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... ess efficiency. We are expecting Delta Airlines will have some strategies changes if Slugair decided to attack Delta Airlines territory, such as establish a hub in Dallas. Delta probably will change their flight schedules around and give some promotions to lower their price to dry Slugair out of the market.
Since Delta Airlines is the 3 rd largest carrier for the United States, they are in a very strong market position right now. For those reasons we think that Delta is not the best target for Slugair. Southwest Airlines started off as a company with 3 planes serving 3 Texas cities. Today, it has over 300 planes serving 55 plus cities and has grown to become the 4 th largest U.
S. airline in terms of domestic customers carried. According to the 1999 Financial Statements, Southwest Airlines brought in a net income of $ 474. 4 million in net income, $ 4. 7 billion in total operating revenue, and carried a total of 57. 5 million passengers during that year. It is now a member of the fortune 500 and is a common stock traded on the New York Stock Exchange. With over 2, 700 flights a day flying 24 hours a day, the company's fleet has an average of 8. 4 years and a cruising speed of 564 miles per hour. In order to better meet the demands of the customers, Southwest Airlines became the first airline to establish a home page on the internet and now attributes more than 25 % of its passenger revenue from its internet site, web After visiting the website, Southwest Airlines must be commended on an impressive number of customer options.
However, booking a flight was slightly unusual. Airline tickets can only be purchased on a one-way basis. For example, a trip from Seattle, Washington to Los Angeles between January 29 and February 28 would cost $ 122 and a second ticket would have to be purchased at another $ 122 to return to Seattle, Washington. As a reward for flying with Southwest Airlines, customers can earn a free Award Ticket on Southwest Airlines. It just takes 16 one-way flights to receive the Award Ticket, but there is a catch. The 16 one-way flights must be taken within 12 consecutive months.
This can prove to be fairly frustrating to customers who may have taken 15 one-way flights, therefore not qualified to earn the Award Ticket from Southwest Airlines. In order to compete with Southwest Airlines, Slug Air could offer an online reservation website with a roundtrip ticket purchase option. The Rewards Program with Slug Air would allow for the credit points to roll over until it is redeemed. Due to the significantly smaller size of Slug Air operations compared to that of Southwest, Southwest Airlines may not take action to improve it options. It is more concerned with larger competition such as Delta, United, and Alaska Air.
This leaves Slug Air with plenty of room to grow as an airline committed to the advancement of customer safety and satisfaction. For nearly 70 years, Alaska Airlines has served the West Coast of North America. Alaska Airlines has grown from a small regional airline in 1932 to one that carries more than 12 million customers per year. Alaska's route system spans more than 40 cities and primarily services four countries: Canada, United States, Mexico, and Russia.
Their fleet of 88 Boeing jets are the youngest among all major airlines and they have earned U. S. airline recognition from Travel & Leisure and Cond Nast Traveler magazines. It has won the trust of creditors, employees, and customers by its time performance and its focus on customer service. The Boeing 727, the company's signature aircraft for 25 years, was first implemented in ' 79, the same year U. S.
skies were deregulated. Alaska was one of only three carriers that pushed for deregulation, knowing significant growth would be impossible without it. With the growing success of low-cost / low -fare carriers, the airline industry changed in fundamental ways in the 90 s. Streamlining its cost structure and increasing aircraft utilization, Alaska Airlines reshaped itself faster and more comprehensively than any carrier - all while maintaining a competitive advantage in customer service. Their motto, "For the same price, you just get more, " resonated with customers. Modernizing there fleet and staying on top of technological innovation has positioned the airline well as it moves into the new century.
They provide scheduled air service to 36 cities in Alaska, Washington, Oregon, California, Nevada, Arizona, and British Columbia, plus six destinations in Mexico. Their major hubs are Anchorage, Seattle, Portland, and Los Angeles. I feel with the comparison to Slug Air, Alaska might be a good competitor to be against. They have serviced Western America for the last 70 years, yet I have never even heard of them. Plus, because their name, Alaska, throws me off.
I would think that Alaska Airlines is just an airlines composed of spokes reaching out from the hub of Alaska, and does not service other routes which do not connect to or from Alaska. I would never think of calling Alaska Airlines to book a flight from Seattle to Los Angeles! Plus the other airlines that we are comparing are extremely well known and customers tend to lean towards using products and services because they are well known. Slug Air might have a chance in this market where Alaska has its main hub because Alaska is the smallest fleet of the other competitors we are comparing. If Slug Air were to compete, I feel Alaska's main response would be to market their airlines better. The image they are giving out is incorrect because of their name, and if I were on the team of analysis dealing with the issue of competition my first and foremost strategy would be to market the fact that they do not only service Alaska, but other main destinations.
We have chosen to enter the market where our main competitor would be Alaska Air. In order for us to be able to compete well with this airlines we have the following strategies. First, we would want to change the name Slug Air to something that indicates a "fast" airlines better. Perhaps Eagle Air or Hawk Air, some name that would give the image of a speedy on-time airlines. Second, by taking on more flights we would eventually need more and perhaps newer aircraft in order to keep all of our flights and great on-time record. We would not want to start running late or have an airplane crash because our fleet was too old and tired.
Third, our competitors offer online services such as scheduling flights online and online price quotes. The website could offer links to car rental or hotel reservation sites. We can offer a frequent flier package that could be competitive compared to those of other airlines in that it could be an easy, no non-sense package where you collect the mileage and can use it with not as restraining of rules. We could even look into a credit card sponsor who could offer free miles for each dollar or couple of dollars spent with their card.
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