Domestic Flight Leaders Only

The airline carrier line of business has been a very popular topic in the last few years.  Many changes have taken place such as bigger and better planes, new competitors, mergers, and some not so good news.  The U.S. carriers have been dropping in their ranking internationally over the last several years.  Asian and Middle Eastern competitors have been dominating the international market.  However, it was recently noted that the U.S. seems to be switching its gears and is taking a position to head into the international game stronger than it ever has.  The bigger U.S. carriers have closed their mergers and have adjusted their managerial approach and are on the rise again.

While all of these mergers were going on with the U.S. carriers, Asia and the Middle-East took advantage of the time to take over the international air traffic.  Both Asian and Middle-Eastern airlines dominated the international markets while all of this was going on in the U.S.  Also because of all of the mergers that the U.S. carriers have been going through, it has been noted that they have fallen a bit behind on the aircrafts they are using although this may be changing quickly with Boeings new product.

The chart below shows the ranking of airlines done by the World Airline Awards.  The first U.S. airline in the ranking was Virgin America ranked 26th.

2012

 

2011

2012

 

2011

1

Qatar Airways

1

11

Garuda Indonesia

19

2

Asiana Airlines

3

12

Virgin Australia

32

3

Singapore Airlines

2

13

EVA Air

16

4

Cathay Pacific Airways

4

14

Lufthansa

15

5

ANA All Nippon Airways

11

15

Qantas Airways

8

6

Etihad Airways

6

16

Korean Air

24

7

Turkish Airlines

9

17

Air New Zealand

7

8

Emirates

10

18

Swiss Int’l Air Lines

13

9

Thai Airways International

5

19

Air Canada

21

10

Malaysia Airlines

12

20

Hainan Airlines

23

The issue now is for the U.S. to enter the international market and make its presence known.  Latin America and Africa both had an increase in demand for air traffic but the U.S. missed the opportunity to enter the market during that team.  It seems that with all of the upgrades to the U.S. carriers, they should be able to hit the international market much more effectively the next time an opportunity like that arises.  It would be interesting to see how the U.S. carriers choose to enter the international market considering the different routes they can take to do it.  One of their many options is to rush into the situation to try and make an impact as soon as possible.  The concern with this is that they may try to cut corners to enter the market quicker.  This type of strategy usually comes at the cost of the customer.  Another option they have is to upgrade their fleets and then enter the market.  The downfall with this is time.  While they are upgrading their fleets, other international carriers may be upgrading their own fleets and pulling farther ahead which would make it more difficult for the U.S. to enter later.  They would also have to take into consideration the opportunity cost of taking an even longer time than they already have been.

If you were a U.S. carrier, what strategy would you use to enter the international market?  This does not have to be one of the methods listed above and can be your own idea.

Would you even consider waiting any longer to enter the market considering the state of carriers currently?

http://www.bloomberg.com/news/2013-06-02/u-s-carriers-ready-to-go-on-attack-after-mergers-iata-predicts.html

http://www.worldairlineawards.com/Awards_2012/Airline2012_top40.htm

Let’s Start a Business…Maybe We’ll Make Money

Has anyone ever considered how the product life cycle would apply to a business?  I am not referring to the product of a business but simply the business; the “business life cycle.”  The business life cycle follows the same path as a product life cycle starting with its introduction, followed by its growth and maturity, and finally the decline.  How would it feel to start a business and never make it past the introduction phase?

In the last month, a group of successful entrepreneurs got together to talk about the issues that came up while starting their businesses.  There were a few conclusive points that don’t really get mentioned too often in the news.  The common themes were the constant shadow of failure, and how failure can effect founders later.  The start up of a business is very pricey and can take quite the toll on your financial position at first.  The obvious goal is that the money you invest into your start up will at some point return back to you at a profit.  How would you feel to have the constant thought that your business may not make it?  After all the time, money, and energy that you put into trying to make a company successful only to find out a few years later that the only thing that came out of it was a pile of expenses and a bad reputation for yourself as a leader.

This was never something I thought about too deeply but these are the problems that founders deal with all the time.  Many people have dreams to start their own businesses, but how many have thought about the emotional side that comes along with the start up   You are constantly haunted of failure inside but need to keep a hard shell and show your confidence on the outside.  It’s particular hard for the founder as they have no escape route.  Employees can always quit and find a new job, but a founder quitting before seeing the company mature means failure; failure that will follow you forever.

Who do you go to for help when everything starts heading down hill?  “When people at your company go to lunch, they have a common theme — they can complain about management. But you are management. You can’t go to lunch and complain to anyone” (Forbes).   At this point it seems that pending failure is unavoidable.  As a founder, what do you do?  It seems that you have three main options: throw in the towel and accept defeat, change your business strategy and hope your new one is better, or wish for the best.

Has anyone ever wanted to start a business? If so, how much thought did you put in to the possibility of failure or was it simply never a possibility?

If you never had the desire to start your own business, what do you do when failure is inevitable?

Sources:

http://www.forbes.com/sites/theyec/2013/05/10/5-things-founders-dont-talk-about/

http://operations.blogs.ie.edu/2010/07/job-life-cycle.html

http://joshbersin.com/2008/07/31/make-learning-part-of-your-business-strategy/