Airline Industry Essay - 1242 Words

Today one of the world’s most competitive and prominent industries is the airlines industry. They generate huge amounts of income as well as employment. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc. According to the latest statistics given by the International Air Transport Association (IATA), the airline sector will post a profit of $9 billion in 2011. Business travel is increasing and even the airlines are now investing again. Political/Legal influences Over the years airlines have undergone large-scale privatization, as a significant portion of it used to be government-owned. Privatizing it has led to drastic increase in the number of air service providers†¦show more content†¦In United Kingdom when the government imposed high taxes on the aviation industry, the number of cargo operators reduced (My-Efficient-Planet, 2010). At the same place governments tend to support aviation industry by building airports, roads and hotels near airports. In addition governments tend to arrange security at the airport to ensure safe journey. The terrorist attacks of September 11, 2001 had negative implications for the industry. All the airlines changed their routes, marketing tactics and prices. They also tried to reduce the fear and negative image that got associated with airlines. Governments have imposed strict security checks on air travel passengers in order to avoid any unforeseen terrorist activity. Economic forces The growth of airline industry in any country is directly proportional to the GDP growth of that country. The demand of the aviation industry is based on the elasticity of demand and the current market condition. (InnovativeThinker, 2007) Fuel is one of the basic requirements for the airline industry to remain operational. Fuel price increases negatively influence airlines in multiple ways, firstly an increase in oil price raise the costs for companies; secondly it creates supply shock and reduced the GDP growth thus reduces the airline demand. Hiking fuel prices have increased the costs ofShow MoreRelatedAirline Industry : The Airlines Essay1637 Words   |  7 Pagespaper, I equally contemplated each industry while being forced to choose only one to focus on. I felt the most inclined to select the airlines industry, specifically Delta Airlines, since my father is a longtime employee for the company. I believe this assignment is an interesting and enthralling way for young people to begin to understand the complexity and importance that goes into analyzing an industry’s annual, quarterly and daily reports. The airlines industry has always been and will alwaysRead MoreThe Airlines And The Airline Industry800 Words   |  4 PagesThe airline industry has been around for years, it has suffered its ups and downs due to attacks such as the one that occurred in September 11, and even most recent as the Paris attack that occurred this past year. Major Airlines have suffered a decline in their profitability which has forced many airlines to file for bankruptcy. However, when bad times hit an industry some companies are forced to quit, while others are forced to change their strategy and continue moving forward. In the airline industryRead MoreAirline Industry1042 Words   |  5 Pagesbeen a key part of business and will continue to be. Technology increases productivity, efficiency, and in many times lowers the cost of making products. When looking to acquire another company one must compare the technology of that company to its industry. 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This industry is able to provide convenient transportation to people that wants to travel long distances. The airplane has been an invention that has improved the way people travel from one place to another. People has been able to experience traveling in a different way since the presence of airplanes. The airline industry has developed over time and is making it possible to travel to far places in a smallRead MoreSouthwest Airlines And The Airline Industry1640 Words   |  7 PagesSouthwest Airlines, a cost leader in the airline industry, was faced with an important decision on whether or not to enter LaGuardia Airport’s expensive, heavily regulated and congested market. How does a leader airline in discount airfare, continue to expand into high traffic markets without compromising its core strategies and disrupting its existing network? Founded in 1967, Southwest entered the airline industry at a time when interstate travel was heavily regulated by the Civil Aeronautics BoardRead MoreAirline Industry : Delta Airlines1599 Words   |  7 Pages Though Delta Airlines which is my choice of Airline does not operate solely as cargo carrier but as both passengers and Cargo carrier. Usually people ask where the difference between passengers and cargo carrier lies and the difference is simply the schedule and types of aircrafts used in each operation. For cargo only freighters there is no need for windows, seats and other comforts usually expected by customers. But operating a combined passenger/cargo aircraft, most basic requirementsRead MoreSouthwest Airlines And The Airline Industry946 Words   |  4 PagesExecutive Summary Southwest Airlines is a competitor in the airline industry who models themselves as a low fare company who cares about people. These two aspects are that backbone to their business. It is what sets them apart from their major competitors, such as Delta/Northwest, Continental/United, JetBlue, and Allegiant. Government regulation has allowed for more travel due to deregulation. This means there are more consumers than ever entering the industry. As more consumers enter the marketRead MoreAirline Industry : Southwest Airlines1925 Words   |  8 PagesSouthwest Airlines, founded in 1967, entered the airline industry at a time when the interstate travel was heavily regulated by the Civil Aeronautics Board (CAB).10 Some of those regulations are airlines were not allowed to discount fares even when their planes were at half capacity, airlines were not able to add new routes or remove old routes, and new carriers were not allowed to enter the interstate airline travel.10 Due to these regulations on the interstate market and seeing the success ofRead MoreAirline Industry : Southwest Airlines837 Words   |  4 Pagessuch as declining unemployment rates and rising income levels. Therefore, airline companies such as Southwest Airlines differentiate their brands from competitors by proactively creating value for customers. Since 2001, the airline industry has experienced greater costs due to the failing economy, volatile prices for fuel, and increased global competition. In order to combat these environmental factors, Southwest Airlines keeps airfare costs lower than those of competitors, focuses on fuel-efficient