Monday, October 8, 2007
Plane Wreck Question # 2 Chad Schrepper
Yes, I feel that budget airlines are in a totally different strategic group than major network airlines. Budget airlines have a completely different strategic approach, for instance they focus on cutting costs by landing on smaller less expensive runways, and they cut down the flight accommodations and point A to Point B flights, along with hiring non-union employees. On the other hand major network airlines focus on comfort throughout flights which costs more money for the airline, which in turn increases the ticket prices for customers. Because of these reasons the small budget airlines are able to sell more tickets and produce a greater profit compared to the major network airlines.
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2 comments:
Danny Santana- #4
If the airline industry plans to return to profit things have to be changed. People go into business to make money, but bigger companies with household names make more money then the smaller ones that know one knows about. These companies need to cut some costs in order to be profitable. After the September 11th attacks people are much more afraid of flying then they were before the tragic event occurred. Although is it fair to say that the average income of a household in the United States is growing will make it easier for the average American to be willing to fly.
Joe Fields- #5
I feel the major airlines need to try and get rid of the unions that control their plans for change and benefit their employees. The major airlines have tried to squeeze out the budget airlines but i really think they should try and merge with airlines such as southwest. This would not only eliminate competition and allow them to raise prices but it would also allow them to make flights suitable for all customers. If they were to merge or try and copy the approach of these budget airlines i think you would see the Big Six airlines take air travel back over. In my opinion the big six have not done enough yet to turn their companies around.
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