The Backbone Of The Airline Industry - 754 Words

The backbone of the airline industry is the men and women that operate the aircraft for the world’s airlines. The nation’s airline pilots are some of the most skilled technical workers in the workforce. The skillset of a commercial pilot does not come cheap with the average commercial captain making over $165,000 per year (Time, 2016). The employment cost of running an airline has never been more, paving the way for unmanned aircraft to take over. Labor Costs Labor cost is the number one expense for operating an airline. According to airline.org, over 32% of an airline’s operating expense can be related to labor costs (A4A Quarterly Passenger Airline Cost Index: U.S. Passenger Airlines, 2016). Labor cost is a complex issue as it relates to commercial airlines. Flight crewmembers are limited under the Federal Aviation Regulations (FAR) to strict limitations on work and duty rules. An example of FAR’s that limit the efficiency of airline pilots are eight in a duty period and 30 in 7 Federal Aviation Regulations. Flight crewmembers are limited to eight hours of flight time between rest periods. The time between a rest periods is considered a duty period and crewmembers are unable to operate an aircraft greater than eight hours in a duty period. Additionally, flight crewmembers cannot exceed thirty flight hours in a rolling consecutive seven day period. The above mentioned rules reduce the efficiency of labor moving aircraft resulting in the need to hire moreShow MoreRelatedSouthwest Airlines And The Airline Industry946 Words   |  4 PagesExecutive Summary Southwest Airlines is a competitor in the airline industry who models themselves as a low fare company who cares about people. These two aspects are that backbone to their business. It is what sets them apart from their major competitors, such as Delta/Northwest, Continental/United, JetBlue, and Allegiant. Government regulation has allowed for more travel due to deregulation. This means there are more consumers than ever entering the industry. As more consumers enter the marketRead MoreOrganizational Competitive Strategies-Porters Five Forces Model (AIR ASIA)763 Words   |  4 Pages in this assignment, can be used to access the competitiveness of the airlines industry. It can review the competition within the industry plus checks for threat from outside. Bargaining power of supplier-High- In every industry, there has to be someone to play the role of a supplier. It is important to know the power of the supplier as it will affect the industry. There are only two main suppliers in the airline industry, Airbus and Boeing, thus there isn’t much of an open option. Not forgettingRead MoreOutsourcing In The Airline Industry833 Words   |  4 Pagesmanufactures like Boeing and Airbus to airlines outsourcing their maintenance, ground labor, even ticketing and customer service. Usually most proponents of outsourcing will cite that it saves money and possibly increases knowledge sharing, which can lead to new innovations. Those that are against outsourcing often bring up the fact that you can easily loose quality control, poor customer service and possible jeopardize safety in the pursuit of saving money. On the airline level outsourcing has taken overRead MoreSouthwest Airlines and Its Business Strategy 1097 Words   |  5 Pagesï » ¿Corporate Strategy Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce, Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry, Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the shortRead MoreFinancial Issues Faced By Delta Airlines1358 Words   |  6 Pagesissues faced by a creative, innovative, and a well-established airline, Delta Airlines Company, which had successfully earned a reputable name in the airline industry with all its significant efforts. The company started its operations in the year 1928 and with the help of strong and effective leadership, the company successfully gained access to new routes, which ultimately resulted in the increased revenues for the company. The indust ry is filled with the number of competitors including the low costRead MoreBoeing Versus Boeing : Clash Of Industry Giants1113 Words   |  5 PagesBoeing versus Airbus: Clash of Industry Giants The applied science of flight can trace it roots back to the Montgolfier balloon in 1783. The birth of aviation, a lighter – than – air balloon, took the European continent by storm. France, Germany and the English had had their own experimental variations in this new methodology of travel. Each experiment slightly different, experiments in controlling flight through paddles, fabrics, heating sources. This eventually evolved into delivery of mailRead MoreAnalysis Of Coca Cola And America Airlines1374 Words   |  6 PagesFortune is an American organization that is responsible for the ranking of World’s biggest Companies in terms of annual income return and the profits that companies acquire at the end of every financial year. Coca cola and America Airlines are featured in Fortune 500 as World performing companies though American seem to unsuccessful compared with Coca cola which is selling in the global market and its market trend growing daily following its use of the modern supply chain for a classic beverage.Read MoreSouthwest Airlines: Using Human Resources for Competitive Advantage1445 Words   |  6 Pages Southwest Airlines: Using Human Resources for Competitive Advantage Executive Summary Southwest was founded in 1971 with a fleet of three Boeing 737 aircraft. Headquartered at Love Field in Dallas, the airline followed a strategy of low fares, few frills, and excellent customer service. Early on, the airline faced many political and regulatory challenges including the Wright Amendment, which prohibited the carrier from offering direct service into Love Field from any state other than TexasRead MoreSpecial Organization Features in Companies and Their Effectiveness1225 Words   |  5 Pagesorganizational culture features suitable to the organization and its people that ensure a win-win situation for the organization, its people and valuable customers. Southwest was established in 1967 by Rolling King and Herb Kelleher as an intrastate airline. It is now the fourth largest major airliner in USA and is trading on the New York Stock Exchange. The organization religiously reminded themselves that airplanes dont make money on the ground. Flights have to be maximised with the least numberRead MoreTourism Strategy of Nepal936 Words   |  4 Pagesinternational airport at Bara district and upgrading of few domestic airports (Adhikari, n.d.). In order to develop tourism throughout the country, The Ministry of Tourism and Civil aviation produced â€Å"Tourism Vision 2020† in consultation with its industry partners (Tourism Vision 2020, 2009). This booklet was published in May 2009. Visit Nepal 2011 was targeted to increase visitors mainly from India and China due to the growing economy power of the 2 countries as well as being 2 of the worlds most