Nobody downloaded yet

US Airways Group - At the Back of the Pack - Essay Example

Comments (0) Cite this document
Summary
Its history and company heritage goes back to 1939 with the creation of All-American as an air-mail delivery company providing air delivery service to the western part of Pennsylvania and Oregon originally piloting a single engine Stinson Reliant airplane…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
US Airways Group - At the Back of the Pack
Read TextPreview

Extract of sample "US Airways Group - At the Back of the Pack"

Download file to see previous pages Ever since the industry was deregulated in 1978 intense competition and price gauging has made profitability increasingly difficult for the airline industry in general.
After the stock market crash of 2008 and the economic recession that followed coupled with rising fuel costs were the direct cause of several airlines having to file for bankruptcy protection (Plunkett Research, 2010). The airline companies that survived the onslaught were presented with a volatile and fluctuating operating environment of rising fuel and energy costs, coupled with a decreased demand for passenger travel in general and negative impact on revenues mainly as a direct result of the economic downturn. The rising costs have cut the margins in the industry so much that current the average net margin in the airline industry is two percent. The period of 2008 and 2009 remained a very challenging period for all the airlines with most of them struggling to remain profitable. For 2010 with the slow economic recovery businesses as well as private travel has increased significantly in volume, so occupancy rates in general for the airline industry have been full. When airlines are able to fill the seats of their airplanes to full capacity the company is optimizing the productivity of the operation. When the latter occurs and companies have idle capacity issues airlines have to take drastic measures to fill those seats which includes price deductions to spur the demand for air travel. After the previous years of consecutive losses the airline industry in general returned to profitability. U.S. Airways just like any other domestic airline is subject to a complicated array of laws and regulations that limit their operations as well dramatically increasing their operating costs. With the advent of the Aviation and Transportation security Act of 2001 which mandated the standardization and federalization of airport security and mandated additional security procedures which increased operational costs tremendously airlines had to absorb the costs and imposed a per passenger tax on ticket sales in order to fund the additional security measures. The Federal Aviation Administration is the federal agency responsible for regulating the airline industry operations, procedures and their operational safety, including aircraft maintenance. The FAA will regularly issue new directives and changes in maintenance schedules and procedures which create mandated operational costs that are also a factor in increasing airline operational expenses. Other proposals to address airport congestion in certain airports in the U.S. involve increasing pricing to take into account congestion or placing a tax on certain particularly congested airports. This could potentially affect the airline industry in the near future by further increasing the costs of passengers to travel if these changes or suggestions are placed into law (Datamonitor, 2010). Further regulations and government legislation concerning pollution, climate change and aircraft emissions also post a significant operational threat to the airline industry as a whole. In the list of Fortune 1,000 : Most admired companies 2006, U.S. Airways Group was consistently ranked lowest in all the eight key attributes that were taken into account. U.S. Airways Group achieved an overall score of 3.25 placing it as the least admired airline out of all the major competitors. For this survey U.S. Airways was ranked last in the industry in four of the eight ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“US Airways Group - At the Back of the Pack Essay”, n.d.)
Retrieved from https://studentshare.org/business/1423234-us-airways-group-at-the-back-of-the-pack
(US Airways Group - At the Back of the Pack Essay)
https://studentshare.org/business/1423234-us-airways-group-at-the-back-of-the-pack.
“US Airways Group - At the Back of the Pack Essay”, n.d. https://studentshare.org/business/1423234-us-airways-group-at-the-back-of-the-pack.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF US Airways Group - At the Back of the Pack

US Airways Group - Going Global

...?The airline industry is a very competitive industry where profits are very low. US Airways has been doing fine in its domestic US marketplace due tothe fact that the US travel industry is quite large. In 2009 the US travel industry generated $704 billion in revenues (Plunkett Research, 2010). As markets mature and companies obtain a set level of market shares it becomes harder for companies to achieve further penetration in its domestic marketplace. Good managers have to make good decisions with their money. When a market becomes saturated investing marketing dollars does not have the same effect as when making the same marketing investment in a new...
2 Pages(500 words)Essay

US Airways Group - Going Global

...in this industry that wants to enter into a new marketplace is the cultural factor. It takes a lot of time and effort to learn about the culture of a new country. This element can only be mastered by the learning curve which takes time. The learning curve can be defined as graphical representation that depicts the rate of learning of a person, group of people, or organization (Answers, 2011). A third barrier of entry for US Airways or any other company that seeks to establish an air transport operation in a foreign location is finding specialized talent for key jobs such as aircraft pilots and aviation engineers. Technology is a factor that affects US...
1 Pages(250 words)Essay

US Airways Group - Political/Legal Environments

...operational structure with a focus on achieving the lowest possible operational cost structure in order to maintain profitability in a highly volatile industry. Today the airline industry is characterized by a low cost, low fare operating environment where basic services are limited and extras such as in-flight meals, or not charging an extra fee for excessive luggage or carry on bags use to be have become standard operating procedure. Airline companies have had to adapt by charging extra for many services that use to be offered for free as part of the airfare. References Plunkett Research (2010). Airline, Hotel, and Travel. Retrieved May 28, 2011 from Plunkett Research database. Yahoo.com (2011). Form...
2 Pages(500 words)Essay

US Airways Group - Sociocultural

...?Examining the different cultural aspects of various cultural clusters also creates a different understanding of how a business should work. When looking at US Airways Group, it can be seen that there are several sociocultural aspects which relate to business. This is specifically defined when looking at the cultural clusters of the Far Eastern Countries, with an emphasis on China, and Germanic countries, with a focus on Germany (Ajami, Cool, Goddard, 2006). Both regions have different attitudes, beliefs and expectations that are based on flight and business principles and which create a different relationship to the business through the sociocultural aspects of each country. The first...
3 Pages(750 words)Essay

US Airways Group - Putting It All Together

....html CountryWatch (2011). Afghanistan. Retrieved May 28, 2011 from CountryWatch database. Datamonitor (2011). US Airways Group, Inc,: Company Profile. Retrieved May 27, 2011 from Datamonitor database. Misra, R. (2010). What is the domestic market share of the top US airlines? Retrieved May 27, 2011 from http://www.quora.com/What-is-the-domestic-market-share-of-the-top-US-airlines Rita, P. (2000). Tourism in the European Union. International Journal of Contemporary Hospitality Management, 12(7), 434-436. Yahoo.com (2011). Form 10-k for US Airways Group – Inc. Retrieved May 28, 2011 from http://biz.yahoo.com/e/110223/lcc10-k.html... ?U.S. Airways group is currently the fourth largest commercial airline in...
5 Pages(1250 words)Essay

Pack Journalism

...Pack Journalism A journalist is someone who gets shot at in a war zone so he can report back material that can't be broadcast because it might be toodisturbing. This is one of the funny descriptions given by Harry Shearer for what a journalist is. Thought it is funny but there is truth in here that needs world attention. Today, it does not need a war zone to get a journalist shot because many journalists are killed and murdered just about anywhere, even at the comfort of their house. It is very startling that incidence of these killings is proliferating all over the world. And this, makes the journalist work never be the same again. Sometimes, the government that should have been protecting its citizen, including journalists... of...
5 Pages(1250 words)Essay

Curriculum leadership pack

...at that level. Policymakers in our country might still be questioning the requirements for our schools’ physical education program, and multitude of us have concluded a definition of political triumph as sustaining a status quo in the schools, rather than the reinforcement of curricular prerequisites. The reality that several of these same policymakers have expressed their advocacy on quality, regular physical education is an irony that expresses a great deal about the ambiguous position of physical education as an academic discipline. Based on the Inspection Report of May 2008, our students perform poorly in key physical education activities namely, game plays, gymnastics and dance, particularly in body...
18 Pages(4500 words)Essay

US Airways

...US Airways Group: Challenges (Your Full BA 301 Final Term Paper Section Number (e.g., Section 002) Table of Contents Executive Summary In the diversified airline industry that the developed world is experiencing, it is clear all types of challenges that the general economy has also affect the airline industry. The role of management team in the midst of such challenges will continue to have a huge bearing on the operations and profitability of the players. Challenge identification coupled with the appropriate solution finding mechanism will prove to be the solution in the market marred by several uncertainties. In this report, the US Airlines Group is...
12 Pages(3000 words)Research Paper

Business strategy of US Airways

... Airlines, US Airways has little presence in Los Angeles with only a strong presence in outlying airports such as Ontario, Burbank and Long Beach. The merger is a strategy that will make US. Airways presence in Los Angeles significantly felt hence a boost on its performance. Under the new merger, the Group president Scott Kirby indicates that they anticipate targeting corporate customers as they can spend thrice as much as leisure clients, qualifying them as a lucrative segment on the airline market (Staff, 2013). Reference Staff, P. B. (2013). American Air Groups new strategy: no layoffs, more business travelers post merger. Phoenix Business Journal .... Business strategy of US Airways Number According to...
1 Pages(250 words)Case Study

ALJAZEERA AIRWAYS GROUP

...DD Month YYYY FINANCIAL REPORT OF THE JAZEERA AIRWAYS GROUP Jazeera Airways Group is a company that aims at delivering a reliable and an efficient journey for both its customers and shareholders. The company is fortunate in that its customers and employees operate on a modern technology to enhance natural travel and customer assistance at any moment. The company operates only on modern aircraft this is to win the heart and trust of its clients. The aircrafts are also well equipped with modern technology and facilities with less noise output making the travelers feel very comfortable. This is a company that is making the profit with a sound annual financial report that...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic US Airways Group - At the Back of the Pack for FREE!

Contact Us