Fuel Hedging in the Airline Industry: The Case of Southwest Airlines Executive Summary From December 21, 1998 to September 11, 2000, jet fuel prices increased 255%, from 28.50 cents/gallon to 101.25 cents/gallon. While jet fuel prices have declined from their highs, at a price of 79.45 cents/gallon, they are still significantly above the December 1998 lows. With the future price of jet fuel being unpredictable, Southwest has decided to implement a trading strategy in an effort to mitigate
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Management and the Business Processes Affected Southwest Airlines is the single largest low-fare airline today, carrying more passengers to their destinations than any other airline in the world. One thing that has made Southwest Airlines so big is its commitment to customer service, an area of focus that positively affects an organization’s bottom line. While almost every major U.S. airline has declared bankruptcy within the last 10 years, Southwest Airlines has consistently generated a profit for over
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launch a new airline company that would bring “ humanity back to air travel” despite the fact that U.S. airline industry had lot failures over the past 20 years. JetBlue had target its strategy and operating philosophy by offering customers low –fares tickets, high performance of customer service, providing new aircrafts and focused on point-to-point service to large metro areas. JetBlue’s operating strategy had produced the lowest cost per available-seat-per-mile of any major U.S. airline in 2001- 6
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System Assignment 12/335910/EK/19096 Discussion Questions -- Case 3.1 Southwest Airlines Corporation Question 1 : What is Southwest’s strategy? What is the basis on which Southwest builds its competitive advantage? One of the goals of the company is to achieve its goals which can be seen through the Vision. Southwest’s Vision “ To become the World’s Most Loved, Most Flown, and Most Profitable Airline” can be achieved by planning good strategy. Strategy is also needed in
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United Airlines vs. Delta Airlines Ushma S. Patel 3/31/2013 Ushma821@gmail.com Work Cited 1. Introduction 3 2. United Airlines vs Delta Airlines 4 3. The Four-Frame Model 8 4. SWOT Analysis- United Airlines 12 5. SWOT Analysis- Delta Airlines 14 6. Analysis 15 7. Recommedations 16 8. Work Cited 17 INTRODUCTION In evaluating two companies who have had to restructure their business models to
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STRATEGIC MANAGEMENT (EBS5103) CASE STUDY INSTRUCTOR: Dr. Ahmet Beşkese BAHÇEŞEHİR UNIVERSITY May 2015 1. INTRODUCTION This report is based on strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission
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Business of Business is People: A Leadership Analysis of Herb Kelleher When asked about September 11, 2001, Herb Kelleher said the following, “The first thing on my mind, quite honestly, was the well being of our crews and our passengers. Are we getting the airplanes down safely? Do we know where everyone is? Are we taking care of them?” –Herb Kelleher (Yeh). Herb Kelleher was born in Camden, New Jersey on March 12, 1931. His father was a Campbell’s Soup Kitchen manager. Herb studied at
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Unit 8 Assignment: Case Study Analysis Read “Taking Responsibility: High-Flying Labor Relations at Southwest Airlines” at the end of Chapter 14. Answer the three questions at the end of the case in a 2-3 page paper. Follow the project guidelines below. Requirements: 1. Click to use the Case Study Template (also available in Doc Sharing). 2. Complete a 2-3 page paper (not including the title page and reference page). 3. Answer each question thoroughly. 4. Demonstrate your understanding
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VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s
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SWA case Status Analysis Southwest Airlines is a true American success story. In 1971, they began as a small company which was only able to service Dallas, Houston, and San Antonio, Texas. They have come from being a small operation consisting of only three airplanes in three cities to being one of the largest airlines in the United States operating 530 aircraft1 across 32 states2. In the past, their success has been directly tied to their commitment to customer service. Southwest Airlines
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