Southwest airline co and cost accounting essay

Medicare is the second largest health care payer in America, trailing only Medicaid.

Southwest airline co and cost accounting essay

This is a unique opportunity to invest in a new concept in the aviation industry which offers attractive returns and a clear exit strategy in the public markets within 3 to 5 years. Vision SkyTrails' aim is to establish itself as a niche player in the long-haul market of business travel.

By continuously focusing on the needs of the premium-class business traveller, SkyTrails will provide the best value proposition in the markets it serves. Overview SkyTrails is the project name for a new airline company that will focus on single class long-haul scheduled flights.

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SkyTrails will capitalise on the widening gap in long-haul travel between business and economy class. SkyTrails will operate Boeing aircraft configured with 80 seats which will provide a very spacious and pleasant environment.

The aircraft will be equipped with the latest technology in order to enable the business traveller to use his time efficiently while travelling. The company will start by leasing two aircraft and expand its fleet to 6 aircraft by the second year of operation. It will offer customers a compelling value proposition: In addition to an attractive price, SkyTrails will offer passengers considerable time savings, convenience, and will focus on creating a lifestyle appeal.

The business model contemplated enables the company to reach a break-even point with 40 passengers per flight 50 percent load factor which significantly reduces the risks associated with typical airlines that need a greater number of passengers to break-even.

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In many ways, the SkyTrails model replicates the benefits of the very successful regional jet model on a long-haul basis. Inover 2. Given that no airline currently serves the North Atlantic route from Stansted, SkyTrails will be uniquely positioned to take advantage of the unserved demand that exists.

Southwest airline co and cost accounting essay

Stansted is the fastest growing airport in Europe with 9. It is the hub of low cost airlines Go Fly, Ryanair, and Buzz, all of which are experiencing tremendous growth and an increase in business travellers.

They claim that as many as 40 percent of their passengers are travelling on business. SkyTrails has already obtained landing and takeoff slots at Stansted and JFK airports for its initial flights.

Total traffic from U. With a break-even point of 40 passengers per flight, SkyTrails will also be able to target medium and low density routes offering an enormous potential for growth and an important competitive advantage.

Management It is important to note that during the first 12 months the operations will be handled by TravelAir which has ETOPS certification, thus taking away much of the operational burden from SkyTrails' management and ensuring a timely launch. By targeting such a dense route, SkyTrails initial market share will not be significant enough to be considered as a threat by the major transatlantic carriers.

Existing players will only be able to react with price which is only one aspect of the SkyTrails concept and by no means the most important. Key Success Factors SkyTrails believes that the following factors will be key to the company's success: Management and Culture SkyTrails has hired experienced airline professionals in order to ensure the operations are well managed.

Blending experienced airline professionals with a young creative management team will be a successful combination which will continuously look for innovation while maintaining a high level of professionalism.

Getting the right combination will be key in executing this venture successfully. The company will also focus on building a strong corporate culture that will help to differentiate itself from the competition and sustain a high level of motivation while maintaining cost control. More than just an airline, a lifestyle SkyTrails will differentiate itself as much as possible from the traditional airlines.

Passengers flying on SkyTrails will identify to a lifestyle. SkyTrails has hired industrial designer Ric Sloan to work on the interior of the aircraft. Ric Sloan is one of the leading contemporary industrial designers and is viewed by many as one of the world's most fashionable.

Superior Product and Service With an passenger configuration, the cabin of the Boeing will look more like a private jet than like a large mass transportation aircraft. Boarding and disembarking will be much faster given the low number of passengers.Southwest Airlines in Culture, Values, and Operating Practices * Problem statement: Southwest Airlines has high growth and high profitability.

However, its cost advantage is not as big as in prior years. * Scenario: Southwest Airlines based in Dallas . but deliver us from evil: For thine is the kingdom, and the power, and the glory, 1 Chr. for ever. Amen. SkyTrails Airline plans to establish itself as a niche player in the long-haul market of business travel.

By continuously focusing on the needs of the premium-class business traveller, SkyTrails will provide the best value proposition in the markets it serves. An average of , foreigners a day in arrive the United States. This group includes 3, who have received immigrant visas that allow them to settle and become naturalized citizens after five years, and 99, tourists and business and student visitors.

Southwest airline co and cost accounting essay

Feb 23,  · Based on the figures reported by Bureau of Transportation Statistics and Southwest Airlines’ own financial metrics, we estimate that it likely costs the company . Source: CAPA - Centre for Aviation and airline reports. Growth of Southwest Airlines Co.

annual net profit (loss): to Source: CAPA - Centre for Aviation and airline reports. At the same time Southwest has sustained a measurably strong balance sheet.

Its leverage at the end of 2Q was 37%, and its cash in hand was USD4 billion.

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