It is a low-fare airline, serves individuals of more than 50 different cities of 28 states. These US airlines presently render more than 2400 flights in a day, and still expanding itself more towards east. Southwest Airlines of…
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Southwest first expanded to the East Coast in 1993, with service to Baltimore-Washington International Airport. In 1994, the company acquired Morris Air, a Salt Lake City, Utah based airline. That same year, Southwest launched several programs to cut costs. A ticket less system reduced travel agents commissions, and Southwest began to use an in-house reservation system.
By 1997, Southwest Airlines served cities in all parts of the continental United States. This same year, Southwest formed an alliance with Icelandair. This agreement enabled Southwest passengers to connect from several United States cities to Europe through Icelandairs Baltimore hub. The company completed its first non-stop transcontinental flight in 1998, thus establishing Southwest as a formidable domestic competitor. In this paper potential areas of improvement, and how Southwest Airlines can gain its own advantage in the industry will be discussed.
Southwest ranked number one in on-time performance for several years according to [The Department of Transportations Air Travel Consumer Report]" (Goh, 2007, 103). This punctuality can be attributed the companys ticket less system and no-frills approach to air travel. The ticket less system reduces costs for both consumers and Southwest. Travel agents and ticket brokers are eliminated from the ticketing process. This also minimizes the lengthy check-in processes by eliminating physical transactions between customer service representatives and the consumer. All that is required is a reservation number and a form of identification to receive a reusable boarding pass, which enables the customer to board quickly.
Southwests no-frill approach reduces preparation time by eliminating the time required for three optional services. The first service to be bypassed is the meal distribution by flight attendants. Southwest does not serve meals on any flight regardless of duration. This severely reduces the time required of planes while sitting
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US Airline Industry
Recently, the industry suffered poor level of profitability. There are various factors that could substantially explain this and the bottom line of doing it would mean understanding the external and internal business environment of the US Airline Industry.
U.S. Airline Industry Analysis
Although European players dominate the aviation industry in general, majority of the large players operate in the United States.
Although this strategic amendment assisted the industry to improve the growth at its initial stages, the revenues again declined by the beginning of 1990s.
It has however been a process of several decades that has made this industry flourishing and the government has played an important role in its development. Even though the first airplane was developed in the US in the year 1903, it was not until the year 1914 when the first commercial flight took place.
The socio-economic empowerment of women that has come about as a result of a series of global changes including feminist movement, women’s education etc., has been questioning the male-dominated structure of conventional marriages and families and also been causing divorces on a larger scale (Mooney, Knox and Schacht, 154-155).
Prior to the airline deregulation of 1978, the industry was almost like a cartel with very few number of airline industries serving different American states. Nevertheless, an inevitable and unexpected competition arose which resulted into a dire instability in the industry; hence, the advent of the Civil Aeronautics Board was established to administer the industry’s structure and competition.
This essay is an attempt to understand the US airline industry from the perspective of international business theories. This essay would also include a political, legal, and economic perspective of the US airline undistry today. Porter Five Forces Model and four Ps of marketing would also be used as for examples.
This paper discusses the need as well as the extent by which government should exercise control over the airline industry.
To some degree, government regulation may be deemed as vital in keeping the efficiency level within the airline industry. Since
Deregulation and privatization has changed the industry intensively. This has also contributed to increased competition among its players who are required to further enhance their services to gain better prospects.
One of the major aspects that the MD employed was the reward power. At the individual level, I was very motivated by the reward power that the management provided to me once I attained my monthly goal of dispatching 50 quotations to potential customers.
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