Singapore Airlines have to renew their fleet more frequently than Delta Airlines, due to a shorter aging period for their aircrafts. At some point in time, Delta Airlines will end up with a bigger number of aircrafts, which would be older than the ones of Singapore Airlines. If we consider that the average age of Delta’s airplanes is 8.8 years, and of Singapore airlines is 5.1 (both: case - pgs. 2 and 3) then the difference in airplane ages will be 3.7 years. Using the average gross value (calculated in Q3) and assuming 3% of inflation before 1993, we can calculate the increased value of the fleet: Average gross value $
Although Southwest Airlines themselves are not making the aircrafts, it allows their manufactures cost to remain low due to they are buying products in bulk. The third of those being the advantages gained by spreading fixed production cost over a large production volume. (Hill, Schilling, & Jones, 2017) Again, aircrafts are not a simple process. Big aircraft companies such as Boeing and Airbus produce aircrafts as quick as possible. It does indeed help though, when Southwest Airline deals with just
However, businesses that make their fortunes using government-sponsored rail lines seem to be disinterested in paying for the lines they use. Perhaps the best way to cut down on accidents on rail lines is to treat them as a private utility. Local governments and businesses could come together to decide whether it’s worth spending corporate money to have a rail line or not, and average taxpayers could stop funding an outdated mode of transportation. At this point, investment in rail is just a bad investment. As trucks become more reliable, safer, and self-driving, trains will continue to be a less sensible investment, but governments still pour billions into rail lines that barely see use.
Strengths are the features of the business and internal capabilities that allow the company to operate more effectively than their competitors and help to reach its objectives , such : distinct product quality , marketing expertise , good location and other , for example : United airlines have a good reputation and this is a strength of the company .Weaknesses are internal limit that may limits the company’s ability to achieve its objectives , such : bad location , poor quality product and other , for example : United airlines have a lack of resources and this is a weakness of the company . Opportunities are external factors that may help the company to exploit to its advantages , such :demographic changes , economic claims , new technology and taste of customers , for example : in the holidays , people often want to travel , so United airlines provide a good offering to attract more travelers . Threats are emerging or current external factors that may challenge the company’s performance , such as : economic crisis , taxation and competitions , for example : United airlines have a many competitors that may challenge the company’s abilities to attract more customers . as I’m the owner and managers of United airlines ,first I will look at my own internal strengths for example : United airlines are a very trusted brand and Has an employee strength of over 85,000+ . While my own internal weaknesses
Where an airport has significant market power incentive-based regulation is the only price regulation that will deliver efficiency gains. Airports usually have high credit ratings and can bear risk more easily than airlines. Regulation should be designed to facilitate this. Standards Poor passenger experience with check-in and security processes is another factor leading to a commoditization of the airline product and a low customer willingness to pay. Standards being introduced and proposed by the fast travel and checkpoint of the future programs and others could play an important role in improving passenger experience and willingness to
Since Nok Air positions itself as “premium low-cost airline”, the firm is now facing the high cost. The costs include fuel engine price, the premium onboard service, foods and beverages, the cost of offering high weight of baggage, and so on. Also, as Nok Air has to hedge fuel engine from Thai Airways International Public Company Limited, it mainly drives Nok Air to have the higher cost, and it results in decreasing the profit (“Broken Wing Nok Air,” 2008). However, the firm cannot increase passenger ticket price. Otherwise, it will be inconsistent with Nok Air’s position.
Crowair Plc is a low cost airline operating short routes serving UK regional airports across Europe. the company’s aim is to keep costs low by offering a more basic service than other airlines, the company has decided to expand its services. The company decides to go through a 3 step process so as to achieve this objective: Planning, Decision Making & Control. Planning Planning is a process that involves setting goals, creating strategies, and outlining tasks and schedules to achieve the goals. The success of any business depends on the accuracy of the action-plan set.
Although I can agree with the fact that cheap flights are slowly increasing, we still need to do much more when it comes to ticket expenses. Additionally, the first commercial airline flight to the present we have spent trillions of dollars in just fuel expenses. Airbus research suggests that every flight in the world could, on average, be around 13 minutes shorter, which would save millions of tonnes of excess fuel annually. By changing the way airplanes use fuel with a better technology and newer aircrafts, airlines might have a much higher profit, making flight tickets cheaper in the
Vision statement should be less than two sentences, the goal that motivates employees, and the future that the company wants to become or achieve. According to article ACSI: Low-Cost Carriers Lead Legacy Airlines for Passenger Satisfaction (2017), the score of ACSI of Southwest Airlines is 80 and this is the second highest score in the industry; the top score is 82 of JetBlue. The phrase “the world’s most loved, most flown” that Southwest Airlines provides can be thought as an achievable goal from this data and as proceeding to the goal, the loyalty of the company will become stronger (Southwest Airlines, n.d.). The vision statement of Southwest Airlines is clear, but could be more specific to something that is measurable. Proposed Vision Statement We propose that our new mission statement should be “ To become the world’s most requested and most cost efficient airline with quality customer service .”.