Page 53 Share Suggested Citation: The National Academies Press. The business case must be credible and convincing to internal and external stakeholders or its likelihood for success will decrease.
United Airlines Continental Airlines With Delta Air Lines in mind and the financial information referenced in Appendix A, four airlines were specifically identified as comparable competitive substitutes. As seen in the following chart, United Airlines, American Airlines, Continental Airlines, and perhaps soon to be a part of Delta Northwest Airlines all displayed similar characteristics that drove them to directly participate in domestic and international air travel: Threats from Substitutes The technological advancements in the past fifty years have been astronomical in creation of new, highly efficient tools that range from medical advances to space exploration innovations.
Inside of this ever-growing journey of technological advances is transportation. With increased efficiencies in modes of transportation, greater threats to the airline industry present themselves.
In order to fully understand what types of substitutes pose a threat to the airline industry, one must first screen possible substitutes to each prospect in the transportation trade.
The main modes that could present themselves include railway, oceangoing vessels, and motor vehicles. With price-performance tradeoffs in mind, ocean transportation is limited in its appeal, as it lacks the advantage of speed in transatlantic crossings.
This leaves railways and motorized transportation, which includes passenger buses and cars. These two modes have always been options that are easily substituted for air travel. With oil prices increasing at a regular rate and even more so jet fuel costs increasing, both airlines and road transportation seem increasingly unattractive for business or pleasure travel.
From Greyhound buses to Enterprise Rent-a-Car, companies are trying to differentiate in the travel industry and all competing against the same negative factor: Potential Entrants Although the airline industry has seen better times, the market is still hot and demand is still high.
Because of this, new entrants are always a threat to existing airlines. The more airlines there are, the lower prices will be-due to competitive forces that drive prices down.
With this in mind, a few airlines are making an attempt to enter the American domestic air travel industry. One surprising firm that wishes to expand its small operations out of Florida to a mainstream, national consumer base is Disney 3.
With new entrants into the marketplace, buyer inclination to specific airlines will increasingly become important to the overall strategic success of Delta.
Suppliers Power The airline industry has seen few additions and changes to its suppliers market. The two main suppliers that supply to the majority of the airlines are Boeing and Airbus. This situation creates little rivalry and a lack of industry intensification.
Because supplier power is greatest when they are few in numbers, the supply side of aircraft is somewhat set in stone. The ability for an airline to switch suppliers is limited and could incur extreme, bank-breaking costs.Jan 21, · Southwest Airlines did not become one of America’s most admired companies and a benchmark for customer service by resting on its laurels.
Southwest refined its . Delta Airlines: An Analytical View Recommendations to Succeed in the Airline Industry I. Industry and Market Analysis The airline industry is currently undergoing radical changes in how it operates. Code of Ethics Delta Air Line by sameer_sawant_43 in Types > Presentations and code of ethics delta air line.
Code of Ethics Delta Air Line. of Delta may not provide them with “special” or favored treatment. I bet a lot of other airlines will follow Delta’s lead. shareowners.
Alaska Airlines ranked No. 1 in fuel efficiency for U.S. airlines, in a report released recently by the International Council on Clean Transportation (ICCT), an independent, nonprofit research organization based in Washington, D.C.
The stakeholders covered in the survey across Oyo, Osun, Ondo, Ekiti and Kwara were renowned educationists, government officials, school proprietors, parents, public school teachers and principals, lawmaker, guardians and Nigeria Union of Teachers (NUT), among others.
Strong brands align their external promises to their internal operations. Southwest Airlines, as a low-cost provider, has aligned its activities with its strategy. It offers limited passenger service with no meals, no seat assignments, no connections with other airlines and no baggage transfers.