The U.S. Airline Industry

Assignment: Week 2 Business Case Analysis

Date Submitted: 02/06/13

Course MBA526

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Student's Signature Ebony Euniece King

The U.S. Airline Industry Business Case 2 Analysis

Ebony King

Park University

The U.S. Airline Industry Business Case 2 Analysis

Unexpected events can cripple the industry as a whole. The devastating "financial crash of 2008" (Grant) and the recession left many business's bankrupt. The airline industry took a huge plunge in sales. With the huge decline in passenger traffic this caused a huge drop in sales. This left the airline industry strategizing to make a return. Businesses with great leadership skills can strategize from the struggles of losing money to being back on top. There is a need for the airline industry to evaluate and make changes to be back successful. The airline industry needs to focus on forecasting, operational costs, and differentiating themselves in order to return back on top.

Synopsis of the Case

Service was also a major concern. The airline industry quickly was faced with having to make changes. The industry went through a period of tough times. With the industry being regulated, then deregulated, then the entering of new low cost carrier, hurt the industry. Operational cost was the major issue of concern. Grant, "the cost of labor, fuel, equipment, and airline facilities are the ultimate problematic areas in operating costs. (Grant 2010) Customer service also is an area of concern. The industry wants their customers happy.

Relevant Factual Information about the Problem or Decision the Organization Faced

Customer service and operational cost was the main areas of concern for the airline industry. The cost of labor, fuel and equipment cost the industry. With these areas cost boosting this caused a decline in customers traveling.

Explanation of Relevant Concepts. Theories and Application Derived from Course Materials

The airline industry was secure in knowing