The Internet has helped, the airlines to easily achieve greater reach, and to develop new ways of interaction with suppliers, partners and clients as well as significant cost reduction throughout all business operation. With the Internet, airlines could change the distribution channels; customers have already started to purchase their airline tickets directly from the airline, bypassing the traditional travel agencies. Expanding the electronic commerce market, which brings together demand and supply through the Internet, and also the advancement of information and communications technology, ...
A.) Basic description of Industry Industries such as the US airlines are a very valuable and are used throughout the world as an easier way of transportation. Some would call this industry an oligopoly. The airline industry is classified by the government and is based on the amount of revenue...
Introduction The airline industry demonstrated consistent growth throughout the 1990's. Lower airfares due to slumping gas prices coupled with an overall American economic boom paved the way for these dramatic increases. Simultaneously, the blossoming Internet was making it easier for passengers ...
The objective of this report is to gain an understanding of how this international airline is strategically managed to gain maximum profit from it own fleet and through members of its alliance. This particular airline was chosen first because we had some previous knowledge of them and their alliance with Northwest Airlines. It will be interesting to find out what steps they are taking to fulfill their mission statement of, "Striving to attain excellence as an airline and by participation I the world's most successful airline alliances, KLM intends to generate value for its customers, e...
Athens University of Economics and Business Department of Business Administration Discussion questions for case three: The US Airline Industry in 2002 Alessio Rossi AP. MHTP. 2030297 Athens, 10/11/2003 1. Use Porter's Five Forces of competition' framework to show how the structure of the airline industry has caused low profitability during the past twenty years. Since domestic deregulation occurred in 1978, competition in the airline industry has intensified and become more concentrated. This situation can be analyzed through Michae...
BACKGROUND On Wednesday, February 11th 2004 the merger that would create the world's third-largest airline was approved by the European Commission and the U.S. Department of Justice. Air France and the Netherlands-based KLM plan to operate two carriers under a single holding. The two airlines have agreed to form a joint holding company under which the Air France and KLM brands would co-exist for three years. Under the agreement KLM will retain its foreign landing rights even though it will join a French-led holding company. ...