An Analysis of a Strategic Transformation Plan: The Case of Alaska Airlines

Transcription

1 Fairfield University Business Faculty Publications Charles F. Dolan School of Business An Analysis of a Strategic Transformation Plan: The Case of Alaska Airlines Paul Caster Fairfield University, pcaster@fairfield.edu Carl Scheraga Fairfield University, cscheraga@fairfield.edu Copyright 2013 Transportation Research Forum All rights reserved. Peer Reviewed Repository Citation Caster, Paul and Scheraga, Carl, "An Analysis of a Strategic Transformation Plan: The Case of Alaska Airlines" (2013). Business Faculty Publications Published Citation Caster, Paul, and Carl Scheraga. "An Analysis of a Strategic Transformation Plan: The Case of Alaska Airlines." In Journal of the Transportation Research Forum, vol. 52, no. 1, pp This Article is brought to you for free and open access by the Charles F. Dolan School of Business at DigitalCommons@Fairfield. It has been accepted for inclusion in Business Faculty Publications by an authorized administrator of DigitalCommons@Fairfield. For more information, please contact digitalcommons@fairfield.edu.

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5 future as

6 and, and from

7 Aircraft and trafc servicing Operating prot,

8 2.03 Table 4: Alaska Airlines Reclassied Financial Data ($) Fuel costs Flight-related costs Passenger-related costs Flying operations (excluding fuel cost) Total ight-related costs Aircraft and trafc servicing Total passenger-related costs

9 Total ight-related costs ($) Average ight-related cost per ASM ($) and 2009

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11 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

12 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

13 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

14 endogenous.

15 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

16 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

17 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

18 % Airline i Airline i % Airline i Airline i % Airline i Airline i

19 Revenue effect Revenue effect Fuel (ASM) cost effect Unused capacities Available capacities Used capacities

20 (A Prex = Alaska, H Prex = Horizon, T Prex = Total (A + H), ST Prex = Summary Total),

21 (A Prex = Alaska, H Prex = Horizon, T Prex = Total (A + H), ST Prex = Summary Total) (A Prex = Alaska, H Prex = Horizon, T Prex = Total (A + H), ST, Prex = Summary Total),,

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23 The Growth Component Revenue effect of the Growth Component (i.e., lower expected revenue due to lower RPM) of the Growth Component (i.e., lower expected fuel costs due to lower RPMs) of the Growth Component (i.e., lower expected ight-related costs due to lower RPMs) Passenger-related cost effect of the Growth Component (i.e., lower expected passenger-related costs due to lower RPMs) The Price-Recovery Component Revenue effect of the Price-Recovery Component (i.e., higher revenue due to higher airfares) of the Price-Recovery Component (i.e., higher costs due to higher fuel prices) of the Price-Recovery Component (i.e., higher costs due to higher ight-related costs per ASM) Passenger-related cost effect of the Price-Recovery Component (i.e., higher costs due to higher costs per passenger) The Productivity Component of the Productivity Component (i.e., lower costs due to lower fuel usage per gallon)

24 Fuel (ASM) cost effect of the Productivity Component (i.e., lower costs due to higher passenger load factor) Passenger-related cost effect of the Productivity Component (i.e., lower costs due to higher miles per passenger) The Capacity Underutilization Component Changes in ight-related costs relating to unused capacities (i.e., higher unit costs to acquire capacity that is unused) Changes in ight-related costs of available capacities (i.e., lower underutilization due to decrease in available capacity) Changes in ight-related costs of used capacities (i.e., higher underutilization due to decrease in capacity used)

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