strategic-management

48 CHARLES M. BYLES
EXHIBIT 12 JetBlue’s Top Domestic Markets*
(February 2008–January 2009)
Market Volume Share**
New York, NY 5,800,000 24.86%
Boston, MA 1,820,000 16.68%
Orlando, FL 1,570,000 9.95%
Fort Lauderdale, FL 1,380,000 14.78%
Long Beach, CA 1,100,000 77.47%
Other 8,680,000 1.49%
*Based on the total enplaned passengers at all airports in a city.
**The table shows the airline’s share in each of the markets.
Source: Reproduced from RITA BTS Airline Data, 2009 Carrier Fact Sheets,
April 29, 2009; http://www.transtats.bts.gov/printcarriers.asp?Carrier=B6.
EXHIBIT 13 Southwest’s Top Domestic Markets*
(February 2008–January 2009)
Market Volume Share**
Las Vegas, NV 7,600,000 39.20%
Chicago, IL 6,690,000 18.73%
Phoenix, AZ 5,640,000 30.39%
Baltimore, MD 5,280,000 53.28%
Dallas, TX 3,800,000 95.39%
Other 72,240,000 12.98%
*Based on the total enplaned passengers at all airports in a city.
**The table shows the airline’s share in each of the markets.
Source: Reproduced from RITA BTS Airline Data, 2009 Carrier Fact Sheets,
April 29, 2009; http://www.transtats.bts.gov/printcarriers.asp?Carrier=WN.
3. How sustainable is the practice of having separate ancillary fees as a means of generating
additional revenues? Should AirTran make any changes?
4. What are the main external opportunities and threats facing AirTran? List these in
order of priority.
5. How important are fuel prices (compared to other costs) as a determinant of
profitability? Is AirTran taking appropriate action to manage these costs now and in
the future?
References
“A unique airline philosophy—one that works,” AirTran Web site, March 12, 2009,
http://www.airtranairways.com/about-us/corporate_info.aspx.
“Airline Classification,” U.S. Department of Transportation, March 22, 2009,
http://ostpxweb.dot.gov/aviation/airlineclassifications.htm.
“Airlines Look to Fees for a Financial Edge,” Wall Street Journal, February 9, 2009,
http://blogs.wsj.com/middleseat/2009/02/09/airlines-charging-more-baggage-feesrefreshment/.
“AirTran,” Raymond James Institutional Investors Conference, March 2009,
http://www.sec.gov/Archives/edgar/data/948846/000094884609000006/ex99-1.htm.
“AirTran Airways History,” AirTran Web site, March 21, 2009, http://www.
airtranairways.com/about-us/history.aspx?print=true.