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Charter and Low Cost Airlines

C/B/1135. Competitive advantage of US low cost carriers

WORDS:
2000
DATE:
2008
PRICE:
29.99 GBP

This paper responds to the following questions: During the 1990's none of the five largest air carriers in the US earned its cost of capital. Why do such low rates of return on investment persist in the airline industry? Despite the challenging industry environment, airlines like Southwest Airlines and JetBlue earned enviable returns. How? Why have all the low-cost subsidiaries of legacy airlines, including Delta Express, failed? What are the strategic options available to the cross-functional team that Mark Balloun co-leads in March 2002? Based on the information available to you in the case, what course of action for the Delta Express business would you have recommended to Delta' board at that point in time?

 

KEYWORDS: SouthWest Airlines, JetBlue, Delta, LCC, low cost carriers, legacy carriers,

 
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