Institut Manajemen Telkom

Cordev 7

Continental Airlines Inc. --- 2007

Case FactTahun Penjelasan

1934 Didirikan oleh Walter Valney & Louis Mueller.Penerbangan Pertama dari El-Paso, Texas ke Pueblo dan Colorado

1937 – 1982 The Headquarters moved from El-Paso to Denver and then to Houston following a merger with Texas International

1983 Pertama kalinya Continental Bangkrut

1987 Maskapai Terbesar ke-3 di A.S berkonsolidasi dengan Frontier, People Express dan New York Air

1990 A second Chapter 11 was filed by Continental.

1993 It emerged from bankcruptcy and in July of the next year celebrated its 60th anniversary of service

2001, 2002, 2004, & 2005

Continental memiliki kerugian laba bersih

2006 Kembali memiliki keuntungan sebesar $346 million.

2005 – 2006 4 major competitors – Delta, Northwest, United and U.S Airways

Case Fact

Go Forward Plan

Fly to Win

Achive above-average profits in a changed industry environmentGrow the airline to where it can make money and keep improving the business/leisure mix.Maximize distribution channels while reducing distribution costs and eliminating non-value added costs.

Fund the Future

Manage company assets to maximize stakeholder value and built for the futureReduce costs with technologyGenerate positive cash flow and improve financial flexibility by increasing its cash balance.

Make Reliability a Reality

Deliver an industry-leading product the airline isproud to sellRank among the top of the industry in the key DOT measurements: on-time arrivals, baggage handling, complaints, and involuntary denied boardingsKeep improving the product

Working Together

Help well-trained employees build careers they enjoy every day. Treat each other with dignity and respect.Focus on safety, make employee programs easy to use, and keep improving communication.Keep pay and benefits competitive in a changed industry environment

Competitor & Market ShareAmerican;

15.4

United; 12.1

Southwest; 11.9

Delta; 11.2Continental; 7.7

Northwest; 7

U.S Airways; 4.7

JetBlue; 4

America West; 3.8

Alaska; 2.6

Other; 19.6

PROBLEM What strategy shoul Continental adopt to compete against the low-cost

carriers such as AirTran, JetBlue and Southwest? Can Continental realistically compete with these airlines on the basic of price?

How much of a threat are Delta, Northwest, U.S, AirWays and United and what should be Continental’s strategy to compete against these airlines?

Will the changes in Continental’s regional jet service affect the overall service offered by the airline?

Based on the service quality report by the Airline Quality Rating, what specific recomendations would you give Continental? In particular, address the criticisms about involuntary denied boardings (bumping)

Should Continental change its international strategy in any way? Are there destinations that it should add or remove?

How important are fuel costs and is Continental taking appropriate action to manage these costs now and in the future?

Evaluate Continental’s current use of the Internet in booking tickets. What should Continental’s actions be in light of the EU-US Open Skies

Treaty?

Q1Service Strategies:

1. Perhatikan trend konsumen

2. Ingat value proportionnya

3. Behavior konsumentingkat penerbangan tinggi, konsumen lebih melihat pelayanan

Teori Porter:

4. Cost Leadership

5. Differentiation

6. Focus dengan target Lower Upper

Q2 (Exhibit 13)

Two categories competitors:

1. Carries operating under bankrupcy protection: Delta Air Lines and Nortwest Airlines

2. Carrier that have emerged from bankrupcy: U.S Airways and United Arilines

Solusi: Membuat value creation (brand Faster and better)

Q3Ya, tentu akan mempengaruhi justru yang

menggapai “pasar yang kecil”

Regional Jet Service ini bisa memberikan cost advantages yaitu break-even load.

Regional Jet Sevice ini harus mengutamakan kenyamanan kepada konsumen karena mengangkut penumpang dengan jarak yang cukup jauh sehingga diberikan pelayanan tambahan

Q4

Menghadapi kritikan “bumping” dengan menerapkan bundling, yaitu konsumen bisa membeli tiket pada penerbangan selanjutnya dengan harga 50%, tetapi tidak untuk tiket yang promo

Q5

Kelemahan dari The Go Forward Plan adalah ketidakmampuannya dalam “melihat” isu-isu potensial yang berskala internasional salah satunya adalah Relationship dengan perusahaan-perusahaan pendukung seperti hotel ataupun travel-travel di beberapa negara. Jadi, yang harus ditambahkan adalah komitmen “Business To Business” dengan jenis-jenis bisnis yang sejenis.

Q6

Fuel Cost sangat penting karena:- Merupakan kebutuhan utama- Harga bahan bakar naik sejak tahun 2007

- Ya, perusahaan bisa melakukan strategi yang sama dilakukan dengan perusahaan lainnya, yaitu Hedging Strategies to control fuel costs

Q7Perusahaan sudah menerapkan internet dalam

proses booking, dengan manfaat:

1. Reduced the costs of tickets sales biaya administrative

2. Dengan e-ticket bisa menyerahkan pekerjaan “ticketing” kepada konsumen (bisa diprint di rumah)

3. Atau tinggal print saja di counter tiket di bandara

4. Lebih cepat

5. Menekan biaya counter tiket

6. Meningkatkan kepuasaan konsumen

Q8

Mendukung UE-US Open Skies Treaty karena ini merupakan peluang untuk dapat memperluas area penerbangan, menambah market size, jalur penerbangan potensial (seluas antara Amerika hingga Bandara Heatrow Inggris harus bisa Differentiation dibandingkan Delta, Continental dan U.S Airways)

Terima Kasih