...Aerosphere Airlines Case: Aerosphere Airlines Scott Schneider is the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ...
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...Case: Aerosphere Airlines Scott Schneider is the Chief Marketing Officer for Aerosphere Airlines, a Flemish company that hires private jets. He worries about how to maintain a marketing edge against his main competitors, Dynasty Airlines, Shark Airlines, and Ultra Airlines. Aerosphere, Dynasty and Ultra have similar business models, reflecting a higher concern for service, and Shark positions itself more as a low-price, low-cost carrier. The four companies operate from airports in Belgium and offer flights within Europe. The total size of the market for flights in private jets in Belgium is estimated at 20.000 customers. Mainly companies who choose to hire a private jet, rather than buying or leasing their own corporate jet. To figure out the current competitive position of the airlines, and to help set strategy, Schneider commissioned a customer equity study of the industry. This began with focus group interviews with customers to figure out the drivers of Value Equity, Brand Equity and Relationship Equity. Based on the focus groups, Schneider came up with the customer equity driver diagram shown in exhibit 1. The identified drivers and sub-drivers were: Drivers of Value Equity ▪ Quality of cabin service (“cabserv”) ▪ Passenger compartment comfort (“passcomp”) ▪ Price (“price”) Drivers of Brand Equity ▪ Attitude toward the airline (“aatt”) ▪ Awareness of the airlines...
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...double the amount of their largest competitor, United Technologies. Boeing and their competitors have seen a sharp increase in fuel prices and airlines around the globe have a need to renew or expand their current fleets. The overseas exporting market is seeing ongoing recovery, representing the industry’s largest market. This is largely due in part to the American dollar not being as strong as oversees currency, allowing for American made products to be cheaper through exports (imports for buyers). The industry is estimated to grow 2.8% per year up to 2017. With strong domestic and international demand and a decrease in federal funding, Boeing Co., must incorporate technological improvements to drive growth in the next 5 years to maintain their share of the market. With fuel costs on the rise, Boeing will be forced to create airplanes and parts that can be designed to minimize fuel consumption, thus increasing revenue for the company. Airline companies want a product that is more fuel efficient and will utilize any manufacturer that will reduce their overall fuel consumption costs. In order for Boeing to meet their customer demands and to significantly capitalize on this market in the future, they must reinvent their research and development department. Boeing is the future and must envision the future. Although the airline industry has a limited array of companies to choose from when ordering...
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...Introduction Malaysia Airlines (MAS) is the Malaysia national air carrier. It was incorporated during the early days of air travel in 1937. From a humble beginning, MAS has developed into a renowned international airline with award-winning products and services. MAS has gone through several changes in its management over the years and still survives. For the Financial Year (FY) 2005, MAS reported a loss of over RM1.3 billion (Appendix 1). This announcement came at the same time as some of MAS regional competitors reported strong profits. On 1 December 2005, Idris Jala was appointed by Government of Malaysia as MAS Chief Executive Officer (CEO) to resolve issues affecting the MAS’s cash flow to enable it to meet its fuel bills and operation requirements by April 2006. In addressing this issue and in view of these challenges, MAS under new CEO had taken a radical approach in its operation and had formulated a business plan in the year 2006 called Business Plan Turnaround (BTP1), which outlines their imminent recovery plan to achieve better financial performance as well enable it to not only realize operational profitability but also ensure business sustainability. BTP serve as a platform for future growth of MAS. Under the various initiatives, launched together with the BTP1, MAS switched from losses to profitability between FY 2006 and FY 2007. When the BTP came to an end, the airline posted a record profit of RM 853 million in 2007, ending a series of losses since 2005. ...
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...To Whom it May Concern; This letter is to express my interest in the position of flight attendant with WestJet as posted on your website. After reviewing the job description, I am confident I have the skills, attitude, and personal experience to integrate effortlessly into the WestJet team. While I have no direct work experience in the airline industry specifically, I do have personal life experience, and a work and educational background that I believe you will find invaluable. As per your requirements: ▪ I am 5'6", neat and well groomed, and accustomed to meeting strict uniform standards. ▪ I have excellent written and oral communication skills. ▪ I am committed to ongoing improvement and professional development. ▪ I am able to travel away from home, work long hours, any time of day, 7 days a week, 365 days a year. ▪ I am fit, athletic and able to meet the challenges of a physically demanding job. ▪ I am tolerant, polite and enjoy working with people from diverse backgrounds. ▪ I have 11 years experience handling emergency situations with calm, assertive leadership. ▪ I appreciate the need to adhere to safety standards and follow workplace procedures. ▪ I have 3 years experience working as a flight paramedic on a Beechcraft King Air 350 for the BC Air Ambulance Service. ▪ I hold a valid Canadian Passport. As well, to facilitate my transition into this new, dynamic career, I am currently improving my formal education. At present I am taking...
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...• A strategic analysis report relating to Jetstar Airlines o A competitive analysis of the market/s including: A brief description of the history of the company and a history of the main competitors. Include joint venture alliances where applicable. History of the company Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group). Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent. Jetstar Pacific based in Vietnam (majority owned by Vietnam Airlines with the Qantas Group holding 30 per cent). Jetstar Japan, a partnership between the Qantas Group Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. Jetstar Hong Kong, a partnership between China Eastern Airlines and the Qantas Group (subject to regulatory approval). The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 100 million passengers since it launched in 2004. In the past financial year ended June 2012, the Jetstar Group carried more than 20 million customers. The Jetstar Group has grown from providing...
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...Ibrahim Osta, Chief of Party. TABLE OF CONTENTS I. II. EXECUTIVE SUMMARY 6 THE ENVIRONMENT IN WHICH KHIA WILL MARKET 1. APPROACH AND RELEVANCE AT KING HUSSEIN INTERNATIONAL AIRPORT 2. SCHEDULED AIRLINES AIR SERVICE PLANNING PROCESS 3. CHARTER SERVICE AND TOUR PROGRAM PLANNING PROCESS 4. AIRLINES’ ECONOMIC DECISION-MAKING CRITERIA 5. PROACTIVE AIRPORT LEVERAGE – Prodding the carriers 6. PRESENTING A COMPELLING DESTINATION MARKETING PROPOSAL 6 13 13 15 17 19 20 21 III. AQABA THE DESTINATION – Issues for Consideration 1. AQABA HOTEL AVAILABILITY 2. AQABA HOTEL ARRIVALS KING HUSSEIN INT’L AIRPORT MARKETING PLAN 1. INTRODUCTION 2. STRUCTURE OF THE KHIA MARKETING STRATEGY 3. KHIA AT A GLANCE 4. CURRENT BUSINESS 5. COMPETITIVE DESTINATIONS / AIRPORTS 6. POPULAR EUROPEAN CARRIERS AIRCRAFT 7. KHIA MARKETING OBJECTIVES 8. KHIA MARKETING RESEARCH FOR DECISION SUPPORT 9. MARKETING CAMPAIGN DESIGN & EXECUTION 10. MAINTAIN TRADE RELATIONS 11. SALES MISSIONS IN SUPPORT OF NEW BUSINESS 12. PR / ADVERTISING & PROMOTION 13. BRANDING 14.ESTABLISH STAKEHOLDER PARTNERSHIP PLAN 15. ACCOUNT MANAGEMENT APPROACH 16.INTERIM MARKETING ACTION KHIA MARKETING DEPARTMENT STRUCTURE 1. STAFFING REQUIREMENT 2. ORGANIZATIONAL STRUCTURE TARGET AIRLINES AND TOUR OPERATORS 1. ROYAL JORDANIAN 2. LCC AIRLINES OPERATING IN / SERVING THE REGION AND PROSPECTIVE TOUR OPERATORS 22 23 25 26 26 27 27 27 34 35 37...
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...Summary and Analysis of Zsidisin &Hartley’s (2012) Managing Commodity Price Risk Summary As every organization and business in the market is exposed to price risks due to the commodity price volatility, it’s imperative for managers to predict those risks and make strategies to mitigate the damages brought by price volatility. This book not only shows us the importance of commodity price management, but also teaches organizations how to adapt and adjust themselves to commodity price volatility and provides approaches to decrease the exposure to risks for managers. Therefore, this book is a necessary one to manage commodity price risk for managers and organizations. Why is the commodity price risk management so important for companies? The book gives us the answer. Since prices fluctuations of goods are based on changes in supply and demand in the market and such fluctuations of prices are out of the direct control of any company, understanding companies’ exposure to price risk and making decisions on how to manage the risk become pivotal to supply chain mangers. The book points out that the risk exposure of business might be impacted directly by purchases of raw materials and indirectly by costs from energy and transportation. According to the authors, commodity price volatility affects industries’ performance both negatively and positively. It is obvious that fluctuations of raw materials or transportation cost can directly influence the profitability of companies...
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...Business and Support Systems MGMT305-1102B-11: Management Information Systems American Intercontinental Uni July 3, 2011 Abstract In the following paper there will be a discussion of three case studies and the questions at the end of each case study will be answered. Managing with Web 2.0 How do Web 2.0 tools help companies manage knowledge, coordinate work, and enhance decision making? Web 2.0 tools consist of blogs, wikis, and social networks and are power tools to assist in boosting productivity and communication. The software used to support these systems are virtually inexpensive and very user-friendly and can be used to allow upper management to view progress on projects from either teams and their project managers to IT staff developing the newest technology and programs to use What business problems do blogs, wikis, and other social network tools help solve? The problems that blogs, wikis, and social networks help to solve would be miscommunication and allows those who work at home or all over the world to be able to communicate. It also decreases the amount of money spent on long distance phone calls and traveling expenses racked up due to business. Describe how a company such as Wal-Mart or Proctor & Gamble would benefit from using Web 2.0 tools internally. Both Wal-Mart and Proctor & Gamble are two companies that are large enough to benefit from the use of Web 2.0 tools; blogs and wikis. In my opinion these two of the three would be best...
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...4 MAGIC CARPET AIRLINES: CLIMATE OF THE AIRLINE INDUSTRY Appendix A Prior to the Deregulation Act of 1978, the airline industry was federally regulated in regards to the routes airlines flew and the fares they charged. Typically, when carriers negotiated labor contracts they gave a specific percentage increase in wages and then petitioned the government for a similar percentage increase in their fares. With full deregulation, airlines were free to fly any routes, pay any wages, and to charge any fares they wished. Deregulation resulted in the formation of many new airlines. These new carriers were usually non-union and had substantially lower labor costs; thus, they charged lower fares. Competition for passengers forced the older carriers to lower their fares and to reduce service to smaller cities with unprofitable routes. To cope with deregulation, companies made other changes. Airlines realigned their route systems. They developed "hub and spoke" systems whereby passengers were funneled into a hub city by a small regional carrier utilizing small aircraft (as represented by a spoke on a wheel). Travelers connecting at a hub city from a small airline then transferred to the major. To encourage these transfers, major airlines began contracting with smaller regional airlines to provide this spoke system for their hub cities. This arrangement gave new opportunities to regional carriers. However, to obtain such arrangements, regional airlines had to also cut...
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...in the internal situation of an organization. 7S Framework 1. Strategy- Boeings strategy was to update the technology systems, downsize their operations and reestablish relationships with their suppliers and the only chance of cutting operating cost. 2. Structure- the problem of 1994 was the Airbus ( their main rival-booked more orders). This shocked the management executives and began a series changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that reportedly changed. 3. Systems-Boeing adopted the principles of creating more value for customers with fewer resources. 4. Style-the decision was made to diversify from the traditional commercial airline industry and that many acquisitions that were made createe integration issues for the company. They were trying to add more stability to the business by entering the space industry and information services. 5. Staff-According to The CEO of Airbus( Noel Foregeard), the process of diversification was demoralizing for Boeing employees. Boeings vice-president of marketing contradicted Foregeard and said “what affects morale right now is that we are in a down cycle” (Palmer, 2009). Regardless of why the employees morale was low, Boeing had to take steps to rectify it. 6. Skills-Boeing bet is future on the market developing a partially smaller aircraft like their new 7E7 Airbus . They also plan on purchasing larger aircraft in the future. ...
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...Quality Management Local vs. Global Company Quality There is no absolute definition of quality. The quality in relation to the products may be defined as fit for the purpose. The more it fit for the purpose more quality product it is. We may also define quality as consistently producing what the customer wants while reducing errors before and after delivery to the customer before and after delivery to the customer. The quality is when customer’s expectation are met or exceeded. Quality is ever changing and dynamic phenomenon; a product may have been a quality product in past but no more a quality product today. Elements of Quality The key elements of total quality consist of strategically based, customer focus, obsession with quality, scientific approach, long-term commitment, teamwork, continual process improvement, education and training, and freedom control.( (Goetsch, 2010) Other elements include unity and purpose and employee involvement and empowerment. Strategically focus means that organization should have a vision, mission and objective and all activities must be carried out to achieve these objectives. Quality goods should be focused towards customers and people associated with it. Obsession with quality requires all employees to always be focused on bringing the organization to higher level. The scientific approach relates to the structure of the work and being able to make decisions and solve problems that relate to the organization. Freedom through control...
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...the air transport, has the largest sensitivity on the economic crisis. That crisis hit and still continues to effect the populations, industries and economic growth in developed and developing countries. Every sector has been effected by the crisis, every industry has had a reaction and an immediate research for solutions. Instability of revenue and expenditure in the airline industry was effected from the global change. That for is easy to deduce that these reactions are different from each other. This in according to available founds, resources and differences in management. 2.0 Impacts on demand The demand aspect, is a factor that shows us the relationship between population and economic crisis. In fact, the perception of crisis brings different fears and uncertainty in people. Thus leading to an increase of the overall savings, with consequences under the economic factor, with less expenditure incurred by each person. This is one of the things that influenced more directly the airline industry, with a sharp drop in demand. Taking into account only two points is easy to imagine on one hand the airlines in trouble. And their management of this crisis have a fundamental elements as the recovery and the re-growth in demand. On the other hand there is a greater fear caused by the global economic instability, with price increases and a equal or less salary for each one. This leads to a greater efforts on both sides. As...
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...transportation are the direct substitutes for persons who are not concerned about travelling fast and reaching destination on time. Indirect substitutes such as Tele conferencing, online chatting and VOIP will increase the power of substitutes as they save time and money for the customers who are flying. Threat of Entrants: Low Extremely high fixed initial costs along with high government regulatory requirements lift the entry threshed for the air transportation industry. High competition and the dominant powers of existing large players create high chances of retaliation. Rivalries: Medium to High Qantas observes sever competition from Virgin Australia domestically and a number of low cost airlines internationally such as China Southern Airline and Malaysia airline. Qantas must always revitalize its product offerings...
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...Organizational History and Current State of Affairs This portion of the paper will include key information about Delta Air Lines, Inc. (Delta): (a) history; (b) culture; (c) important leaders over the years; (d) current products and service offerings: (e) target markets; and (f) methods of product and service delivery. History This section describes the history of Delta. The company was founded in Macon, Georgia, in 1924, as the world’s first crop-dusting service, Huff-Daland Dusters. The company moved to Monroe, Louisiana, in 1925. In 1928, field manager C. E. Woolman and two partners purchased the service and renamed it Delta Air Service after the Mississippi Delta region it served. Delta was the first international mail and passenger route on the west coast of South America. Delta operated its first passenger flights over route stretching from Dallas, Texas to Jackson, Mississippi, via Shreveport and Monroe, Louisiana. Also, Delta was awarded a US Postal Service contract in 1934 to fly from Fort Worth to Charleston via Atlanta (Hoover’s, 2011). In 1941, Delta relocated to Atlanta. Woolman became the president in 1945 and he managed the company until his death in 1966 (Delta, 2011). Delta offered its first night service in 1935, using the Stinson Model A; the first Delta aircraft with two pilots. Douglas DC-2 and DC-3 service was introduced and the introduction of flight attendants, called “stewardesses,” added to flight crews. Delta contributed to the war effort...
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