Key success Factors for the US Airline industry

Key success Factors for the US Airline industry

Key success factors They describe main parts of performance that are important for the firm to achieve its objectives and mission. In the US Airline industry the key success factors are : • Route System • Load factor • Cost Structure • Non-Stop Flights • Personnel • Strong Management • Voice of the Customer

Beyond price, passengers choosing an airline focused on safety, reliability, and convenience, with other factors such as service quality, entertainment, and food also influencing the purchase decision.

Route System An airline’s route organization is the most reliable factor. Where to fly and how frequently. This factor must be harmonized and simultaneously planned to increase the aircraft utilization.

Load factor Major airlines had to develop a system that would ensure high load factors. After 1978, most of the major airlines shifted operations to a hub-andspoke model: flights on small planes from lightly traveled cities, or “spokes” would feed passengers into “hubs” in major cities and route them on to their eventual destinations.

Cost Structure With the commoditization of air travel, cost structure is now a key success factor in the industry. Effective management of fuel, maintenance, and labor costs is mandatory in the current environment of competition.

Non-Stop Flights Destination from one point to another point should be nonstop. This activity minimizes the time that planes take while reaching the destination. It results in a good image and increases passengers credibility.

Personnel Highly qualified and competence workforce is very essential in this industry. They must possess strong communication skills and speak softly with the customers. There should be training programs focusing on enhancing their abilities and skills, and these programs must be customeroriented.

Strong Management There must be strong management of everything that is advantageous for the organization. They have to, at all times, avoid everything that may increase costs and makes difficulties for the travel plan.

Voice of the Customers do not really recognize differentiation in air travel and are price sensitive. A determined focus on the features and benefits that are valuable to the customer today is a key success factor in the industry.

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