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Aviation Industry - Essay Example

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Aviation Industry

His efforts in transforming this air carrier gained him the recognition of having been successful in influencing the pre-deregulation airline industry. However, most people are still skeptical on his contributions claiming that his strategy becomes detrimental to Continental and brought damages in its operation.
In managing the airline, Lorenzo used a highly centralized decision making approach. It should be noted that he solely the airline is solely run by Lorenzo and even though he assigns executives to oversee the different functional areas, he often bypassed them and implement his own decisions. His administration also emphasizes the goal of profitability by cutting down operational costs. This move had jeopardized employee morale and commitment leading to massive labor union strikes. Lorenzo should also be noted by introducing new practices in the pre-deregulation aviation industry. He has been apt in targeting the middle and lower social strata by revamping the typical marketing strategy. Lorenzo introduced "Peanuts Fares" which is the first CAB-approved low fare scheme, provided consumer benefits like forbidding pipe and cigarette smoking in planes, and utilized the advancement of technology through computerized airport check-in.
After beingAfter being forced to leave the Continental Airways in 1990, Gordon Bethune took over. The new executive has been recognized to have brought the major turnaround in the airline. From being financially distressed, Continental Airways had become one of the most admired business organizations. In direct contrast with Lorenzo, Bethune implemented a decentralized management style which empowers employees to make significant decisions. He improved employee morale by treating them as strategic partners which are instrumental in attaining organizational goals. He also recognized employee contribution by rewarding them. His move for profitability is seen by eliminating unprofitable routes and outsourcing maintenance which helps the airline to focus on its core competence.
2. Early aviation got its start with those men in their crazy balloons. Describe in detail the beginning of balloon age, its uses, and the impact it had on aviation today. (10 points)
The first successful human flight in history occurred aboard a hot air balloon it took place in France, 1783. Jean de Rozier and Francois d' Arlandes flew 5 miles in a hot air balloon which was invented by Monthgolfier brothers, they were inspired by the lifting power of hot air rising from a fireplace. The first hot air balloon was powered by a wood fire; it was not steerable; and flew wherever the wind took it. The first recorded circumnavigation of the globe in a balloon was accomplished by Betrand Piccard and Brian Jones, it took them 19 days and flew over 26,000 miles. The first successful solo-flight around the world was achieved by Steve Fossett after six attempts.
Initially, hot air balloons are solely used for showmanship. The succeeding years proved that hot air balloons can be utilized for military purposes. It should be noted that hot air balloons are used during the French Revolution and American civil war. In order to maximize its uses, the military brought structural changes like ...Show more

Summary

1. Gordon Bethune and Frank Lorenzo were two of the more noted CEOs in the last 25 years of commercial aviation. Describe in-depth their management style and how they used their management style in running the airline they were associated with. Please name the airline(s) and if their management style had any long-term effects on the industry…
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