Alaska Airlines (AA) was founded in Anchorage in 1932 and expanded to 22 aircraft operating within the state by 1934. In the late 70s, the airline began expansion to the lower Western states and by 1987 had acquired Horizon Air and Jet America bolstering its North South route structure and complementing the seasonal nature of travel to Alaska. (Company Website)
Today Alaska Airlines has grown from a small regional airline to a route system spanning more than 80 cities in the U.S., Canada, and Mexico. Along with its partner airline Horizon air it currently carries more than 12 million customers per year and has consistently earned best airline recognition from various magazines such as Travel and Leisure. (Alaska Air Group Almanac)
Situational Analysis of Airlines Industry:
Airline is a complex industry. It involves major capital requirements for aircraft, strict government regulations, restrictions and state policy, competitive reaction from other tourist transport and requiring high level of expertise to operate and manage.
More and more airlines are facing increasing globalization, rising fuel prices, heavy repair & maintenance cost, raising labor costs, increasing competition and requirements for higher service levels and greater flexibility.
Post 9 -11 the airlines industry has to execute a safe and efficient flight. The policies and procedures of organizing a flight need to be relayed and practiced throughout the staff and personnel. Maintenance is also a key item that needs to be looked at in order to improve and execute the quality and service of the industry.
These significant changes in the market environment and fundamental shifts in customer demands are requiring the operator to re-focus competitive strategy, achieve low cost or differentiate it by enhancing product attributes to adds value for the customer. Globalization, Airline Alliances, Frequent Flyer Programmes and Integration in tourism sector have all...