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Case Study Management

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This case is about the airlines. There are some airlines that are trying to compete each other some are successful and some are failing in business. There are some reasons to be a successful or failing for example a robust economy is packing planes and allowing big carriers to jack up airfares. At the same time, poor service and sky-high business fares are sending many travelers in search of alternatives to the major airlines. But against this rosy backdrop, many new entrants are struggling or going out of business. Pro Air Inc., recently grounded and tiny Access Air in Iowa have both filed for loss of quality protection. Vanguard Airlines Inc., damage by high fuel prices, operational problems, and too-rapid growth, is losing millions of dollars from its Kansas City, Missouri base. It is easy to enter in a business but very hard to succeed. There are large or powerful industrial company have been blame to destroy small fry with aggressive in business action, fortress hubs, and big flier programs.

And there are also success stories. Jet-Blue Airways, is the best faineance start-up in airline history, appears to be off to a phenomenal start since February 2000. The low fare airline that offers live TV and leather upholstery is filling 72 percent of the seats on its eight new airbus flies to 9 cities, going up to 12 in November 2000. David Neelman (CEO)

Says the airline, based at New York's airport, posted a double-digit profit margin in august and should be profitable this year. It just raised another $30 million form its investors on top of the $130 million it started with. Six year-old Frontier Airlines Inc. in Denver seems to be on course. It is benefiting in part from operational and labor woes at UAL's United Airlines. Second quarter net income doubled, to more than $16 million, as the airline attracted Spirit Airlines has proven to be a survivor, after shifting its strategy to avoid markets dominated by on



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