Introduction
The airline industry has been a major factor in the globalization of the world economy. It connects the sellers and the buyers as well as transports goods across countries. It also breaks the time and distance barriers. In the past, air travel was considered a luxury but it is now a common necessity.
The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition
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Based on these factors, we can conclude that with the strict safety and operational rules and regulations imposed by the regulators in current political environment, stiff competition from the budget “ No Frills” carriers, the evolution of the passenger profile and airline accidents ( missing planes / air plane crashes and environmental progresses have affected the viability and profitability of the global airline industry.
B ) Environmental Scanning Using SWOT Analysis
United Airlines Inc ( United ) is ranked as the world’s largest airline based on the number of destinations flown. United is represented by “ Fly The Friendly Skies” slogan and the “ Rhapsody In Blue” theme song. ( Berryman, Marvin E, 2014 ).
A SWOT analysis of United will enable us to be able to evaluate the strengths, weaknesses, opportunities and threats of this airline. We will start by identifying the business objectives of this airlines and then identifying the internal / external factors which are favourable as well as unfavourable towards achieving these objectives.
The goals have always been very consistent throughout the years :
• Customer Centricity
• Country Strategic Resources
• Stakeholders ( ROI )
United’s business approach is “ Focus On Five”, referring to a very comprehensive set of priorities based on the core basics of managing a good airline :
• On time arrival
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Weaknesses
( i ) High Dependency On Third Party Providers
United depends strongly on third party providers to ensure smooth operations. Many integral functions comprising of the maintenance, repair, fuelling of the aircraft as well as call centres are outsourced. This increases the company’s expenses and decreases the revenue.
The company’s reputation will be at stake if these third party providers fail to perform or to live up to expectations.
( ii ) Strong Unions
A strong majority of the United’s employees are part of professional unions as per the following :
• Flight attendants : AFA
• Pilots : ALPA
• Engineers : IFPTE
• Dispatchers : PAFCA
More than 5,000 flights were cancelled as a result of pilots going on strike ( Washington Post, 2000 ). United’s schedule was on standstill for 29 days when their pilots went on strike in 1985 resulting in severe losses and a downward plunge in customer confidence ( www.alpa.org, 1985
1. United Airlines is owned by the UAL Corporation and was incorporated on December 30, 1968. The actual company was formed may years before this actually in 1925 and was a private mail carrying service between Pasco, Washington, and Elko, Nevada, and from these humble beginnings they formed a were able to start a company that would come to be a global leader in the airline service. From the 1960’s to the 1980’s the company had 6 different presidents and started to expand and venture into different aspects of business other then airlines and were unable to have any success. These companies that they purchased were not a success and were later resold.
United airlines are known for building a sustainable future for its customers. They have over 47,000 employees and operate the most huge track network of any airline in history. They services 1,071 destinations and flew to 170 countries international. They’re working on building a working culture that their employees will enjoy and love coming to work. United is committed to leading the global airline industry by
SWOT is a contraction for the internal strengths and weaknesses of a firm and the environmental opportunities and threats facing the firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. WestJet Airline as a competitive, unique, and international company in the airline industry, they are facing strengths and weakness from internal, and opportunity and threats from external.
Having been founded on May 30th 1924 Delta airlines is one of the only 4 legacy carriers still left in the aviation industry since the 1978 airline deregulation act. It is a major United States airline and its headquarters are in Atlanta, Georgia. Delta airlines operates 5,000 flights every day of which are both domestic and international. Delta airlines hub is located at Hartsfield-Jackson Atlanta international airport which is considered the worlds busiest airport in accordance with passenger traffic which accumulates to over 91 million passengers per year. Its fleet consists of 722 airplanes and its
Southwest Airlines made its first voyage back in 1971 with service based in the cities of Dallas, Houston and San Antonio (Brief History, 2009). 38 years later, Southwest Airlines has more than 3300 flights a day and serves 66 cities in 33 states (Factsheet, 2009). Southwest Airlines has demonstrated a variety of strengths in its 38 year presence. Recent economic events have also caused a renewed focus on the company’s weaknesses. Aside from its weaknesses, Southwest Airlines has also been keeping track of opportunities that currently exist in the market. Like all other companies, however, they still have some ground to make up when analyzing possible threats to
United Airlines has been welcoming of union participation throughout its history. As of December 2010, 72% of United Airlines employees were represented by unions ranging from the International Association of Machinists and Aerospace Workers to the International Air Line Pilots Association (United Airlines Annual Report, 2010). However, since the merger, it has been dragging its feet in completing a collective bargaining agreement for the merged
My organization has many strength points such as being the world’s second largest air carrier as we have hubs in several US States and international airways worldwide; we fly to more than 117 destinations worldwide. We also have many employees helping us maintain our standards; worldwide we have more than 80,000 employees. United airlines provides very attractive travel packages and frequent flyer programs through being a star alliance member.
American Airlines is the world’s largest legacy airline (Taube, 2014), operating nearly 6,700 flights daily to 350 destinations across 50 countries (American Airlines, 2017). American Airlines operates out of 10 main hubs and numerous spoke cities throughout the United States and Internationally. American Airlines business model is aimed at the premium customer market of business and international travelers as well as leisure travelers who want to enjoy the flying experience and the comforts of flying. American Airlines offers main cabin and first class (for transcontinental flights) and business class (short-distance international flights) structures for their flights. On long distance international flights, flagship first and flagship business classes are offered for “elevated” and “personalized” experiences.
American Airlines is the largest airline carrier in the US, and after the recent merger in the world. In 2013 American Airlines revenue alone was $24,825,000 and combined $1.95 billion in earnings. With the positive revenue the new American Airline will have a younger fleet giving the passenger the most up-to-date travel experience.
Airlines provide air transportation facilities for everyone, being one of the most common passenger transportation around the world. Although the airline industry is a very competitive market it is very beneficial for everyone. Everyone has experienced distance at least once in their lives, however, the invention of the air craft is one of the many inventions that has changed how people live; making life easier for those that must travel long distances across the country or abroad for either business, fun, visit loved ones or for the pursuit of dreams and happiness. American Airlines is not only the largest airline network but, it is also the best and most affordable of all the airlines in the world.
Airline Industry is 500 billion dollars, creative and dynamic industry. In early 2001, airline business was going through very rough patch because of economic crisis
This industry is heavily saturated with intense and rapidly evolving competition due to the relative ease of entry into the market. This accounts for why there are hundreds of airlines ranging from prominent well-known ones to virtually obscure and obsolete airlines. There are six primary airlines which compete fiercely and maintain the majority of the market share and total volume. The remaining fraction of the market share is then sub-divided and allocated amongst the hundreds of smaller, less relevant airlines. The only notable trend within the industry seems to be a total lack of consistency, as market shares and profits fluctuate regularly during any given time period.
When thinking about airline companies, most people naturally gravitate to the big name carriers of current times. Delta, American, United, and Southwest usually top the list of companies that come to mind when discussing airline companies. Throughout history, however, a multitude of airlines have operated in the United States and abroad. Some of these merged or were bought by other companies forming the mega airlines we see today. Others were not so fortunate. The airline industry is a complicated business with high costs and narrow profit margins. Many airlines have simply succumbed to these challenges unable to turn a profit. One of these companies, most people have
The airline industry has been around for years, it has suffered its ups and downs due to attacks such as the one that occurred in September 11, and even most recent as the Paris attack that occurred this past year. Major Airlines have suffered a decline in their profitability which has forced many airlines to file for bankruptcy. However, when bad times hit an industry some companies are forced to quit, while others are forced to change their strategy and continue moving forward.
Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries (Airline Industry, 2000). In Globalization era, Airplane industries are really important to move people to another place. It’s really reliable and secure. Compare with five decades ago. Airplane was frightening and costly. People try to find new technological innovation in airplane industry to devoted passenger more cheaply and safely. It proved that each generation of new plane such as Boeing and airbus has been more reliable carried the passenger. In Malaysia, there are two well-known Airline company.