There is a lot of airlines which are successful all through history but there are some which could not reach the goal. The most remarkable sample would be Singapore Airlines and American Trans Air (ATA Airlines). Singapore Airlines is reckoned by airlines industry, tourist and also its rival. It is one of the best among the airlines industry, according to various industry honour had been given. It is constantly better than its competitors in profitability (Chan 2000, 460). On the other hand, ATA Airlines filed for Chapter 11 bankruptcy protection in 2004 for the first time and faced bankruptcy for the second time in 2008 after being bought by Southwest Airlines (O'Malley 2008, 30). This essay is discussing about two airlines of how to manage …show more content…
An effective leader is can influence the staff with its personal qualities that include power, persuasion, influence, communication and personality (Waddell, Jones, George 2011, 11). The chief executive officers of Singapore Airlines, Chew Choon Seng allows his staffs talk in free-wheeling without the relationship between superiors and subordinates in the meeting because he emphasizes on cheerful communication among them which can promote teamwork and achieve the target (Argenti and Forman 2002, 144). CEO of Singapore Airlines, Chew Choon Seng led the organization to make the profit of 72% more than the previous fiscal year (Singapore Airlines 2008, 28). Besides that, CEO of Singapore Airlines, Chew Choon Seng had discovered that the demand for flight tickets continue to reduce through the first part of the year, so he convinced his staff to reduce the salary to continue the operations of organization and he even cuts his salary by 20% at the first (Downturn Hits Airlines 2009, 5). In contrast, ATA Airlines is managed by several chief executive officers and the most remarkable one is George Mikelsons who founded cost-cutting and the last CEO before bought by Southwest Airlines (Peter 1994, 1). CEO of ATA Airlines, George Mikelsons was unable to find the solution after having a loss in the first-quarter, which is $64.7 million loss and a …show more content…
Managers have to determine the target that the organization needs to pursue, the target like responsiveness, productivity and quality to passengers (Waddell, Jones, George 2011, 11). Manager of Singapore Airlines, Tan Kai Ping did not take a gamble by dropping the price of the flight ticket to compete with other airlines in order to maintain the profit (Valisno 2006, 1). Besides that, the general manager of Singapore Airlines evaluated that the demand for flight is continuing to increase, so he decides to launch an Airbus A380 on the daily route to Auckland and this will provide an extra 45 million in tourism (New Zealand 2014, 8). On the other hand, ATA airlines sold many seats at low fares to attract customers, however the number of tickets sold did not go into their plan (Koch 1999,1). Apart from this, the manager of ATA Airlines failed to estimate the demand for flight will increase in future, so the manager reduces the capacity of the organization because of having the loss for a long time (United State Department of Transportation 2005). Therefore, the vision of manager of Singapore Airlines is very well, he can successfully evaluate the demand for flight and make a correct decision to help the organization make more profit. However, the manager of ATA Airlines in order to maintain profit of organization and failed to estimate the income
Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
Sub-summary The leadership approach shapes the organisational structure and effects the business culture. Consequently, the analysis of the leadership style at the Virgin Atlantic Airways clearly reflects the contemporary leadership transformational theory. Action-oriented chairman reached high employees’ commitment by applying family atmosphere and generous reward system in the company. Therefore, obviously, that Branson wants the employees to bring the personalised attitude to clients.
Besides the issue mentioned above, the team from the airline were not able to build a relationship with outsourced suppliers. Finding a solution to the issues in pursuing multiple vendor sourcing strategies, the airline centralized IT department. This did not end there because the procedure of collecting information on IT needs and passing to IT for implementation was done in the same way for both local and spanned different branches IT requirements. This has caused the IT to work slowly in implementation and they were unable to respond according to the real business needs that were collected by the business
Sixth, top management failed to manage franchisees in terms of training, marketing, and operational
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
The leadership style of Lampert was director and analyser. All the data used in this document is secondary i.e. journal articles, webpages, presentations etc. Edward S. Lampert was appointed as the CEO of Sears in January 2013 and he stepped down from the post on May 2013 due to family health issues. Lampert was controlling half of the shares of company through his ESL fund investment. The company flounder under the leadership of Lampert and few analyst often ranked him as the world’s worst CEO (McIntyre & Calio, 2015).
The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
Johnson International Corporation (JIS) is a global company that offers logistical support to the military and private companies which employs 100 people and it is largely located in US, Europe and Far East. It has been doing business for last 15 years and it had a net income after tax of $10 million. 70 % of their business is related to military sector and its focus is to provide logical support to military and private sector. In this company the president and chief executive officer were the same person and he/she was responsible for the overall activities of the company. The company has cut the budget in various field including the budget in IT capital and human resource which includes training for employee.
However, the company will have to prioritize their strategy and concentrate on a few important issues. The company should prioritize on progressively taping into market areas that remain untapped. The company has concentrated on offering cheaper fares in routes where its competitors charge high fares. However, they need to branch out their operating areas to sustain their brand for a longer time.
Delta created its separate subsidiary in response to competitive threat of low-cost airlines. In addition, its subsidiary used pilots of its parent airline with independent decision-making authority. Does song have an effective strategy? Evaluate strategies by using three tests of effectiveness? Low-cost airline: Faster growth of low-cost aviation industry with homogenous service makes this industry fragmented across the United States.
Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.
CORPORATE LEADERSHIP SEVEN HABITS AND DEMING’S 14 POINTS AROOJ ZAFAR 01-221162-105 SEVEN HABITS AND DEMING’S 14 POINTS Stephen R. covey the author of the book “principle centered leadership” explained ways to establish personal effectiveness. In his book, he discovered seven habits that allow people or organizations to develop commitment towards stable and unchanging principles in their behaviors and interactions; in the state of interdependence. He linked total quality with principle centered leadership as it allows people to be more intrinsically motivated to seek stability and continuous improvement. Interpersonal effectiveness is essential to total quality as it allows organizations to develop relationships within the departments,
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive