Current Market Conditions Essay

2752 words - 11 pages

Current Market Conditions PaperIn this paper he or she will find an analysis of the current market conditions for the airline industry. The learning team will cover the airline industry's market structure, prices, and competitors, impact of government regulations, and a couple other topics. Team D will also cover some of the issues and or opportunities that the airline industry faces.Market StructureIn the United States the airlines are classified by the government on the basis of the amount of revenue generated from operations. These classifications are major, national and regional. All United States airlines hold two certificates from the federal government, a fitness certificate and an operating certificate.To be called a major airline, the airline must generate operating revenues of more then one billion annually. The airline generally provides nationwide and in some cases worldwide services. With economy today several major airlines have had to fill for bankruptcy. The United state has nine major airlines; America West, American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, Southwest Airlines, United Airlines and USAir. All nine of the major airlines carry both passengers and cargo. The United States does have three major cargo only airlines. They are DHL, FedEx, and the United Parcel Service. (Structure of the Industry)To be considered a national carrier the airline must operate with annual revenue between $100 million and one billion. Many of the airlines in the category serve particular regions of the country. A few examples of a national carrier in the United States are; Mesa Air, Midwest Express and Hawaiian. (Structure of the Industry)The third type of airline in the Unites States is the regional airline. Most regional airlines fly passengers between small cities and major cities. Most regional airlines fly the smaller jets or even prop planes. Regional airlines are divided into three groups; small, medium and large. The biggest divisions of regional airlines in the small regions sometimes call commuters. To be in this division the airline can not operate any aircraft over 61 seats. This airline also does not have to require a fitness certificate from the government; however, the airline is required to register their services and make certain annual reports to the government. (Structure of the Industry)Impact of new companies entering the marketWhen new airlines come on board one of the first things the major airlines try to do is match the cost of flights. When this happens a pricing war starts between all carriers. In today's economy the airlines are struggling, therefore, when an airline goes into a price war, extra stress is put on the budgets. However, pricing wars are good for the consumer in the beginning, but when pricing goes backup the airlines are trying to make up for the resent loss.PricesToday, the airline industry is facing unprecedented challenges worldwide. These days ticket pricing is directly...

Find Another Essay On Current Market Conditions

Applying Different Sales Strategies to Meet Market Needs

1207 words - 5 pages their marketing strategies according to current market conditions in an attempt to improve their financial outcome. The promotional mix, which is the combination of price, product, placement and promotion, is developed after both the (SWOT) and the controllable measures are understood. The retailer will use the combination of market evaluation tools to create a sales strategy, reach a target market and promote a product or service consumers will

Current Macroeconomic Situation in the United States

961 words - 4 pages indication that conditions that foster high economic growth are gradually improving. The improvements in fundamentals that promote economic growth are being limited by huge financial drag, which can be dealt with through enactment of appropriate fiscal and monetary policies. In light of the current macroeconomic situation in the U.S., one of the appropriate policy initiatives that the Federal Open Market Committee is maintaining the current

What Is An Efficient Market?

898 words - 4 pages transactions, taxes or market membership fees. The expectation of all market participants concerning economic indexes and presumable results are the same. There is, however, one remark to above-stated, all of these conditions cannot be implemented in a real market in full: information is not free of charge, taxes and overheads exist, investors can have a different behalf (for example short or long terms strategies). The basic theory describes

Increasing Competition in the British Insurance Sector of the Market

1566 words - 6 pages The increase of competition in most industries worldwide has led organizations to the development of policies that will help them to face their rivals. However, market conditions are not stable; firms that are interested in keeping their competitiveness need to continuously update their strategies; the level of industry competition is differentiated across countries in accordance with specific criteria: the position of the country in the

Acuscan Critical Thinking Case Study

1682 words - 7 pages involvement of other resources 2. Explain the arguments made by each of these people. a. Cliff O'Connor – believes that AcuScan needs a new product for their market segment. Their current product has little growth potential which is indicated by dropping revenues and current economical conditions. He also understands that the current out lay of capital cannot exceed the original request of $575K. According to Pat and Chris, "a confidential source

Differentiating Between Market Structures

1109 words - 4 pages share, although increased market share does not always mean increased profits. A perfection competition will max its profits if the current prices are higher than the total cost and it maximizes its output. All the conditions have to be met in order for this to happen. A few of the conditions are: sellers and buyers both procure the market price with no changes, a considerable amount of companies are competing, the product or service is identical

Current Market Condition Paper

2461 words - 10 pages that the current economical challenges have forced consumers to reduce spending. To cut cost andcurrent market conditions paper 4reduces prices, Starbucks has implement changes. "One of the new cost cutting moves announced was the elimination of ready-brewed decaf coffee after noon" (businessweek, 2009). By doing this the company is able to pass the saving to consumers by reducing the prices of the products. It has also cut down on less needed

Market Analysis

1151 words - 5 pages evaluate current training content and techniques to ensure full compliance. The current local and national economic situation changes the total market. Assisted living facilities and supportive living facilities have a finite amount of funds. Most residents of these facilities have fixed incomes. As other expenses increase for these businesses, their desire to spend on training diminishes. MÀJEN must continually balance the value of services and

Real State Investment Strategy

1167 words - 5 pages increases. This correlates with the current increase of housing sales in Chapel Hill. When an investor looks to buy a property to flip that investor must consider market conditions, cost of remodeling and hold time. Both subject properties are similar in size, and both have pros and cons. When assessing the flip strategy I was able compare what homes with similar square footage, number of bedrooms, and bathrooms have sold for. The chart below

Retail Data Opens New Global Territory

1342 words - 6 pages to better understand why global consumers make the choices they do will give retailers large and small time to react to the ever changing global market. Conclusion Retail is a fast paced environment that is ever changing. Learning to adapt to those conditions can be challenging to achieve market success. Large retail companies who are successful today might find themselves out of business in the future without the foresight to research and

Nike, Inc.

1297 words - 5 pages capital is measured on an after-tax basis.Investors will only invest money if they expect to earn enough to compensate them for:* The risk they are taking by making the investment,* Current capital market conditions such as inflation.Cost of Capital for Nike, Inc.Step in calculating cost of capital:1. The After-Tax Cost of Debt (kd)* The pretax cost of debt is equal to the the yield-to-maturity on the firm's debt adjusted for flotation costs

Similar Essays

Microsoft Current Market Conditions Essay

1331 words - 5 pages Current Market Conditions PAGE 6 Current Market ConditionsUniversity of PhoenixECO 361Team B: Sara Leon, Charles HillTimothy JeffcoatJune 4, 2007Microsoft Current Market ConditionsMicrosoft is the leader in software, and services that assist people and businesses capture their full potential. Microsoft is leading in the operating system business. Microsoft has been such a powerhouse it has been one of the few corporations of becoming a

Fed Ex Current Market Trends And Conditions

4915 words - 20 pages Project Overview PAGE \* MERGEFORMAT 19 Current Market Trends and Conditions-FedExMarch 15, 2010University of PhoenixFedEx - Current Market Trends and ConditionsThe purpose of this paper is review the current market trends and conditions for FedEx. There are numerous ways that a company can become a success or become a failure. The market trends and conditions are just of those reasons. Team A has analyzed the market trends and conditions by

Current Market Conditions Essay

1860 words - 7 pages why the customer loyalty and retention program are so important (AIADA, 2008). Continuing steps to remain in an optimal competitive position will require a refocus on the advertising campaign where Ford will focus on fuel efficient vehicles such as hybrids and economical gas and alternative fuel cars. Ford will slowly move away from the current advertising campaign which is focused on performance and gas guzzlers (AIADA, 2008). As the market

Case Study In Boeing

545 words - 2 pages individual business divisions. The key issues of the current conditions of the company are studied and described. The environment of the global market of the airplane industry is presented, and the future needs of the aviation and aerospace market are analyzed. The strategy of the company is examined from a value creation perspective. The value creation initiatives are examined for employees and customers. The TWOS analysis is undertaken and is used to