...Marketing Plan Tabitha Blount, John Greene, Nicole Noe, Marva Weeks and Tracey Ysordia MKT/421 September 30, 2013 Dr. Michael E. Ricco MBA, DBA Introduction In 1930, American Airways was first founded and had flights from their hub in Dallas to Boston, Chicago, New York and Los Angeles. American Airlines Inc., formerly known as American Airways, is a US airline owned by AMR Corporation. As one of the leading airlines in the United States, their available flight routes are both domestic and international. In February 2013, American Airlines and US Airways announced plans to merge, which would create the largest airline in the world. The combined airline is set to carry the American Airlines name and branding; the new publicly traded holding company will be named American Airlines Group Inc (American Airlines, Inc, 2008). With the merging of the airlines, American Airlines is looking to the future for continued profitability and to continue success with customer satisfaction. Description of New Service American Airlines, Inc. will introduce the AirPad and also the AirPad, Jr. The new product lines will be available on all flights. The rentals are free for Business Class travelers and those in coach will be charged a $15 or $10 if they reserve in advance. The AirPad product lines will have access to a large selection of movies, television shows, interactive and kid friendly games. They will also offer a variety of magazines and books that can be rented during the flight...
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...and good for the people. Without the Sherman, Clayton, and Federal Trade Commission Act, there would be a monopoly of every industry, trade, marketing, and services. This would in-turn lead to higher prices for the consumer, lower quality products, less innovation, and poor service. As I mentioned in my opening sentence, I will bring up two individual cases that the DOJ (Department of Justice) is pursuing when it comes to Antitrust Laws. I would like to begin by quoting the DOJ’s mission statement. Mission “The mission of the Antitrust Division is to promote economic competition through enforcing and providing guidance on antitrust laws and principles. Antitrust Laws The goal of the antitrust laws is to protect economic freedom and opportunity by promoting free and fair competition in the marketplace. Competition in a free market benefits American consumers through lower prices, better quality and greater choice. Competition provides businesses the opportunity to compete on price and quality, in an open market and on a level playing field, unhampered by anticompetitive restraints. Competition also tests and hardens American companies at home, the better to succeed abroad. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade, such as price-fixing conspiracies, corporate mergers likely to reduce the competitive...
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...------------------------------------------------- American airlines leadership American Airlines Leadership American Airlines has a very unique history being the first “major airline” in the United States. The original name of the company was American Airways, which was conceived through the acquisition of 80 different airlines in 1930. The smaller airlines that were acquired included, Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western United States, Universal Aviation in the Midwest, amongst a few others. With the airlines working under one name they were able to provide a much simpler way to travel and like many early carriers then, American earned it’s the most by carrying U.S. Mail. By 1933 American Airways operated a transcontinental route network serving 72 cities. In 1934 American Airlines was created by E.L. Cord who acquired American Airways and renamed it. The new owner, E.L Cord, hired C. R. Smith a Texas businessman. Smith began to work Donald Douglas in a project where they would pioneer a new phase of airline industry. Smith and Douglas worked and developed the DC-3, exclusively for American Airlines. This new plane was known as the flagships and the American Airlines’ DC-3 allowed for the company to be made the first airline to be able to operate a route that could earn a profit solely by transporting passengers, instead of relying solely in mail transportation. American Airlines was not only the first to profit from passengers...
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...BACKGROUND OF EMIRATES AIRLINE In the mid-1980s, Gulf Air began to reduce its service to Dubai as it was concerned it was providing regional feeder flights for other carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity...
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...BACKGROUND OF EMIRATES AIRLINE In the mid-1980s, Gulf Air began to reduce its service to Dubai as it was concerned it was providing regional feeder flights for other carriers. As result, Emirates Airline was formed in 1985. The company is funding of Dubai’s royal family with start-up capital US $10 million as independent of government subsidies . Emirates Airline is the world largest international carrier but in term of income the company at the stage seven when it compare to others largest airline. For the category of international passengers carried, Emirates Airline is at number four. Emirates Airline also runs 4 of the world longest non- stop commercial flights from Dubai to Los Angeles, San Francisco, Dallas/Fort Worth, and Houston. Ahmed bin Saeed Al Maktoum is the Chief Exercutive Officer (CEO) of Emirates Airline. The main competitors of Emirates Airline are British Airways, Qatar Airways Group, Etihad Airways, Deutsche Lufthansa AG and Air France –KLM S.A. The company start its operation with the first flight EK600 departs from Dubai International Airport to Karachi. The first 3 destination of Emirates Airline were Karachi, New Delhi and Mumbai. Currently, Emirates Airlines flies to 128 destinations with a fleet size of 199 aircrafts. Emirates Airline cabin crew is training at the Pakistan International Airlines Academy. In October 2008, Emirates moved all operations at Dubai International Airport to Terminal 3. The aim of Emirates Airline is quality and not quantity...
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...| AA | [Marketing in downturn] | American Airlines American Airlines (AA) is a major U.S. airline and a subsidiary of AMR Corporation. Founded in 1930, AA flies throughout North and South America, the Caribbean, Europe, and Asia/Pacific with 260 destinations in total. AA has a fleet size of 605 planes. The revenue of 2010 was US$ 22.17 billion and this shows that AA is still one of the biggest airline companies in the U.S. Impact of the financial crisis The financial crisis hit AA hard as it was already suffering due to the inflation of oil prices. The high price of oil resulted in a very high cost of fuel for the company’s jets. Oil prices have gone up to more than $130 per barrel. The increasing cost of oil has cost the company almost $3 billion since the beginning of 2008. The stock prices went down in response to the crisis and the increasing oil prices. In November 2011, AMR filed for bankruptcy protection in an effort to reduce labour costs and shed its heavy debt load. American Airlines until the crisis in 2008 Due to the high price of oil, resulting in very high costs of fuel for American Airlines and a decline in travel demand; American Airlines had to decrease the amount of domestic flights by 12 % after the end of summer 2008. Earlier American airlines had only meant to lower the amount of flights by 4.6 %. As the oil crisis started to have a larger impact on American Airlines, adjustments had to be made in order to...
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...STRATEGIC ALLIANCES IN THE GLOBAL AIRLINE INDUSTRY Abhishek Goel1 Abstract Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare. “Airline Business Alliance Survey of 2000 reports that there are 579 alliance agreements in place, up from 280 agreements (more than double) in 1994 when the survey was first conducted. Five major alliances (Star, Oneworld, Qualiflyer, Sky Team, and Wings) account for some 60 percent of all air travel.” (Mason, 2002) The lines above make the issue important enough to understand the phenomenon that is guiding the industry. Almost a decade back Oum, Taylor and Zhang (1993) argued that the airline industry will be marked by strategic alliances and these alliances will be global in nature. The guiding factors will be several that include formation of blocs, resource...
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...American Airlines Foreign Direct Investment Plan University of Phoenix June 8, 2009 American Airlines Foreign Direct Investment Plan American Airlines has decided to expand operations into the greater China market. A thorough analysis of the marketplace has taken place and the final remaining detail that needs to be defined is the airlines strategy for the foreign direct investment (FDI) that will be required to service successfully the Chinese travel market. While much of the expansion into the China market will leverage local resources, direct investment in the Chinese infrastructure will be needed. As such, the FDI analysis will focus on the expansion of airport facilities, airport and city ticket offices and a reservation center. The structure of the FDI analysis will include an executive summary of American Airlines overall China strategy, modes of entry and associated risks, funding of the initiative and contingency plan should the airline need to change strategies mid implementation. Executive Summary American Airlines and American Eagle (firms owned by AMR) serve some 250 destinations in approximately 40 countries including destinations in Europe, the Americas, and Asia-Pacific. The combined aircraft of both carriers comprise of 900 airplanes with 625 of those being jets. On any given day the airline transports 270,000 passengers on approximately 3,300 flights to over 170 destinations worldwide. Additionally, American Airlines is part...
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...Classic Airlines Solution Odessa Mattern Marketing/571 University of Phoenix Heidi Kelley April 18, 2011 Introduction This paper will be to analyzing and apply a problem-solving process situation at Classic Airlines. Using in the process to come up with the final analysis for Classic Airline. The beginning will give background on the company. The middle will address the problems that Classic Airline is facing It will also show how the challenges and opportunities in each department within the organization. The ending will be the SMART end goals that will measure the end results. Background on Company Classic Airlines has been in business for 25 years and is the world’s fifth largest airline with more than 375 jests that serve 240 cities. Classic Airlines employ 32,000 employees and earned $10 million on $8.7 billion in sales. In the past year, Classic Airlines have seen a decrease of 10% in share prices and a 19% decrease in the number of Classic Rewards members; with a 21% decrease in flights among the remaining member (University of Phoenix). Problems Classic Airline Facing Though profitable, Classic is no stranger to the challenges that plague today’s airlines. The following are problems that Classic is facing: * 19% decrease in Classic Rewards members * The travel downturn that followed September 11, 2001 * Rising cost of fuel and labor * 10% decrease in share prices * Negativity from Wall Street, the media and the public *...
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...web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Table of Contents Introduction 2 History of AMR 4 Financial Analysis of the Airline Industry 5 History of Expedia 8 Financial Analysis for Expedia, Inc. 9 Comparison of Both Businesses and Their Industries 13 Conclusion 15 Introduction The airline industry is one...
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...Not Everyone Wants a Relationship By Rick Spitler and Sherief Meleis Some banking customers — just like consumers who shop at Wal-Mart or fly on Southwest Airlines — are happy to trade style or comfort to get their business expedited on attractive terms. Related Charts • Discount Banks Pursue the 'Other Half' of the Market • Winning Formula • Transforming the Generalist Retail Bank For one view of what the future of the banking industry may look like, consider the airline industry, where Southwest Airlines Co. has ascended to dominance in just 30 years. While "full-service" carriers like American Airlines Inc., Delta Air Lines Inc. and United Air Lines Inc. focused on building elaborate jet fleets and "hub" systems at major regional airports, Southwest adopted a discount fares strategy based on older inner-city airports and a zeal for efficiency. To control costs, for example, Southwest re-used plastic boarding passes and handed out peanuts instead of hot meals — and passed along the savings to its customers. Today, Southwest's market capitalization is roughly seven times that of the nearest U.S. legacy air carrier. Overall, discount carriers have claimed 25% of the U.S. commercial passenger market, according to the National Institute for Aviation Research, based at Wichita State University. That share is expected to soar to 40% over the next few years. This is a harbinger of things to come in retail financial services. Operating with superior efficiency and offering...
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...Alaska Airlines Strategic Management Model Linda Gay Cahill Table of Contents: Strategic Profile Company Introduction 3 Strategic Analysis PEST Analysis (Political, economic, social & technological factors) 4 Resource-Based View 6 Value Chain Analysis 8 SWOT Analysis 11 Strategy recommendations 13 References 14 Company Introduction Alaska Airlines is the ninth–largest U.S. airline based on passenger traffic and is the dominant U.S. West Coast air carrier. Headquarter in Seattle, Washington, Alaska carriers more passengers between the state of Alaska and the Lower 48 than any other airline. During recent years it has expanded significantly to serve more U.S. East Coast, Mexican and Canadian destinations. Long know for its Alaskan roots, symbolized by the Eskimo painted on the tail of the aircraft, Alaska Airlines offers a friendly and relaxed style of service, one that passengers have came to appreciate as the “Alaska Spirit.” The airline is known for embracing innovative technology to improve the customer experience. The carrier traces its roots back to 1932, when Linious “Mac” McGee airways started flying his three-seat Stinson between Anchorage and Bristol Bay, Alaska. A merger with Star air service in 1934 created the largest airline in Alaska, which eventually became Alaska Airlines. Alaska and its sister carrier, Horizon, are owned by Alaska Air Group.1 Alaska Airlines has a dominant market share serving Alaska. Unlike the rest of the economy...
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...Southwest Airlines Research Report Tommy Best - Jessica Johnson - Adam McCormick Laura Monday - Evvan Tolly - Jessica Wirth Mary Wrenn ADV 340 - Dr. Childers - Fall 2009 Table of Contents Industry Overview Introduction....................................................................................................................................................................................................................... 1 History............................................................................................................................................................................................................................... 2 Size of Industry.................................................................................................................................................................................................................. 2-3 Stage in Product Life Cycle.................................................................................................................................................................................................. 3-4 Seasonality......................................................................................................................................................................................................................... 4 Growth Potential/Forecasts..........................................................................................................
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...Marketing Definition Paper University of Phoenix Mayra Gisela Santiago -Nieves MKT/ 421 Prof. Thelma González Arvelo 30 de julio de 2011 Marketing Definition Paper En el siglo presente es de vital importancia estar familiarizado con el significado de la palabra mercadeo que ha evolucionado con el pasar del tiempo, con los adelantos tecnológicos y con las necesidades que se le crean a los consumidores. La palabra mercadeo no solamente significa vender, su definición es más abarcadora y a continuación estaré mostrando diferentes definiciones. Según Armstrong, G., & Kotler, P. (2009). Marketing: An introduction (9th ed.). Upper Saddle River, NJ: Pearson Education: Mucha gente piensa que mercadeos es venta o publicidad. Eso es cierto, pero esas cosas son parte del mercadeo. Mercadeo es mucho más que venta y publicidad. Según Philip Kotler: mercadeo es el proceso social y administrativo por el cual los grupos e individuos satisfacen sus necesidades al crear e intercambiar bienes y servicios. Según el libro Mercadotecnia Sexta Edición Philip Kotler - Gary Armstrong: mercadeo es un proceso social en el cual grupos e individuos logran lo que necesitan y desean mediante la creación, oferta y libre intercambio de productos y servicios que otros valoran o necesitan. Según el libro Mercadotecnia Sexta Edición Philip Kotler - Gary Armstrong: mercadeo es serie todos los compradores, reales y en potencia, de un producto o servicio. Según el libro Mercadotecnia Sexta Edición...
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...COMPANY PROFILE Southwest Airlines Co. REFERENCE CODE: DEFBDE99-9B78-4A63-BE9C-7EA7568D476E PUBLICATION DATE: 30 Nov 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Southwest Airlines Co. TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 Business Description...........................................................................................4 History...................................................................................................................5 Key Employees.....................................................................................................7 Key Employee Biographies................................................................................10 Major Products and Services............................................................................16 Revenue Analysis...............................................................................................17 SWOT Analysis...................................................................................................18 Top Competitors.................................................................................................23 Company View.............................
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