Williams Anaab Module 1 Case Assignment (Airline Market) MKT 501: Strategic Marketing Dr. Cathy Cameron 24 November 2013 Introduction In recent years, affected by natural disasters, emergencies, oil price volatility, the international financial crisis and other factors, especially the oil price, that is the most major factor of the airline cost, and still increasing, made the airline industry’s production decline sharply. The main source of profit for the airline industry are passenger
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Executive Summary Southwest is a company founded in 1967 by it’s founders, Rollin King, Herb Kelleher, and Lamar Muse. Southwest's company model changed the rules for the air carrier industry and soon after new air carriers were created based on Southwest’s model. Southwest focused on their customers and company culture in order to really make their company stick out from other air carriers. They also had cheaper air fares and shorter turnaround times compared to the U.S. average within the industry
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Southwest Airlines Operations – A Strategic Perspective September 1, 2014 by Airline Editor Southwest Airlines Operations – A Strategic Perspective By Mukund Srinivasan Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18, 1971. Its first flights were from Love
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July 1999. Although the terrorist attacks of 9/11 made the huge loss of the whole airline industry, JetBlue airways try to publish its own IPO after 2 years of profitable operation in 2002, This case study is summarizing the step to publish the IPO. Following this, it will discuss the disadvantage and advantage to publish the IPO and use the financial data to evaluate the price is suit for the first publish. In this case, there are three different share valuation methods: P/E multiple (comparison pricing);
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SOUTHWEST AIRLINES FUEL HEDGING AND RELATIONS TO PROFITABILITY 1 Southwest Airlines Fuel Hedging and Relations to Profitability A Case Study in Cost-effective Fuel Management SOUTHWEST AIRLINES FUEL HEDGING AND RELATIONS TO PROFITABILITY 2 Abstract In order to stay airborne, a passenger airline has to consistently generate profits. Profits come only from paying passengers, hence all stratagems must be customer oriented. In a scenario where there are many airlines competing with
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Southwest “Winglets” Case Expected Future Cash Flow of Blended Winglet Project The cash flow estimations for this project were based on assumptions gleaned from our engineering department, flight operations department, and facilities department. From our initial investment data, we assumed a winglet cost of $700,000 per aircraft, installation of $56,000 per aircraft, and an additional day of downtime for each aircraft at $5,000 per day. The total value of the winglet installation per aircraft
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Introduction to Southwest Airlines 3 1.1 Overview 3 1.1.1 History 3 1.1.2 Southwest Airlines’ offerings 4 1.2 Reasons for choosing Southwest Airlines as a case study on HR practices 5 2 Literature review 5 2.1 HR strategies 5 2.2 Training and development 7 2.3 Compensation 8 2.3.1 Financial compensation 8 2.3.2 Non-financial compensation 10 3 Human resource practices in Southwest Airlines 11 3.1 Human resource strategies in Southwest Airlines 11 3.1.1 Southwest Airlines
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LEASE CASE Basic Concepts: 1. On January 1, 2013, Flying High Airlines leased a new airplane for a term of 10 years. The expected life of the airplane is 20 years. There are no rights to purchase the asset at the end of the term, no bargain purchase option, and no residual value guarantee. The lease stipulates that Flying High makes annual payments of $650,000 beginning at the end of the first year (December 31, 2013). Flying High has an incremental borrowing rate of 4.5% and the fair market value
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Financial Statement Analysis American Airlines (AMR) Abstract American Airlines (AAs), American Eagle, and American Connection currently provide scheduled service to 250 cities in 40 countries, with an average of over 3,400 daily flights. Together, these carriers operate a fleet of over 700 aircraft and are subsidiaries of the AMR Corporation. Though AMR was founded in 1982, the AAs brand has been a major player in air travel for over three quarters of a century (www
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Introduction: JetBlue is a low-fare airline established in 1999 by David Neeleman, a veteran in airline start-up. By adopting a high frequency, short-haul, point to point strategy that leverage on technology advantage, together with an experience management board. In April 2002, JetBlue Management decided to price the IPO of JetBlue at despite that it was during one of the worst periods in airline history. The IPO was initially priced at $22-24 per share, it was later adjusted to $25 to $26
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