...This report aim to address the public relationship outfall of United Airline by considering the issues and causes and choosing a recommended solution on the base of decision criteria. Methods used in this report include empirical and theoretical analysis. In aviation industry, airlines experienced a cost pressure and that is the main reason that they cut cost wherever possible. Ethical issues and stakeholders’ benefit would be considered and play key roles in decision criteria to value the solution. United Airline would be suggested to establish a temporary team to solve the short-term crisis and invest in customer service departments to prevent similar issues in the future. The balance between cost and profit would be achieved to save the reputation and earn the profit, which would maximize the stakeholders’ value. Limitation of this report could be found in the scope of decision criteria. Some main points are covered and other attributes are not. Introduction The purpose of this report is to deal with the customer service issues facing United Airline. The causes would be discussed and the decision criteria would be considered to measure the alternatives which could be taken to address these issues. Moreover, recommended solution would be derived as the best of the alternatives with supported reasons. Finally, suggestions would be provided on how to implement the solution as well as the related implications. Issues United Airline suffered...
Words: 2164 - Pages: 9
...Running head: FINANCE Multinational Finance Assignment [Name] [Institutional Affiliation] Multinational Finance Assignment Introduction This paper is based on the foreign exchange theories and the strategies used to minimize the risk of foreign exchange. The scenario is about the two multinational airlines. One is United States Airline and the other is Lufthansa (German) airlines. Both of them are exposed to foreign exchange risks as their transactions is in different currencies. In the scenario, U.S airlines has order from France the Airbus so, they have to pay France in Euro currency. However, United States airlines report their financials in Dollars. So, any slight change in Euro will impact the profits of United States Airlines. On the other hand, we have the case of Lufthansa Airlines which is purchasing a Boeing from USA and their reporting currency is Euro. So, both of the airlines are exposed to risks in the scenarios. This paper will address the foreign exchange theories involved in the case and strategies that will help these two airlines minimize their risk of currency fluctuations. The paper will also show calculations and the instruments used to minimize foreign exchange risks and calculating profits. Analysis of Foreign Exchange market theories in the scenario Foreign exchange market is the one which involves foreign currencies like euro, pounds or yen and it the one that is traded from local currency for e.g. the dollar. The network of...
Words: 1904 - Pages: 8
...Case 2 - Baggage Complaints: Descriptive Statistics and Time Series Plots Baggage Complaints: Descriptive Statistics and Time Series Plots Background Anyone who travels by air knows that occasional problems are inevitable. Flights can be delayed or cancelled due to weather conditions, mechanical problems, or labor strikes, and baggage can be lost, delayed, damaged, or pilfered. Given that many airlines are now charging for bags, issues with baggage are particularly annoying. Baggage problems can have a serious impact on customer loyalty, and can be costly to the airlines (airlines often have to deliver bags). Air carriers report flight delays, cancellations, overbookings, late arrivals, baggage complaints, and other operating statistics to the U.S. government, which compiles the data and reports it to the public. The Task Do some airlines do a better job of handling baggage? Compare the baggage complaints for three airlines: American Eagle, Hawaiian, and United. Which airline has the best record? The worst? Are complaints getting better or worse over time? Are there other factors, such as destinations, seasonal effects or the volume of travelers that affect baggage performance? The Data Baggage Complaints.jmp The data set contains monthly observations from 2004 to 2010 for United Airlines, American Eagle, and Hawaiian Airlines. The variables in the data set include: Baggage Scheduled Cancelled Enplaned The total number of passenger complaints for theft of...
Words: 1404 - Pages: 6
...United Breaks Guitars In March 2008, Dave Carroll, a musician from Halifax, NS and his band, the Sons of Maxwell, traveled from Halifax to Nebraska via O’Hare airport in Chicago. What happened on the journey became the subject of outrage, embarrassment, amusement, and transformed Carroll from country singer to customer service guru. Carroll claimed that his guitar was severely damaged by United Airlines baggage handlers at O’Hare. His attempts to pursue a damage claim with United having been frustrated, he posted two amusing videos about the incident on YouTube. The overwhelming response raised questions about brands and the nature of marketing communications in the internet age. The Incident and Carroll’s Response In Carroll’s own words, what happened was as follows: “In the spring of 2008, Sons of Maxwell were traveling to Nebraska for a one-‐ week tour and my Taylor guitar was witnessed...
Words: 3984 - Pages: 16
...(rectangle). The space will expand to accommodate your writing. Please use “Marriage at 30,000 Feet”as the basis for answering questions 1 through 5. 1. (35 points) Combining Continental and United Airlines is tremendously difficult, largely because of the enormous number of things two airlines may do differently. Employees from both Continental and United are working side by side to answer many questions. Will passengers board flights back to front or window, middle, then aisle? Will miniature ponies be allowed? What information will be printed on a boarding pass? What direction will dog crates be faced when loaded in to cargo? Continental and United business architectures are unique to each company. Describe specifically what “the new United,” as a merged airline, must do to form the business architecture for the largest carrier in the world. Make sure you include in your description the role of standardization and integration in transition from the current As-Is to the emerging To-Be business model. | 2. (35 points) Information technology tends to be the thorniest part of an airline merger. The flight information systems and the passenger information system are critical applications (systems) supporting airline operation. Jeff Smisek, Continental CEO, was named the head of “the new United,” and he has heard a lot about cloud computing and virtualization. Mr. Smisek has learned that competitors are implementing cloud computing and virtualization concepts to streamline IT...
Words: 1248 - Pages: 5
...Introduction It is a mandatory requirement for public companies in most countries to produce a financial report on a periodic basis for relevant regulatory bodies and shareholders. The financial report usually includes a director’s report, three financial statements and an audit report, as well as relevant notes to the accounts. This paper will look at the financial reporting practices of four companies in a comparative international context from a user’s perspective. This report was not completed to assess the performance of the selected companies. Instead the research objective of this paper is to analyze the annual reports of the four top tier companies in the global airline industry and observe which airlines disclose the most useful information, within their annual reports, for me as a user. How you read an annual report depends upon your purpose. As an investor, your purpose may be to assess: profitability, survivability, growth, stability, dividends, risks and other factors which may affect your investment in that company. This paper focuses upon five aspects of reporting within the companies’ annual reports that were the most relevant to me as a user: geographic segmentation, the auditor’s report, presentation, fuel risk, and the letter to the shareholders. Delta Airlines was chosen as the base airline to compare the other three airlines to; China Southern Air, Emirates Air, and Lufthansa Air. The analysis resulted in a very distinct successor. Emirates Air...
Words: 2459 - Pages: 10
...Harvard Business School 9-192-040 Rev. June 22, 1993 Accounting for Frequent Fliers By 1991, almost all U.S. airline companies offered frequent flier programs to their passengers. Under these programs, passengers could become members of a program where the miles they flew would be recorded and accumulated to earn free future flights. The proliferation and growth of frequent flier programs created concerns about the proper way to account for and report them in financial reports. The airlines, the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), and the Financial Accounting Standards Board (FASB) had each voiced concerns about measuring the expenses and reporting airlines’ obligations under frequent flier programs. The percentage of revenue passenger miles (the number of miles flown by revenue passengers including free-flight-award passengers; computed by multiplying the number of revenue passengers by the miles they have flown) flown under free travel awards was less than 5% for all U.S. airlines combined. However, on some routes for some airlines (U.S. mainland to Hawaii, for example) the percentage of revenue passenger miles represented by free flights exceeded 12%. And there was some evidence that the problem was growing. Background of Frequent Flier Programs American Airlines first introduced frequent flier programs in 1981. Initially the program was meant to be a promotional gimmick designed to attract more customers...
Words: 2444 - Pages: 10
...accounting firms. He wanted to conceal the actual nature of a fraudulent entry in the organization’s accounting records which ended up being unsuccessful. Luckily, not all of his employees obeyed his requests to cheat the system and the Touche Ross, the auditing firm hired by Cardillo was very careful to identify the fraudulent activity and Rognlien did not get too far with his scheme. The SEC was eventually notified and Cardillo Travel Systems eventually collapsed in 1986 and the company had to file for bankruptcy. Russell Smith worked for Cardillo as the controller and he was the employee that refused to follow Rognlien’s orders. He asked Smith to sign an affidavit which discussed a large payment of $203,000 Cardillo received from United Airlines. The CEO wanted everyone to sign off on the statement indicating that the payment received was for commission earned by Cardillo...
Words: 1924 - Pages: 8
...___________________________________________________________________________________________ English - Or. English DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS COMPETITION COMMITTEE DAF/COMP(2014)14 Unclassified AIRLINE COMPETITION -- Background Paper by the Secretariat -18-19 June 2014 This document was prepared by the OECD Secretariat to serve as a background note for Item IX at the 121st meeting of OECD Competition Committee on 18-19 June 2014. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. More documents related to this discussion can be found at http://www.oecd.org/daf/competition/airlinecompetition.htm. English - Or. English JT03358883 Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DAF/COMP(2014)14 TABLE OF CONTENTS Introduction ................................................................................................................................................. 3 1. Features of the airline industry ............................................................................................................. 4 1.1. Liberalisation of the air transportation industry .......................................
Words: 29874 - Pages: 120
...Case Study Report: Classic Airlines 1 A Case Study Report on Classic Airlines: Marketing Solutions Anthony Almanzar, Northeastern University Abstract The airlines industry has grown incredibly over the years. The rapid growth may limits the availability to stay competitive. Air carriers must use all possible resources to maximize growth and boots profits. Classic Airlines has the opportunity to develop a new strategic marketing plan that will make them succeed in today's competitive world. Introduction Classic Airlines Classic Airlines is experiencing several organizational issues due to the fact that their long-term marketing objectives are not being met. Customers are not satisfied with their services and they are considering services provided by other airlines that meet their expectations. Sales revenues, profits and stock prices are declining. A new marketing strategic plan is required in order to attract and retain costumers while boosting sales and profits. "Marketing looks at consumer needs and the company's ability to satisfy them." (Kotler et al., 1991, p.37). Therefore, Classic Airlines must stress on creating a new plan that will help them meet their long-term marketing objectives. Case Study Report: Classic Airlines 2 The Current Situation Classic Airlines is facing numerous challenges "because of rising costs and lack of innovation" (Tokhi., 2009, p.1). Internal disagreements between managers have arisen. "Employee morale is low as due to finger pointing...
Words: 1284 - Pages: 6
...INTRODUCTION TO MANAGEMENT Semester 2, AY2011/2012 Individual Report A Report on Southwest Airlines Prepared for: Mr. Balasubramanian Shankar Due date: Monday, 5th October 2015 Submitted by: Jiyeon | CT00000000 | TABLE OF CONTENTS 1. INTRODUCTION 2 2. COMPANY BACKGROUND 3 3. PESTEL ANALYSIS 4 3.1 Political 4 3.2 Economic 4 3.3 Social 5 3.4 Technological 5 3.5 Environment 5 3.6 Legal 6 4. PORTER’S FIVE FORCES ANALYSIS 7 4.1 Threat of New Entry 7 4.2 Threat of Substitution 7 4.3 Buyer Power 7 4.4 Supplier Power 8 4.5 Competitive Rivalry 9 5. STRATEGIC RECOMMENDATIONS 10 5.1 Managing Technology Advancements 10 5.2 Maintain Cost Advantage 10 5.3 Geographical Expansion 10 5.4 Product Diversification 11 6. CONCLUSION 12 7. REFERENCES 14 1. INTRODUCTION The focus company in this report is Southwest Airlines (SA), a major low cost carrier in the United States (US). The aim of this report is to examine the current market environment and competitive power of Southwest Airlines. In order to have a substantial overview of its environment, two analyses, the PESTEL analysis and Porter’s Five Forces analysis, will be used to evaluate SA. With the findings, strategic recommendations will be made for the problems that the airline is facing or may encounter in the near future. 2. COMPANY BACKGROUND Southwest Airlines is a budget airline established in 1967 by Rollin King and Herb Kelleher and had its...
Words: 3086 - Pages: 13
...CONFIDENTIAL EXPERT REPORT Research Study of the Civil Aviation Sector in India SUBMITTED TO: The Ministry of Corporate Affairs, Govt. of India, India SUBMITTED BY: Nathan Economic Consulting India Pvt. Ltd., India www.nathaninc.com January 24, 2012 CONFIDENTIAL Table of contents 1. 2. 3. 4. 5. Executive Summary ................................................................................................................................. 1 Introduction .............................................................................................................................................. 7 Market Structure and Competition Issues ......................................................................................... 11 Identification of Anti-Competitive Provisions and Practices ......................................................... 15 Analysis of the Identified Issues .......................................................................................................... 24 5.1 Fleet and Equity Requirements ................................................................................................................... 24 5.2 Route Dispersal Guidelines......................................................................................................................... 29 5.3 Slot Allocation ..............................................................................................................................................
Words: 21810 - Pages: 88
...American Airlines Strategic Report for American Airlines Jed Cullen Kevin Yamazaki Deirdre Chew April 7, 2010 April 7, 2010 Page 1 American Airlines Table of Contents Executive Summary ............................................................................................ 3 Company History................................................................................................. 4 Financial Analysis ............................................................................................... 8 Current Financial Position.................................................................................. 8 Industry Comparable Analysis ......................................................................... 12 Stock Performance .......................................................................................... 14 Management and Analyst Outlook................................................................... 15 Competitive Analysis ........................................................................................ 16 Internal Rivalry ................................................................................................. 17 Supplier Power ................................................................................................ 18 Buyer Power .................................................................................................... 19 Entry and Exit ..............
Words: 8571 - Pages: 35
...Southwest Airlines Culture, Values And Operating Practices Essay retrieved from http://www.antiessays.com/free-essays/12682.html Case Study Southwest Airlines: Culture, Values and Operating Practices (in Thompson, A. A., Strickland. A. J. and Gamble, J. (2005) Crafting and Executing Strategy (Fourteenth Edition), McGraw-Hill, New York, pages C-636– C-664). Tasks The case study, prepared by Arthur A. Thompson, University of Alabama, and John E. Gamble, University of South Alabama, focuses on the rise to business prominence of Southwest Airlines, a regional airline with a low-cost no-frills approach. Based on the case study, and on online and offline research into Southwest Airline’s current state, complete the following Tasks: Task 1 - 20 Marks Provide an analysis of the company’s: • Potential resource strengths and competitive capabilities • Potential resource weaknesses and competitive deficiencies • Potential market opportunities • Potential market threats at the time this assignment is undertaken. Select suitable analytical tools from the text-book/course to help you structure your findings. Task 2 - 20 Marks On the basis of the critical factors identified in Task 1. a) Draw conclusions concerning the company’s overall situation. b) Suggest actions for improving the company’s strategy. Task 3 - 30 Marks Answer (in essay form) the following: It has been said that “talented people in possession of superior intellectual capacity are not only a resource...
Words: 616 - Pages: 3
...Confirming Pages Case 3 United Breaks Guitars John Deighton Leora Kornfeld On July 8, 2009, United Airlines offered professional musician Dave Carroll $1,200 in cash and $1,200 in flight vouchers to ‘make right’ a situation in which his guitar had been damaged at Chicago’s O’Hare airport during transfer from one airplane to another, in full view of passengers seated in the plane. Carroll had spent 15 months seeking compensation, but the effort appeared to have reached an impasse when a United Airlines customer service representative told him that the airline had concluded that the damage was Carroll’s responsibility and that she considered the matter closed. He replied that in that case he would be composing three songs about his experience and posting them to the video-sharing site YouTube. The first song was posted on July 6, 2009. At the same time, he wrote a blog entry detailing the ordeal and posted the link to the YouTube video on his Twitter account. Within a week the video had been viewed three million times, and United Airlines had reached out to Carroll to offer the compensation. Online and offline media helped propagate the story. On July 22, 2009, The Times of London wrote that “the gathering thunderclouds of bad PR caused United Airlines’ stock price to suffer a mid-flight stall, and it plunged by 10 percent, costing shareholders $180 million.”1 Hundreds of news reports repeated the story of how a single poorly handled customer complaint had, thanks to the...
Words: 5670 - Pages: 23
