It signed an MOU last year to develop a strategic partnership with Lufthansa.
** In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
21 August 2008
IATA's Bisignani: 'We are in the perfect storm'
News reports state that "We are a fragile industry and we are in crisis; wait and see is no longer an option," was yesterday's assessment from IATA DG and CEO Giovanni Bisignani, who was addressing the Australian National Aviation Press Club in Sydney.
He claimed that despite the recent reduction in oil prices, commercial aviation remains in need of assistance.
The labor costs for Southwest typically accounts for about 37% of its operating costs. Perhaps the most critical element of the successful low-fare airline business model is achieving significantly higher labor productivity. According to a recent HBS Case Study, southwest airlines is the “most heavily unionized” US airline (about 81% of its employees belong to an union) and its salary rates are considered to be at or above average compared to the US airline industry. The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees (except where disallowed by licensing and safety standards). Such cross-utilization and a long-standing culture of cooperation among labor groups translate into lower unit labor costs. At Southwest in 4th quarter 2000, total labor expense per available seat mile (ASM) was more than 25% below that of United and American, and 58% less than US Airways.
The Airline Industry - The Past - Yahoo Finance
8 August 2011
Stock market crashes threaten world airline profits
News reports state that Stock markets crashing around the world, amid renewed concerns over the potential spreading of the Eurozone debt crisis and weak US recovery, spell out a warning for the delicately poised airline industry profit hopes.
IATA has already had to twice downgrade its industry profits forecast for the year to $4 billion - less than a quarter of the $18 billion profit the industry enjoyed last year.
Management Strategy - Survival of the Fittest
Despite limitations such as generalizability, the findings of this study provides evidencethat airline industry professionals need to pay close attention to these strategies especiallyAirline Service Quality and Airline Switching Barriers and fine-tuning them to reflect theexigencies of the time and also to ensure their continued use and adoption for an improvedCustomer Lifetime Value.
Airline restructuring: successful survival strategy or ..
Southwest has long been regarded as a benchmark in its industry for operational excellence. Southwest Airlines is a fine example of a company that is committed to its core competencies – efficient operations to drive its low cost structure, outstanding delivery of customer service and innovative HR management practices. We hope this paper provided a good insight into Southwest operations, as part of its overall strategy, to achieve success and gain competitive advantage.
I would argue that the industry marketplace is so dynamic ..
Speaking yesterday, CEO Michael O'Leary said the radical U-turn was a bid to avoid travel chaos for customers during Christmas week.
Mr OLeary spoke to the airlines chief captains across its almost 90 bases.
During a conference call with the pilots, Mr OLeary is understood to have said that the offer of union recognition from Ryanair today is genuine.
He also told pilots that the move will have a longer-term positive impact on the carrier.
Ryanair has sought a meeting with the Irish Airline Pilots' Association (IALPA) on Wednesday, the day planned strike action is set to take place, and has asked the union to call off the strike.
However IMPACT trade union, to which IALPA is affiliated, has indicated that the strike will go ahead as planned if a meeting is not held with representatives of the airline before then.
One day of industrial action is planned for Wednesday December 20 and will mostly involved captains.
In a statement yesterday evening Ryanair said:
"The IMPACT union promised to call off the strike if Ryanair conceded recognition.
Airline alliance survival analysis: typology, strategy and ..
Fuel costs is the second-largest expense for airlines after labor and accounts for about 18 percent of the carrier’s operating costs. Airlines that want to prevent huge swings in operating expenses and bottom line profitability choose to hedge fuel prices. If airlines can control the cost of fuel, they can more accurately estimate budgets and forecast earnings. With growing competition and air travel becoming a commodity business, being competitive on price was key to any airline’s survival and success. It became hard to pass higher fuel costs on to passengers by raising ticket prices due to the highly competitive nature of the industry.