Flights started back in 1903, and since then air travel has remained tall as a crucial means of transportation for both people and products. A revolution in the way people travel around the globe has been brought about since the invention of the first aircraft. In this case, this is an industry relied upon by quite a large number of people, not for transport only, but as a major way of earning a leaving (Jones, 2000). The US airlines have been affected by many complications in its history. Some of these complications include incredible advancements in technology, presidential interventions, as well as deregulations, and bankruptcies.
However, the years 9/11 following the attacks emerged to be the most tumultuous, as well as formative to the industry. The industry, despite the attacks, has been able to change in several ways. The industry has been seeing a decline in both fares and yields leading to many firms to down size. They also reduced their workplaces to compensate for these huge losses. Security in these airlines has been beefed up where the security administration, which is a part of the Homeland security department, took over the initiative of screening passengers in all the airports in the US.
Some of the oldest airlines such as the Mexican airlines have ceased their operations, and others such as the Iraq Airlines that were directly affected by the American foreign policy closed their operations (US Airways, 1997). The other crucial thing to note about the industry is that radical airlines have been able to merge in the united continental Holdings. This was one way of reducing cost and improving on their services. This move was triggered to by the fact that these leading carriers were so much focused on cutting down their amenities, as well as battling for fuel prices; the low-level carriers were busy stepping their game up. Through the analysis conducted in 2006, it can be seen that the customer flying experience was going down in the industry despite the technology advancements made in the companies.
The industry has also been affected by the fuel prices skyrocketing. These are some of the advancements and challenges affecting the industry. The American airlines comprise a number of firms or Airlines such as Air Tran. The airline offers its services in the Eastern side of the United States and the Midwest. The Airline offers a roundtrip, acquisition commerce class, concourse connection, and Saturday night stay. As a way of trying to acquire a bigger market share by making sure that they give support to all worthwhile causes in every community that offer their services(Jones, 2000).
They are kid sports and a group of employees taking place in the community development projects, among others. All these funds are set aside from the profits the Arline makes. The company was once a low fare leader in the US airlines industry. The company has been able to record revenues of 7-8 %, which has increased up to 13 %. These revenue gains were achievable despite the fact that there was a traffic drop of 0.3%.
All this is in respect to the seat miles and the revenue passenger’s miles. The other company in the US Airline industry is the American Airlines – the well-known airlines in America and an AMR subsidiary corporation. The company headquarters is in Texas, which is adjacent to its largest hub. Its operations comprised of the domestic and international networks. AA services accounts for 85% of traffic, as well as 83 % landing fees. According to the market survey conducted in 2008, the company has been able to have a record of 14.
8% as a domestic market share in the US airline industry. The company had anticipated making a profit of around $189 million, but the bankruptcy expenses that amounted to $54 million affected it. The company has been largely affected by the bankruptcy to a point of recording a loss of $241 million. In its operational objectives, the pilots association forwarded claims that the sick leaves given to the pilots result highly to the operational hiccups of the company (US Airways, 1997). This forced the company to reduce its schedule by a 1- 2 percent.
The aim was to minimize any possible impacts on customers travel plans and ensure that customers receive the best services ever.America West Airlines – this company was located in the western side in the US, but in 2005, it merged with the US airlines. The airline was established in 1981, and its operation hubs were located in Las Vegas and Phoenix. The company was able to acquire a market share for both domestic and international market by the year 1989. In 1991, the company became bankrupt. Therefore, it restricted all its international flights and paired to other airlines such as Mesa so that it could be able to offer regional flight services.
It was able to emerge from bankruptcy in 1994, and it attempted to start international routes, but they were not successful. The company merged with the US Airways so that it could be able to increase its market share and win over its competitors (Davies & Quastler, 1995). The airline firm (America West Airline) holds this mission statement ensuring that all its employees have a good working environment. While the Air Tran, has this as its mission statement, offering affordable and comprehensive services to all customers. America west Airline employees, have equal chances to learn, and develop their personal skills.
They also encourage innovation and creativity among the employees. Employees will also enjoy equal rights without any form of discrimination, and it is their obligation to market the companies weell to their customers. This clearly shows that the company is committed to endowing their employees. In the Air Tran, customers are given the first priority, and the company seeks to satisfy them. The mission statements are unique in each company since every company has what it prioritizes more. One puts emphasis on outstanding customer services, as well as efficiency in their operations.
While the other aims at seeing its employees earn loyalty dedication, as well as innovation; the reason is that they are the distinguishing factor between these companies and others. According to these companies’ mission statements, it is clear that employees and customers are the key determinants of the company’s success. The employees market the company operations to their potential customers. This contributed to the respect endowed to these employees by the management. Therefore, they offer the right services to their customers giving the company a good reputation. However, there has been observed an increase in the operational unreliability by the APA.
All this happens because of the delays of mechanical factors and the management failure to cease from calling all furloughed pilots back to work. These operational uncertainties are caused by poor management objective in handling the sick leaves that are filled by pilots. As a result, there are cancellations of flights and inconveniencing the passengers (Ben-Yosef, 2005).For these airlines to be effective in their operations, they need to put some factors of metrics into considerations. These factors include safety, cost, scope, time, quality, resources, and actions.
In every operation, the safety of the employees as well as customers is inevitable. Cost and resources have to be managed so as to ensure a profit for the operating company. The company has also to specialize on its scope to ensure quality services to the customers. Time in all businesses is a key factor. Customers need to get served in time so as to encourage them come another time.
Time management in business satisfies customers thus creating goodwill for the business. Therefore, for these airline operators to be successful, the management has to be proficient, skilled and efficient (Davies & Quastler, 1995). In conclusion, these airline operators can be said to provide good services although not fully satisfying. The effectiveness of operations in these companies depends on their management as well as employees. The dedication of members to deliver good services to customers relies on management’s efficiency. As a result of this, come the emphasis on employees in America West Airline and the emphasis on customers in Air Tran.
Although, the mission and operations statement for the two companies are different, they all sum up to one objective of maximizing profits.