FINAL ASSIGNMENT

Topic: Alaska Airlines, “For the same price, you just get more…”

Teacher: Mr. Ngô Hà Quang Thịnh

Presented by Team Work:
Nguyễn Nhật Minh Tân- 2100011777
Tô Khánh Nhi - 2100009052
Khuất Hồng Trúc Vy – 2100011836

May 23, 2024

 Table of Contents

Introduction ..................................................................................................................................................... 3
Report ............................................................................................................................................................... 4
I) Company Background ........................................................................................................................ 4
II) What’s happened at Alaska Airlines from pre 1992 to 1995 ........................................................ 4
1. Alaska Airlines pre-1992 ................................................................................................................. 4
2. Alaska Airlines in 1992 .................................................................................................................... 6
3. Alaska Airlines from 1993-1995: Changes .................................................................................... 7
4. What can we learn? ......................................................................................................................... 8
III) About corporate ............................................................................................................................... 9
1. Alaska Airline’s Core Values .......................................................................................................... 9
2. Challenges ...................................................................................................................................... 10
3. Operational Strategy ..................................................................................................................... 12
4. Revenue .......................................................................................................................................... 13
IV) About Technologies ........................................................................................................................ 13
1. IMAGE Project .............................................................................................................................. 13
2. Self-service Check-in ..................................................................................................................... 14
3. Mileage Plan ................................................................................................................................... 16
4. [Link] ................................................................................................................................. 17
V) Airport of the Future Team .......................................................................................................... 18
1. About them ..................................................................................................................................... 18
2. Future Technological Initiatives ................................................................................................... 20
3. New technology development ....................................................................................................... 20
4. In-flight Technology....................................................................................................................... 22
VI) Customer Loyalty .......................................................................................................................... 24
VII) Competitors .................................................................................................................................... 25
1. Lufthansa........................................................................................................................................ 25
2. Southwest Airlines ......................................................................................................................... 28
3. Link with Vietnamese carriers ..................................................................................................... 29
Conclusion ...................................................................................................................................................... 31
Reference ........................................................................................................................................................ 33
 Introduction
Alaska Airlines, a prominent player in the North American aviation industry, has undergone
a remarkable transformation over the years. This comprehensive report delves into the key
events, strategies, and technological innovations that have shaped the airline's journey from
its humble beginnings to its current status as a leading carrier in the United States.

The report explores Alaska Airlines' evolution from the pre-1992 era, when it was known for
its exceptional customer service and community involvement, to the challenging period of the
early 1990s marked by intense competition and financial pressures. It then examines the
airline's strategic cost-cutting measures and operational changes implemented between 1993
and 1995, which laid the foundation for its subsequent success and growth.

Furthermore, the report delves into Alaska Airlines' core values, technological advancements,
and customer loyalty initiatives, providing valuable insights into the factors that have
contributed to its strong brand positioning and industry recognition. By analyzing the airline's
competitive landscape, including its rivalry with Lufthansa and Southwest Airlines, the report
offers a comprehensive understanding of Alaska Airlines' past, present, and future.

Throughout the report, the focus is on how Alaska Airlines has navigated through various
challenges, adapted its strategies, and embraced technological innovations to better serve its
customers and maintain its position as a highly-regarded airline in the North American
market. The insights gained from this in-depth analysis can serve as valuable lessons for
industry professionals, aspiring entrepreneurs, and anyone interested in the dynamics of the
aviation sector.
 Report
I) Company Background
Alaska Airlines was founded in 1932 under the name McGee Airways with a single-engine,
three-passenger plane. and later changed its name to Alaska Airlines in [Link] airline has
gone through several stages of development and expansion, especially in the 1990s when it
expanded its services to international destinations and acquired Horizon Air. This airline was
founded in September, 1981, in Seattle to serve communities using routes that larger airlines
had vacated after the Airline Deregulation Act of [Link] acquisitions, Horizon Air
expanded its route system from Washington throughout the Pacific Northwest. Horizon Air
provided air transportation to 39 destinations . Alaska Airlines and Horizon belonged to the
same holding company, Alaska Air Group.

Alaska Airlines has maintained a strong safety record, earning recognition for its commitment
to passenger safety and operational excellence.

Awards and Recognition: Alaska Airlines has received numerous awards for its customer
service, on-time performance, and overall quality. These include awards such as "Highest in
Customer Satisfaction Among Traditional Carriers in North America" by J.D. Power and
"Best Airline in North America" by Skytrax.

II) What’s happened at Alaska Airlines from pre 1992 to 1995

Alaska Airlines had a hard time from pre 1992 to 1995, but without this age Alaska
wouldn’t have that position in air traffic industry.

1. Alaska Airlines pre-1992

1.1 “Gold Coast” Promotion:
Beginning in the early 1970s, Alaska Airlines set a goal of being the best airline serving
Alaska. It served several markets—high and low density , long and short haul , business, and
pleasure. Its stated mission was to be the best airline serving Alaska and the West coast. From
the mid-1970s to the early 1990s, Alaska Airlines enjoyed the reputation of being the
“Mercedes of Airlines.” Examples of its high-end service included its providing almonds, not
peanuts, as in-flight snacks, and its famous “Gold Coast” promotion, which offered customers
flying to San Francisco gold ingots worth $50 each time they made the trip.

1.2 High Cost, high yield:

Despite having some of the highest costs in the industry,

Alaska Airlines achieved high yield (revenue per seat mile).

The airline stood out by offering amenities such as meals on every flight and maintaining a
generous number of flight attendants.

A typical Alaska Boeing 727 flight, designed for 136 passengers, was staffed with five flight
attendants—exceeding the FAA’s requirement of three.

The average load factor (percentage of passengers to seats) was 50 percent.

In the early 1970s, the average price of an Alaska Airlines ticket was around $550. (Adjusted
for inflation, this would be approximately $3200 in today’s currency)

1.3 Community Service and customer assistance:

Alaska Airlines was known for its commitment to community service. Customer service
agents went beyond their duties, with some calls lasting up to 45 minutes. Even during a
period when Alaska had limited destinations in the lower 48 states, agents assisted passengers
by arranging complex trips involving other airlines.

1.4 Three-month Strike:

During this period, IAM members, including mechanics, ramp workers, and other ground
staff, walked off the job in protest against the airline’s management and to demand better
working conditions, wages, and benefits.

Dispute: The strike was triggered by disagreements over issues such as wages, job security,
and working conditions.

Impact: The strike had significant consequences for Alaska Airlines operations, affecting
flight schedules, maintenance, and customer service.

Resolution: After three months of negotiations and picketing, the IAM and Alaska Airlines
reached an agreement, ending the strike. The agreement addressed some of the workers’
concerns, including wage increases and job security.

2. Alaska Airlines in 1992

In the early 1990s, the U.S. airline industry faced economic challenges due to a recession and
increased competition from low-cost carriers.

During this period, airlines were vying for passengers by offering competitive fares and
promotions to fill seats and boost revenue.

By offering lower fares, Alaska Airlines hoped to attract more passengers and increase its
market share. However, fare wars can be financially risky for airlines as they often result in
decreased profitability.

Root Causes:

+ Intense Competition: Airlines were battling for market share, leading to aggressive
pricing strategies.
 + Economic Pressures: The recession prompted airlines to seek ways to attract
passengers and generate revenue.

+ Promotional Campaigns: Southwest Airlines, in particular, launched its “Friends Fly

Free” campaign, offering two tickets for the price of one unrestricted fare.

Impact:

+ Southwest Airlines’ aggressive entry into the Oakland to Burbank market in 1990
accelerated Alaska’s exit from the market in 1992.

+ Alaska Airlines lost $85 million. Collectively, U.S. airlines lost approximately $3
billion that year. Industry observers noted that between 1988 and 1992, losses at the
major U.S. airlines were greater than accumulated profits since the beginning of U.S.
commercial aviation.

3. Alaska Airlines from 1993-1995: Changes

3.1 1993: Cost reduction program

In 1993, CEO Ray Vecci implemented a comprehensive cost reduction program, which
resulted in more than $80 million in annual cost savings.

Discontinued routes where profit or profit potential was marginal to service new, more
profitable routes, such as service from Seattle to Reno, Las Vegas, Sacramento, and Palm
Springs.

Accelerated the phase-out of B727s, replacing them with B737-400s, which were 40 percent
more fuel efficient.
Streamlined management layers: 100 managers out of 1,078 were let go.

Stopped serving meals on every flight: Alaska stopped serving meals on every flight.
Although the airline now served meals only on flights that lasted over one hour and 20 minutes
during customary mealtimes, care was taken to maintain the high quality of the food.

Reduced the number of flight attendants per flight to FAA minimum requirements.

Reservation agents reduced their phone time with customers to an average of three minutes.

3.2 1993: Increase the utilization

Alaska Airlines took several steps to increase the utilization of its airplanes.:

• More seats were added to several aircraft.

• Changing ground handling procedures
• Catering was changed; drinks for two or three flights would be loaded at one stop. This
saved ground time on flights where food did not have to be loaded.

=> These initiatives increased airplane utilization from 8.2 hours per airplane per day
to 10.3 hours per airplane per day. This effectively increased the airline’s flight capacity
by 22 airplanes. In 1993, Alaska had a total airline fleet of 75 airplanes.

Result:

Increased utilization allowed Alaska to expand its flight offerings. For instance, in 1994 Alaska and
Horizonoffered 104 nonstop round trips daily between the Pacific Northwest and California,
compared with 64 at the end of 1993.

That gave them 75 percent of the nonstop flights to southern California and 50 percent of the nonstops
to Northern California.

By December 1994, Alaska Airlines regained its profitability.

4. What can we learn?

As we can see, the biggest problem of Alaska Airlines is spending too much time and money
on services, amenities and branding, but they didn’t note how labors effected and what will
happen when this problem can’t be solved. However, they quickly comeback by recognized
the problem and implemented many programs to solve, they’re willing to reduce or even
replace, remove when it’s not efficient for corporator. So, they grew slower and more
conservative instead of at very rapid pace of competitors like other carriers.

Human factors are always the problem. Alaska Airlines didn’t scare to remove or replace the
position when predecessor didn’t match the satisfactions and that how they solved the
problems.

In additional, Alaska Airlines know who they are and whom they serve very well and they
can change the old things or learning new technologies, they don’t scare to be on the front-
line. As result, they got reputation they deserved.

III) About corporate

1. Alaska Airline’s Core Values
1.1 Alaska Spirit
The heart of Alaska Airlines, springs from the rich heritage as a pioneer in a state where
aviation plays a vital role.
Defines the unique character of Alaska Airlines.
Represents fun-loving, energetic, and adventurous personality.
Drives pride, passion, and perseverance.
1.2 Resourcefulness

Embraces an atmosphere of hard work, initiative, and teamwork.

Demonstrates the “CAN DO” heritage of Alaska Airlines.

Flourishes in an environment where creativity and innovation thrive.

1.3 Professionalism

High level of individual skill, expertise, and commitment to work.

Pride in individual and collective accomplishments.

Reputation for safe, reliable, quality service.

 1.4 Caring

Soul of Alaska Airlines.

Regularly goes the extra mile to help customers, community, and each other.

Demonstrates friendliness, caring, and genuine concern.

Believes in individual acts of kindness and compassion.

2. Challenges
2.1 “Chokepoint”
The Alaska terminal at the Seattle airport was known to have “chokepoints” on its baggage
conveyer belt.

Solve:

To alleviate this issue, the airport could consider upgrading or expanding its baggage handling
system. Modern conveyor systems designed for airports integrate well with other handling
equipment, ensuring efficient baggage flow. Companies like Cassioli offer reliable, silent,
and easy-to-maintain conveyor belts specifically tailored for airport use.

2.2 Contracts
Baggage handlers were negotiating their union contract with management.

Union Demands:

Wage Increase: Baggage handlers sought higher wages.

Subcontracting: They wanted the airline to stop using subcontractors in cities without union
representation.

Management’s Position:

Pay Increases: The airline was willing to provide pay raises.

Subcontracting Agreement: However, an agreement on subcontracting had not been reached.

Recommendation: Both parties should continue negotiations in good faith to find common
ground and address the concerns raised.
=> In summary, resolving the baggage conveyor issues and reaching a fair union
contract are crucial for smooth airport operations and employee satisfaction.

2.3 Passenger growth

Between1992 and 1998, the number of passengers served by Alaska Airlines increased from
8.6 to 13 million. In 1999, Alaska Airlines projected its passenger traffic to increase by 6
percent each year for the next 10 years. The FAA expected the number of U.S. air travelers to
reach 924 million a year in 2009, up from 616 million in [Link] 1992, approximately six
gates (net) had been added throughout the Alaska Airlines system.

Resolution:

Network Expansion:

• Airlines can expand their route networks by adding new destinations or increasing
flight frequencies to existing ones.
• Exploring underserved markets and identifying high-demand routes can help capture
additional passengers.

Strategic Pricing:

• Dynamic pricing models can help airlines adjust fares based on demand, time of
booking, and other factors.
• Implementing personalized pricing strategies can attract more passengers while
maximizing revenue.

Infrastructure Investment:

• Investing in airport infrastructure (terminals, runways, gates) is essential to handle

increased passenger volumes.
• Collaborating with airports and regulatory bodies to plan for future growth is crucial.

Efficient Airport Operations:

• Streamlining airport processes (check-in, security, boarding) can improve passenger

flow and reduce waiting times.
 • Leveraging technology (such as self-service kiosks and mobile apps) can enhance
efficiency and passenger satisfaction.

3. Operational Strategy
Members of Alaska's leadership team will outline the competitive advantages that underpin
the company's industry-leading performance and strategic growth plan:

Adding depth to our expansive network: Alaska plans to grow an average of 4-8% per year
through 2025, in part by investing in the depth of its network. Alaska's 1,200 flights per day
take our guests to 120 destinations across North and Central America, including nonstop
flights to transcontinental business routes and four Hawaiian Islands.

Operating a single, more efficient fleet: Today, the company will share plans to accelerate
the transition of its fleet of 300+ aircraft to all-Boeing 737 for its mainline operations and all-
Embraer E175 jets for regional, by the end of 2023. Consistent with Alaska's low-cost high
productivity mindset, these transitions are expected to drive significant economic benefits. As
the fleet grows to 400 aircraft by mid-decade, these will manifest through operational
simplicity, flexibility and scalability, better fuel efficiency and reduced maintenance costs.
The company is also growing cargo business operations by converting two passenger 737-
800s to freighters, bringing the total freighter fleet to five.

Delivering best-in-class care: Care is the foundation of Alaska's culture, fueled by its people
and reflected in everything they do. It has earned the airline high guest satisfaction and long-
term loyalty. The company will continue to invest in developing its people through its
Pathways program, which cultivates talent from regional to mainline operations. In addition,
it is developing the next generation of pilots and training existing employees for new jobs
through its Ascend Pilot Academy.

Growing Alaska's award-winning loyalty program with a renewed co-branded

partnership: Alaska and Bank of America today announced an extension of their co-branded
credit card agreement through 2030. This agreement will enhance benefits for guests and
drive improved profitability for the airline. Alaska's Mileage Plan™ is the industry's most
generous loyalty rewards program, with miles earned based on flight distance rather than
dollars spent and ability to earn and redeem to over 1,000 global destinations as part
of oneworld Alliance.
 4. Revenue
Alaska Air annual/quarterly revenue history and growth rate from 2010 to 2024. Revenue can
be defined as the amount of money a company receives from its customers in exchange for
the sales of goods or services. Revenue is the top line item on an income statement from which
all costs and expenses are subtracted to arrive at net income.
• Alaska Air revenue for the quarter ending March 31, 2024 was $2.232B, a 1.64%
increase year-over-year.
• Alaska Air revenue for the twelve months ending March 31, 2024 was $10.462B,
a 2.96% increase year-over-year.
• Alaska Air annual revenue for 2023 was $10.426B, a 8.09% increase from 2022.
• Alaska Air annual revenue for 2022 was $9.646B, a 56.19% increase from 2021.
• Alaska Air annual revenue for 2021 was $6.176B, a 73.19% increase from 2020.

IV) About Technologies

1. IMAGE Project
In 1994, Alaska Airlines’ engineers designed a software program called IMAGE (Interface
Management and Graphical Environment) as a tool to help employees provide good customer
service. IMAGE was developed to create an interface between the SABRE system and
customer service agents.

The IMAGE project provided agents with a user-friendly windows-like system. Prior to the
implementation of IMAGE, agent training consisted of four weeks of technical sessions.
Now, twoweeks were spent on technology, and two on customer service.

IMAGE allowed the airline to focus on hiring people such as department store clerks,
teachers, secretaries, etc., with customer service orientation. Very few agents were hired
from other airlines.

“We developed our own software so that we would not be dependent on other companies to
support it. We don’t sell because we don’t have the resources to support another company’s
system—for example, to develop upgrades for them.”- A manager commented
 1.1 SABRE system

Alaska Airlines renewed and expanded its agreement with Sabre to include the Sabre Sonic
PSS. Sabre Sonic automates sales and service, maximizing revenue opportunities and creating
efficient airport experiences for travelers.

Alaska Airlines continued to leverage Sabre’s Intelligence Exchange, optimizing passenger

experience and operations. This system provides real-time insights to inform business
decisions. The extended technology partnership with Sabre supports Alaska Airlines in
driving revenue, enhancing productivity, and maintaining award-winning service.

2. Self-service Check-in
How it works ?

First: Make your reservation in 3 ways:

- Request Instant Travel from your travel agent

- Call Alaska Airlines hotline and ask for Instant Travel
- Book Instant Travel on Alaska Airlines’s website ([Link], [Link])

Then: Give them your number

With your IT confirmation code and photo identification, it’s easy to check in with any of
these convenient methods. (If you don’t have your code, a customer sevice agent will assist
you with check-in).

- Check your bag at ticket counter and receive your boarding pass.
- If there’s no bags, proceed directly to your departure gate and pick up your boarding
pass there.
 - For maximum convenience, use one of our self-service airport check-in kiosks.

 Kiosks reduce a lot of waiting time in line for customer, you can see this figure:

Self-Service Baggage Check-In Storyboard

• Bag tags and boarding passes were printed by the ITM, customers attached bag tags to
their luggage themselves.
• Tagging their bags, customers placed their luggage on a conveyer belt, and a new FAA
approved X-ray device would scan their luggage.
• This $1 million X-ray machine was supplied to Alaska Airlines by the FAA. Alaska
was only financially responsible for the maintenance of the machine, which cost
 approximately $100,000 per year. The cost to purchase the machine was expected to
decline by at least 50% within a year as more were produced.

The airline influenced the number of passengers using self-check-in by offering

customers mileage rewards:

• 1,000 miles every time they went through the entire self-service process
• Booked a ticket on the web—250 miles
• Used an electronic ticket-- 250 miles
• Used an ITM-- 500 miles.

This so efficient for Alaska Airlines:

3. Mileage Plan
Use your miles for seat upgrades, book hotel stays, and fly with Alaska Airlines and its one
world Alliance member airlines to more than 900 destinations globally.

Award travel starts at just 5,000 miles, allowing you to check off more trips on your bucket
list.

You can also book stays at over 400,000 locations and upgrade to First Class.

Elite Status (MVP):

• No minimum spending requirements: Earn miles faster.

• Two free checked bags, priority boarding, and preferred seating.
• Enjoy these perks when flying with Alaska Airlines
Global Partnerships:

• Earn and use Mileage Plan miles while traveling to over 1,000 destinations worldwide
through Alaska Airlines, its one world Alliance, and Global Partners.
• Create customized itineraries with round-the-world service and round-the-clock
options.

4. [Link]

In 1995, Alaska Airlines was the first airline to book and sell tickets over the Internet. In
addition to ticket purchases. [Link] allowed customers to review their mileage
plan activity and check the status of departing and arriving flights. Soon, it would also
allow them to book flights on mileage partner airlines and request and self-confirm first
class upgrades.

Mike Schneider, Director of [Link] planned to move 50 percent of ticketing to the

Internet by 2003. His future plans for the web-site included: on-line check-in, on-line
“mileage plan” enrollment, a “Corporate Kitty” miles program, and a “Miles to Money”
campaign.
 V) Airport of the Future Team
1. About them
In late 1995, Kelly developed the Future team to formalize Alaska’s technology development
process. To accelerate the use of technology in order to speed the airport process. Kelly
assembled a team of fourteen people from various departments, to develop initiatives that
would achieve this objective. Develop a model of what travel on Alaska Airlines might be
like in the near future and how it might be different from – and better than – travel on other
carriers.

The Airport of the Future team met every Friday for two hours. One of the first actions the
team took was to visit various companies outside of their industry to benchmark how they
used technology to enhance customer service.(Hospital emergency room, designers of
Nintendo games,...). After these visits, the team used a three-step process to identify areas of
improvement:

• What can we eliminate?

• What can we simplify?
• What can be automated?

The team consisted of four committees:

1.1 Kiosks
Kiosks Expansion Plans:

• Alaska Airlines focused on expanding self-check baggage kiosks.

• The expansion was planned for Seattle and Portland airports by the end of the fourth
quarter of 1999.
• Kiosks were also intended to be placed in more airport parking garages and hotels
within a one-mile radius of the airport.

Reason for the One-Mile Radius:

 • The group believed that passengers should not be too far away after checking in.
• If a passenger didn’t show up for their flight after checking in, the airline might hold
the seat for a stand-by passenger.

1.2 Pre check-in

• Finding ways for passengers to check in from their home or office.
• Ideas included web check-in and phone check-in.
• Modify the existing voice response unit (VRU) to allow telephone check-in for
passengers without bags.
• Developing web check-in.

1.3 Smart card

Purpose:

To speed up the airport process using smart cards or proximity cards.

Conveyed the passenger’s identity to kiosks or agents.

How it works:
Alaska’s computer system’s antenna sensed the signal from the smart card.

The system verified the passenger’s seat assignment.

The passenger would be greeted by name, and their reservation would appear on the computer
screen.

Privacy and Implementation:

Alaska was addressing privacy concerns related to lost or stolen cards.

The airline was experimenting with smart cards at its Boise, Idaho terminal.

2. Future Technological Initiatives

2.1 Identification Process
The Airport of the Future team considered two options: picture IDs or thumbprints.

Picture IDs involved scanning a Thumbprints were proposed as an

passenger’s driver’s license into Alaska’s alternative to address changing
computer system. representations over time.

Some customers were uncomfortable with Alaska could store passengers’ thumbprints
license scanning due to privacy concerns and verify identity using a scanner at the
(social security numbers). gate.

=> Rejected => Accepted

2.2 Airport Infrastructure Alterations

Architects designed a new Alaska terminal (to open in 2002 at Anchorage International
Airport).The terminal would eliminate traditional ticket [Link], it would have
check-in “islands” for human assistance with complex questions or transactions. Management
envisioned self-service options, roving agents, clear signs, and efficient gate information.
Animated videos were planned to visualize the proposed building before final commitment.

3. New technology development

Bill Heppner, Director of Project Management and Systems Integration, was responsible for
the design of new technological initiatives. His group consisted of two applications
developers, two hardware technicians, and two design coordinators. Here’s New Technology
Development Process at Alaska Airlines.
 3.1 Hand-held Scanners
To eliminating the manual task of inputting bar codes from the
bag tags on lost luggage into the IMAGE system.

Previous system information on lost luggage went into the

system when someone had time to input it, which could be
hours after the bags arrived and could take hours to complete.

The scanners thus reduced labor effort, got information to

customers about where their lost luggage was faster, and got
lost bags re-routed sooner.

3.2 Personal Palm Pilots

This information included details like on-time departure status, seat assignment, and gate
information from [Link]. However, a specific date for integrating palm pilots had not
been determined yet.
 3.3 Hand-held Wireless Terminals
Hand-held wireless terminals (compact portable computers) were used by customer service
agents. These terminals allowed agents to issue boarding passes to passengers standing in
ticket lines or approaching the terminal. However, customer service agents found the
equipment too heavy, and long passenger lines developed behind them, defeating the purpose
of portability.

 Further development of this technology was discontinued.

3.4 Flight Monitors

Flight monitors provided gate information for departing and arriving flights. Unfortunately,
the information was entered manually by flight operations and not always updated promptly.
Integrating several independent systems was necessary to transfer data more quickly to the
flight monitors.

Heppner’s group was actively working on a solution to improve the timely updating of
flight information.

4. In-flight Technology
4.1 “Heads-up guidance systems”
In late 1989, Alaska Airlines became the first airline to use “heads-up guidance systems”
during passenger flights to reduce disruptions caused by fog. HGS (Head-Up Guidance
System) is a technology that provides critical flight information directly to the pilot’s field of
view. It uses a wide field-of-view Head-Up Display (HUD) to project essential data onto a
transparent screen in front of the pilot.

Benefits:

• Reduce disruption cause by fog: San Francisco’s second runway operational with fog
levels as low as 1,000 feet and visibility of just three miles, substantially reducing
passenger inconvenience due to weather without compromising safety.
• In modern jet aircraft (especially those with glass cockpits), HGS might have
prevented or positively influenced 38% of accidents overall.
• For accidents directly involving the pilot (e.g., takeoff and landing, loss of control),
the likelihood of accident prevention due to HGS safety properties becomes even
greater (up to 69% and 57%, respectively).

4.2 GPS (Global Positioning System)

The GPS system relies on a network of 31+ satellites orbiting Earth. These satellites transmit
radio signals from medium Earth orbit.

In aircraft:

• An onboard GPS receiver connects to multiple satellites.

• The receiver measures the signals to determine:
➢ Latitude: North-South position.
 ➢ Longitude: East-West position.
➢ Altitude: Height above sea level.

By calculating the time it takes for signals to travel from satellites to the receiver, the GPS
system determines the distance from each satellite.

• GPS provides precise position; GPS receivers can pinpoint an aircraft’s location within
a few meters.

=> This accuracy allows for precise navigation during flight.

• Beyond position, GPS provides other navigational data:

o Speed
o Direction
o Distance to waypoints
o Time of arrival

=> Pilots can enter and store waypoints (locations) in the GPS unit’s memory.

VI) Customer Loyalty

The Director of Business Travel Marketing was developing a customer loyalty program
that focused on delivering information to the field. Three individual customer loyalty
initiatives were being developed:

Profiles—these identified customer preferences. In addition, any previous travel

problems the customer experienced were documented.

Valuation Algorithm—this documented travel frequency, class of tickets purchased

(including various fare levels in coach), and whether the customer was a shipper
or a passenger.

Database Marketing—After identifying the customer’s needs and perceived value,

one on one marketing tools were to be developed. Alaska planned to distribute special
promotions to its customers via direct mail, email, or the Internet.

Mileage plan—Alaska’s established customer loyalty initiative. Required fewer miles to

obtain a free or discounted ticket compared to other airlines. Identified “Gold” members
(those who had flown 45,000 miles or 60 flight segments on Alaska, Horizon, KLM, or
Northwest Airlines).Gold members received additional benefits, including bonus miles, first-
class upgrades, and board room membership. The airline maintained a policy of
accommodating reasonable requests from Gold members. Regular lunches were held with
Gold members for customer feedback.

Elite status convenience—Business travelers often seek convenience from elite status rather
than [Link] rewards programs to provide basics such as priority boarding, upgrades,
extra legroom seats, rebooking priority.

VII) Competitors
1. Lufthansa
Alaska Airlines was not the only airline carrier that had chosen innovative ways to speed the
airport process. Lufthansa was also advanced in adopting self-service technology and
offered other services to passengers to expedite check-in.
 1.1 Technologies
Same:

Both Alaska Airlines and Lufthansa aim for user-friendly interfaces. Their machines likely
feature touchscreens for interaction. The design might vary, reflecting each airline's branding
and style.

Both machines allow passengers to check-in for flights, print boarding passes, select seats (if
available), and possibly check baggage. They may also offer options for upgrading seats or
adding special services.

Alaska Airlines and Lufthansa may customize their check-in machines based on customer
feedback and evolving industry standards, so the features and interface may change over time.

Both airlines are likely to have accessibility features on their machines, such as larger fonts,
audio instructions, and options for passengers with disabilities.

Difference:

Lufthansa might have more integration with its broader network, including codeshare flights
and partner airlines. Alaska Airlines' machine might primarily focus on its own flights and
partner airlines within its network.

Lufthansa, being a major international carrier, likely offers multiple language options on its
machines, catering to a diverse passenger base. Alaska Airlines might have language options
as well, but perhaps not as extensive.

Lufthansa's machines might offer additional services such as printing baggage tags or
providing information about airport amenities, connecting flights, and destination weather.
Alaska Airlines' machines likely provide similar services but tailored to their route network
and passenger needs.

While both airlines likely use modern technology for their machines, Lufthansa, being a larger
international carrier, might incorporate more advanced features such as biometric scanning
for check-in or passport verification.

1.2 Corporator Culture

Alaska Airlines:
The board of directors of Alaska Airlines is composed of individuals with diverse
backgrounds and expertise, overseeing major decisions and providing guidance to the
executive team.

Alaska Airlines has a reputation for its strong corporate culture, often emphasizing employee
satisfaction and customer service. The airline has received recognition for its workplace
environment and community involvement.

Lufthansa:

Lufthansa's Executive Board consists of top executives responsible for various aspects of the
business, such as finance, operations, and marketing.

Being a larger, international airline, Lufthansa operates under a complex corporate

governance structure, adhering to regulations and standards set forth by various jurisdictions
where it operates.

Lufthansa Alaska Airlines

Lufthansa is one of the largest airlines in the Alaska Airlines, while a major player in the
world, operating globally and offering a U.S. market, has a smaller operational
wide range of services beyond passenger footprint compared to Lufthansa.
flights, including cargo and maintenance
services.
Lufthansa competes on a global scale with Alaska Airlines primarily focuses on the
other major carriers North American market, particularly the
West Coast of the United States.
Both airlines likely have corporate social responsibility initiatives, but the focus and scale
may differ. Lufthansa, being a larger corporation, might have more extensive CSR programs
covering various aspects such as environmental sustainability and community engagement.

1.3 Other check-in option

Lufthansa's Moonlight Check-in service offers passengers the convenience of checking in for
their flights and dropping off their baggage the night before their departure, typically at select
airport locations. This service is particularly beneficial for travelers who want to save time
and avoid long queues on the day of their flight.
 1.4 Check-in process:
Passengers can approach the Moonlight Check-in counters and complete the check-in process
with the assistance of Lufthansa staff. This includes providing travel documents, receiving
boarding passes, and selecting seats if necessary. The check-in process typically follows the
same procedures as traditional airport check-in.

Baggage Drop-off:

After completing the check-in process, passengers can drop off their checked baggage at the
Moonlight Check-in counters. Lufthansa staff will tag the bags and ensure they are properly
checked in for the flight. This allows passengers to avoid carrying their luggage to the airport
on the day of departure.

Benefit:

The Moonlight Check-in service offers several benefits to passengers, including time savings,
reduced stress, and the convenience of starting their journey with peace of mind. By
completing the check-in process and dropping off their bags in advance, travelers can
streamline their airport experience and avoid potential rush hours on the day of their flight.

 It's important to note that Moonlight Check-in may not be available at all airports
or for all Lufthansa flights. The service is typically offered at select locations
where Lufthansa operates, and availability may vary depending on factors such
as airport facilities and flight schedules.

2. Southwest Airlines
Alaska Airlines Southwest Airlines
Route Network Alaska Airlines primarily Southwest Airlines, on the
serves the West Coast, other hand, has a larger
Alaska, Hawaii, and some domestic network that
destinations in the Midwest, covers most of the United
East Coast, and Canada. States, including major cities
and smaller regional airports.
Fleet Alaska Airlines operates a Southwest Airlines operates
mixed fleet of Boeing an all-Boeing 737 fleet,
aircraft, including 737s, 737
 MAX, and Airbus A320 which helps streamline
family aircraft. maintenance and operations.
Fare Stucture Alaska Airlines offers a more Southwest is known for its
traditional fare structure with no-frills, low-cost approach.
different fare classes and They don't charge for
options for upgrades, though checked bags (up to a certain
they also have their own limit), and they have a
perks like the Alaska simpler fare structure with
Airlines Mileage Plan. no assigned seating.
Custumer Services Both airlines have generally positive reputations for
customer service, but Alaska Airlines is often praised for its
friendly and helpful staff. They also have partnerships with
several international airlines, expanding their reach globally.
Market Position Alaska Airlines tends to Southwest Airlines, while
cater more to business also serving business
travelers and offers more travelers, focuses more on
premium amenities like leisure travelers and offers a
lounges and first class more standardized
cabins. experience across all flights.

3. Link with Vietnamese carriers

Vietnamese carriers like Vietnam Airlines and VietJet Air may share some operational
similarities with Alaska Airlines, particularly in terms of their focus on customer service,
operational efficiency, and route networks.

Alaska Airlines is known for its emphasis on customer service, often ranking highly in
customer satisfaction surveys. Similarly, Vietnam Airlines places importance on providing a
positive passenger experience, with a focus on hospitality and comfort.

Alaska Airlines has a strong presence on the West Coast of the United States, with extensive
connections to destinations in Alaska, Hawaii, and the continental U.S. Vietnam Airlines also
has a comprehensive route network, connecting Vietnam with major cities in Asia, Europe,
and Australia. VietJet Air, while primarily a low-cost carrier, has been expanding its network
across Asia and beyond, similar to Alaska's expansion beyond its traditional routes.

Both Alaska Airlines and Vietnamese carriers strive for operational efficiency to reduce costs
and improve service reliability. This includes measures such as fleet optimization, route
planning, and on-time performance.

While Alaska Airlines is a full-service carrier with a focus on quality service, Vietnam Airlines
operates as the flag carrier of Vietnam, catering to both domestic and international travelers.
VietJet Air, on the other hand, positions itself as a low-cost carrier, targeting budget-conscious
travelers.

Alaska Airlines has partnerships with several international airlines, allowing for code-sharing
and reciprocal benefits for passengers. Vietnam Airlines has similar partnerships with other
airlines in the SkyTeam alliance, facilitating seamless connections for travelers.

 Vietnamese carriers can learn from the operational strategies of successful airlines like
Alaska Airlines to improve various aspects of their operations like: Customer Service
Excellence, develop a strategic route network that caters to both domestic and
international markets, leverage technology to enhance various aspects of operations,
including reservation systems, passenger communication, and aircraft maintenance or
invest in training and development programs to empower employees and foster a
culture of excellence and innovation.
 Conclusion
Alaska Airlines' remarkable journey from its humble beginnings as McGee Airways in 1932
to its current status as a leading airline in North America is a testament to the power of
resilience, innovation, and a relentless pursuit of excellence. This comprehensive report has
delved into the key events, strategic decisions, and technological advancements that have
shaped the airline's evolution over the decades, providing valuable insights into the factors
that have contributed to its sustained success.

At the heart of Alaska Airlines' story lies its unwavering commitment to its core values, which
have guided the company through both prosperous times and challenging periods. The
airline's focus on safety, customer satisfaction, and operational efficiency has been a constant
driving force, enabling it to navigate through intense competition, financial pressures, and
industry-wide disruptions.

One of the most striking aspects of Alaska Airlines' journey is its ability to adapt and innovate.
The strategic cost-cutting measures and operational changes implemented between 1993 and
1995, as highlighted in this report, exemplify the airline's resilience and foresight. By
embracing technological advancements, such as the IMAGE project, self-service check-in,
and the development of the [Link] website, Alaska Airlines has consistently stayed
ahead of the curve, enhancing the customer experience and optimizing its operations.

The report's analysis of Alaska Airlines' competitive landscape, including its rivalry with
industry giants like Lufthansa and Southwest Airlines, underscores the airline's ability to
differentiate itself through its unique service offerings, brand positioning, and customer
loyalty initiatives. The establishment of the Airport of the Future Team and the continuous
development of in-flight technologies further demonstrate Alaska Airlines' commitment to
anticipating and meeting the evolving needs of its passengers.

As Alaska Airlines looks towards the future, this report serves as a valuable resource,
highlighting the key lessons and strategies that have contributed to the airline's success. The
insights gained can inspire industry professionals, aspiring entrepreneurs, and aviation
enthusiasts alike, providing a roadmap for navigating the complexities of the industry and
achieving long-term sustainable growth.
In conclusion, Alaska Airlines' remarkable journey is a testament to the power of adaptability,
innovation, and a steadfast dedication to customer-centric values. As the airline continues to
shape the future of the aviation industry, this comprehensive report stands as a testament to
the company's resilience, foresight, and unwavering commitment to excellence.
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