abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Alaska Air Group Inc : Alaska Air Group Inc., is an aviation holding firm / corporation based in SeaTac, Washington which owns two certificated airlines operating in the United States: Alaska Airlines[3] and Horizon Air.[4] In 1985, it was formed and a year later the holding company acquired Horizon Air and Jet America Airlines. Jet America Airlines, and their employees were merged into Alaska Airlines in 1987. Alaska Air Group has no relationship to JetAmerica, an airline proposed in 2009.
Alaska Air Group subsidiaries employed 9,866 staff as recently as 2007, but have cut that number back substantially by 2008. It remains undetermined how many employees actually work for Alaska Air Group itself. Alaska Airlines operates only U.S. built Boeing aircraft with up to 172 seats while Horizon operates only Canadian built Bombardier aircraft with up to 76 seats.
The separation of the two companies is not due to "Scope Clauses," as is the case with other similar holding companies and their airlines such as Mesa Air Group and Freedom Airlines or Republic Airways Holdings and Shuttle America.[citation needed]
Alaska Air Group is the parent company and holding company of both independently "branded" Alaska Airlines and Horizon Air operations.
Strengths
* Despite downturns, over time air travel continues to grow
* Public acceptance of air travel as both a fast and safe way to travel
* Airline staff is highly trained and experienced
* Airlines have the ability to segment the market allowing them the ability to establish different levels of service and make associated pricing decisions
Weaknesses
* Airlines have a high spoilage rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
* Aircraft is expensive and requires huge capital outlays
* Large workforces spread over large geographic areas, including international points, require continual communication and monitoring
* While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors
Opportunities
* Airline market growth offers continual expansion opportunities for both leisure and business destinations
* Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground
* Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier
Threats
* A global economic downturn negatively affects leisure, optional travel, as well as business travel
* The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model
* Terrorist attack anywhere in the world can negatively affect air travel
* Government intervention can result in new costly rules or unexpected new international competition
Alaska Air Group subsidiaries employed 9,866 staff as recently as 2007, but have cut that number back substantially by 2008. It remains undetermined how many employees actually work for Alaska Air Group itself. Alaska Airlines operates only U.S. built Boeing aircraft with up to 172 seats while Horizon operates only Canadian built Bombardier aircraft with up to 76 seats.
The separation of the two companies is not due to "Scope Clauses," as is the case with other similar holding companies and their airlines such as Mesa Air Group and Freedom Airlines or Republic Airways Holdings and Shuttle America.[citation needed]
Alaska Air Group is the parent company and holding company of both independently "branded" Alaska Airlines and Horizon Air operations.
Strengths
* Despite downturns, over time air travel continues to grow
* Public acceptance of air travel as both a fast and safe way to travel
* Airline staff is highly trained and experienced
* Airlines have the ability to segment the market allowing them the ability to establish different levels of service and make associated pricing decisions
Weaknesses
* Airlines have a high spoilage rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
* Aircraft is expensive and requires huge capital outlays
* Large workforces spread over large geographic areas, including international points, require continual communication and monitoring
* While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors
Opportunities
* Airline market growth offers continual expansion opportunities for both leisure and business destinations
* Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground
* Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier
Threats
* A global economic downturn negatively affects leisure, optional travel, as well as business travel
* The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model
* Terrorist attack anywhere in the world can negatively affect air travel
* Government intervention can result in new costly rules or unexpected new international competition
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