History
UPS started delivering packages by air as early as 1929 with United Airlines operating ford Tri-motors. UPS’s first airline venture started as a 50/50 partnership with DHL in a company called International Parcel Express (IPX). IPX hired a group of former Transamerica employees to gain the air carrier certificate. With 60 aircraft in the fleet of IPX by 1987, it was becoming difficult to manage with all the different contract carriers and aircraft. UPS announced it would be taking over all air operations in 1988 and using the IPX certificate as the basis for UPS airlines. UPS Airlines started on January 28th 1988. Ten months after receiving the operating certificate from the FAA, UPS Airlines had grown to an operation of 94 aircraft. UPS airline was the fastest growing airline in FAA history.
Financial performance and current economic standing
UPS has always been a cost conscious business. However, raising the necessary capital to compete on a global scale meant seeking additional revenue. In 1999, UPS held the largest initial public offering in US stock history. The once privately held United Parcel Service went public creating five and a half billion dollars of revenue. In addition, investors have watched the stock increased 26 percent since the initial public offering.
Route structure and airport hub strategies
UPS has seven regional hubs in the US with operations worldwide. UPS uses its own hub-and-spoke system to expedite its cargo around the world, but its principal hub is Louisville International Airport. The UPS air hub at Louisville is called Worldport. UPS selected Louisville has their hub for two reasons. First, because of its location as UPS can reach the majority of the US population within two or three...
... middle of paper ...
...n 185 countries reaching over four billion people.
Cargo Operations in the US
In 2003 in an unprecedented move, UPS teamed up with rival FedEx to keep DHL from entering the US parcel market. DHL had purchased Airborne Express in an attempt to enter the US market. UPS and FedEx identified that DHL would distort US competition because DHL could subsidize its competitive activities with revenues gained from its postal monopoly in Germany. Unable to compete against the two US shipping giants, DHL announced in 2013, it would close its North American operations. In May 2013 DHL started outsourcing some of its operations to UPS.
In Conclusion, What is next for the shipping giant of UPS? In just 25 years UPS airlines has grown to be the second largest Cargo Airline in the world. Time will only tell what is next for the global shipping giant. “What can Brown do for you?”
In early August of 1997 the United Parcel Service (UPS) had a predicament on its hands, a teamsters strike. UPS, the world’s largest package distribution company was coming off a year [1996] in which they reported sales of $22.4 billion. UPS Employed 75,000 management and non-union employees compared with 185,000 teamsters who are part of the AFL-CIO that were going on strike. The teamsters rejected a contract extension offer from the company leaving the fate of millions of packages carrying everything from lobsters to laser printers up in the air (Johnson).
Delta Airlines was founded by C.E. Woolman, who was an agriculture extension agent. He was not as aggressive,
Frontier airlines marketing utilizes the 4Ps within the constraints that were listed in the module slides. The product, for all intents and purposes, is the seat, in motion from one place to another. If that seat goes unfilled, it is not stored for later use, but goes bad, like fruit. This is a similar issue of production that hotels face. The unit is constantly produced and expiring, with no option not to produce it if it will not be sold (with the exception of scaling back service on, or closing, a route. Additionally, it is a consumer based product, so frontier needs to be sensitive to the desires of the customer, because there are many choices when flying into and out of Denver.
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
The original Frontier Airlines was Denver's hometown carrier for 40 years before it folded its wings in 1986 following its purchase by New Jersey-based People Express. The former Frontier carried 87 million passengers over the years and was nationally recognized for both the quality of its service and its outstanding safety record.
IT management also prepared UPS for BCP-DR to avoid downtime. UPS’s IT infrastructure allowed customisations to incorporate unique functional requirements of customers. UPS also reduced its application development time by reducing rework. It created reusable modular applications. UPS has been very receptive towards the opportunities created by the IT to boost its core business. Even after this UPS was not able to keep up its pace with every valuable system development request. By 2000, UPS had a major share in domestic integrated package delivery services, but had an insignificant share in international, though the international market was growing at a double-digit rate. Therefore, the UPS management decided to allocate IT resources to the most strategic opportunities and preserve as appropriate via infrastructure
Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.
FedEx’s modeling capability gave them a competitive advantage as they implemented new methods and technology. They currently have a SuperHub with several regional hubs and packages are managed and tracked by a system called COSMOS. This system allowed customers to know where their packages were at all times and was later integrated for web use, allowing customers to track packages over the Internet. Today, UPS also allows customers to track packages over the Internet and has improved customer service. I would assume that they have developed a mainframe similar to that of FedEx to decrease FedEx’s competitive advantage. The United States Postal Service, which has lower rates, has also increased their customer service and quality. FedEx must find new technological advancements to stay ahead of the competition in the package delivery industry.
Airborne Express ranked third place in the 2002 U.S. air express industry with nine percent (9%) of the market and it has difficulties catching up with its larger rivals, FedEx and UPS which has 26% and 53% of the market respectively.
Northwest Airlines began service on October 1, 1926, flying mail between Minneapolis / St. Paul and Chicago. (2) They started passenger transportation in July 7, 1927. (2) Throughout the years Northwest has grown steadily by acquiring new system routes in the northwestern region of the USA.
Shortly after World War I, the U.S. Government discovered the abilities of the modern airplane and created the idea of utilizing aircraft to transport mail across the country. In 1917, Congress approved funding to experiment with the idea of delivering mail by air. By 1920, the Post Office was delivering mail across the entire country, eliminating over 22 hours in delivery times of a coast-to-coast route. With the success of the airmail service and the growing popularity of civil aviation, the U.S. Government recognized the need to develop set standards for civil aviation and in 1926 created the Air Commerce Act of 1926. The Air Commerce Act of 1926 called for the government to regulate air routes, navigation systems, pilot and aircraft licensing and investigation of accidents. The act also controlled how airlines were compensated for mail delivery. Later in 1930, Postmaster General Walter Brown made recommendations which were later known as the Watres Act which consolidated airmail routes and opened the door for longer-term contracts with the airlines. Brown handled the situation regarding new contracts poorly by only inviting a hand selected list of large airlines to the negotiation table. This move pushed smaller airlines to complain and the issue was pushed to Congress. Following congressional hearings President Roosevelt later decided Brown’s scandal was too much to deal with and canceled all mail contracts completely and handed over air mail delivery responsibility to the U.S. Army. That decision was a disaster, and one month later, air mail was handed back over to the private sector. This time, however contract bidding was more structured and fair to all. It was then clear that the airline industry was back in full swing...
The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. Apart from his own investment, $4 million, Smith raised over $72 million in loans and equity investment within the first year. Though the company did not show a profit until July 1975, primarily due to the oil crisis, Federal Express soon became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.
FedEx is one of the world’s largest freight companies it is based in Memphis, Tennessee and employs more than 290,000 employees and contractors worldwide.
UPS was founded in 1907 as a messenger company in the United States and now
After a while, they have realized that the airline has more capacity to carry passengers. So they hired a flight attendant to help passengers and created an air carrier for passengers transport. On 1930, UATC created an airline based in Chicago and called it National Air Transport Inc., which is a bigger airline with a larger fleet. After a while, UATC needed a company to organize its operations and branches, so they created a company called United Air Lines Inc.