Regional airline management Term Paper Example | Topics and Well Written Essays - 1750 words

Regional airline management - Term Paper Example The company chosen for the present study is Great Lakes Airlines which is a US based regional airline company headquartered in the USA. The company began its operations in the year 1977 with flights in Iowa. The company since then has expanded with a present fleet size of 38 aircrafts and covering about 64 destinations across the US.   The company went public on April 1994 and its stocks are presently listed and actively traded on the bourses of the NASDAQ stock exchange (Great Lakes Airlines, n.d.). The company mainly uses the Beechcfart 1900D aircraft that has a capacity of 19 seats. The airline mainly operates in the regional markets of the US (Great Lakes Airlines-a, n.d.). The company focuses on service quality and punctuality to gain strategic competitive advantage in the market. The coming sections would analyse the competitive and growth strategies of the airline towards generating a favourable position in the highly competitive business segment. The cost for available seat mile (CASM) value that shows the net of the operational expenses upon the total seat based miles flown by the airlines. The value of the CASM for Great Lakes Airlines in 2011 is pegged at 32.7 cents that represents a 4.5 percent increase from its corresponding figures last year (Great Lakes Airlines-b, 2011, p.15). A higher value of CASM implies that a firm would be easily able to reach the breakeven point (Kundu, 2010, p.105). In this regard the increase in value over the last year represents a scenario.... The company began its operations in the year 1977 with flights in Iowa. The company since then has expanded with a present fleet size of 38 aircrafts and covering about 64 destinations across the US. The company went public on April 1994 and its stocks are presently listed and actively traded on the bourses of the NASDAQ stock exchange (Great Lakes Airlines, n.d.). The company mainly uses the Beechcfart 1900D aircraft that has a capacity of 19 seats. The airline mainly operates in the regional markets of the US (Great Lakes Airlines-a, n.d.). The company focuses on service quality and punctuality to gain strategic competitive advantage in the market. The coming sections would analyse the competitive and growth strategies of the airline towards generating a favourable position in the highly competitive business segment. Competitiveness Cost Structure Cost for Available Seat Mile The competitive factors for an airline can be analysed from some of the key operational and financial figur es. The cost for available seat mile (CASM) value that shows the net of the operational expenses upon the total seat based miles flown by the airlines. The value of the CASM for Great Lakes Airlines in 2011 is pegged at 32.7 cents that represents a 4.5 percent increase from its corresponding figures last year (Great Lakes Airlines-b, 2011, p.15). A higher value of CASM implies that a firm would be easily able to reach the breakeven point (Kundu, 2010, p.105). In this regard the increase in value over the last year represents a scenario in which the company has fared poorly in the present year that is indicated by the higher figure of CASM. Revenue per Available Seat Mile Another significant factor includes the Revenue per Available Seat

Whether Red Bull should invest in the Formula 1 Racing Championship Thesis

Whether Red Bull should invest in the Formula 1 Racing Championship next year or not - Thesis Example The categorisation of the drink as an energizer holds back in the Thailand culture where the same is known as â€Å"Red Water Buffalo†. Further the brand gains a larger market space owing to the use of strategic marketing activities incorporating the creation of â€Å"buzz words and also through the sponsorship activities for extreme sporting events. The target segments for the brand consist of groups like students and athletes and also bars focusing on energy drinks. The sponsorship activity carried out by Red Bull for extreme sporting events helps the company in building a separate image of itself in the global drinks and beverage market. An estimate made during 2004 reveals that around $600 million have been spent by the company on sponsorship events involving Formula One racing events, sponsoring athletes or other musical and cultural functions. A comparison made with Coca Cola shows that where Coca Cola expended around 9 percent of its marketing revenues on sponsorship e vents, Red Bull happened to expend around 30 percent. (Roll, 2006, p.199). Another estimate obtained during the 2001 period shows that this sponsorship activity of Red Bull in extreme sporting events helped the same to conduct a sale of around 1.6 billion cans worldwide. This figure when compared to the 2000 period reflects a rise in around 80 percent in the company’s sale paradigm (Gelder, 2005, p.248). ... This figure when compared to the 2000 period reflects a rise in around 80 percent in the company’s sale paradigm (Gelder, 2005, p.248). The paper in this connection aims to conduct a research on whether Red Bull should continue investing in the Formula One events by reflecting on the probable advantages or opportunities that it can gain through such activities. Aims and Objectives Aims The main aim of the project is to evaluate the future of investing activities of Red Bull in the large scale sponsorship activities pertaining to extreme sporting events. In that it focuses to understand the potential of previous investment made by the company in this area and the advantages and opportunities gained on that behalf. The project also aims to compare the sponsorship activities of Red Bull to the activities of other companies also investing in sponsorship activities. Further the project also aims to understand the factors and situations evaluated by Red Bull before rendering potenti al investments in such directions. Objectives To understand the different marketing strategies of Red Bull To understand the reasons as to why Red Bull invests in Formula One championship events To evaluate the expenses or the cost the company incurs behind making such potential investments and the revenues that the firm tends to gain on that behalf To evaluate the future considerations as to whether Red Bull should continue investing in the sponsorship activities for Formula One championship for the 2011 period keeping in view the expenditure and the opportunity scenario for the 2010 period To compare the investment activities of the company in the extreme sporting events by drawing in examples