. Watching the needle weave in and out of the cotton clouds my memory faded and my world flashed back before my eyes.