This 8 page paper examines the history, market niche, and organizational structure of ValuJet Airlines-- a company best known for its low cost airfare and frequent problems / crashes ! Issues concerning service, management style, and fiscal outlook are analyzed to provide an in-depth overview of the company's strengths and weaknesses. Bibliography lists 10 sources.
Name of Research Paper File: D0_Valuejet.doc
Unformatted Sample Text from the Research Paper:
began customer service on October 26, 1993, with eight daily nonstop flights between Atlanta and three cities in Florida: Jacksonville, Orlando and Tampa. Its initial fleet consisted of
two DC-9-32 jet aircrafts. ValuJets service launch was met by immediate and aggressive fare matching by larger airlines already operating in ValuJets markets. Nevertheless, customer acceptance exceeded expectations,
and ValuJets expansion was rapid (Aronovich, 1996; ValuJet, 1996). From its initial operations, ValuJet has grown to operating 33 aircraft with daily service to a system
of 26 cities. Those cities are: Atlanta, Boston, Chicago, Columbus, Dallas/Ft. Worth, Detroit, Fort Lauderdale, Fort Myers, Hartford/Springfield, Indianapolis, Jackson, Jacksonville, Kansas City, Louisville, Memphis, Miami, Nashville, New
Orleans, Newport News/Norfolk, Orlando, Philadelphia, Raleigh/Durham, Savannah, Tampa, Washington, D.C., and West Palm Beach. In 1995, ValuJet made Washington, D.C.s Dulles International Airport its second focus city.
ValuJet operates nonstop service between Washington and Boston, Chicago, Fort Lauderdale, Miami, Orlando, Tampa, West Palm Beach, Hartford/Springfield, and Raleigh/Durham. On June 28, 1994, ValuJet went public, offering
1,500,000 shares of Common Stock at $12.50 per share. The Common Stock is quoted on the NASDAQ Stock Market and trades under the symbol VJET (ValuJet, 1996). ValuJet has
been able to make good on a long-standing promise to make flying cheaper than driving because its founders are four seasoned airline veterans who know a great deal about running
an airline. In the beginning, airlines issued tickets because the railroads issued tickets - and because paper was the only way to keep track of transactions. But when ValuJet
founders began to plan their new airline, the computer had made the airline ticket as obsolete as the passenger train. But no one in the industry realized that, except the