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Airline Industry & Hawaii

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Deregulation of the American airline industry happened quickly and abruptly, especially compared to the deregulation of European airlines (Wada 49). Competition for passengers became fierce, and numerous airlines who began the 1980s did not survive (Pan Am, Air Cal and Eastern, for example). As a result of this competition, marketing efforts became intense. It was no longer enough for airlines to convey the message that they could transport passengers from point A to point B. Instead, they had to demonstrate that they could do it economically, safely and on time. The 1980s were a time of consolidation; the early 1990s have seen a marked decrease in yields and loads, and the airline industry is now developing creative programs to increase its profitability. This research considers the overall airline industry and its key success factors, and considers what the airline industry could do to better serve the Hawaiian market.

Technology Related Key Success Factors

Airline reservation systems are directly associated with the airline's ability to conduct business. Reservations for airlines are made principally through one of two methods: customers either call individual carriers directly to make their reservations, or they use a travel agent. Customers who call directly receive information for that particular airline only; one of the benefits of using a travel agent is that the agent can provide the customer with schedules and fares which most closely match

. . .
tributionRelated Critical Success Factors For airlines, the issue is not the distribution channels that are used, but rather the access to routes and gates at airports. The greater the number of gates, and the better the routes that a carrier has, the better the opportunity for being able to run a profitable business. During the 1980s and 1990s, some carriers combined forces through acquisitions and mergers to obtain access to other carriers' lines. This consolidation, coupled with cost-cutting measures, has helped the industry recover from a slump in the late 1980s (Golden 39). Marketing Related Critical Success Factors Frequent flyer programs were the airlines' attempt to build carrier loyalty, and to increase the passengers, especially business passengers, who fly a given airline. Instead of passengers always seeking out the lowest fare, passengers are more likely to seek out a ticket with the carrier whose frequent flyer program they belong to. While a passenger could accumulate miles on separate carriers, the result would not be as favorable to the passenger as if the miles were accumulated on one airline. Frequent flyer programs became especially important to business travelers, since individual passengers could br
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Some common words found in the essay are:
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Approximate Word count = 1579
Approximate Pages = 6 (250 words per page)

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