This website uses cookies to ensure you have the best experience. Learn more

International Airline Industry Essay

1590 words - 6 pages

International Airline industry, airline business has grown as companies increasingly are turning to international in terms of their investments, their supply and production chains and their customers. As world is being term as global village, the rapid growth of world trade in goods and services and international direct investment have also added in the expansion of business travel. One thing that really impressed me about Airline Industry was their ability to maintain high profits and maintain a high customer base even after the September 11 attacks and 2002 recession. The international prices have increased due to improved security system whereas local or national prices are very affordable to customers.Airlines' success is primarily due to their sharp focus on their goals. This is evident by their no-frills, low-cost model; their goal is to provide the safest and cheapest form of air travel between two destinations. Driven by the idea that customers can be satisfied without having expensive options available for them, International Air Transport Association, IATA, Worldwide, forecasts an increase in international air travel by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. These rates are similar to those of the past ten years. According to the past four years, results of Airlines' financial progress, they have maintained steady net sales. In 1999, they had an average net sale of $6,739 million, which had risen to $7,565 million. Their slight drop in 2002 to $7,225 million was due to the September 11th incident. However, this is nothing compared to other major industries that had lost so much more. Since then, many have even filed for bankruptcy and have been forced to close down. In fact, Airlines was the only major US carrier to remain profitable since then; Airlines was affected by the poor economic conditions.There is no alternative of Airline, which can offer the speed of air travel; most of Airlines' customers are attracted to the low price. In Europe and North America, where the air travel market is already highly developed, slower growth of 4.2%-6.5% is expected. The most dynamic growth is centered on the Asia/Pacific region, where fast-growing trade and investment are associated with soaring domestic prosperity. Air travel for the region has been soaring by up to 9.3% a year and is forecast to continue to grow rapidly, although the Asian financial crisis in 1997 and 1998 will put the brakes on growth for a year or two. In terms of total passenger trips, however, the main air travel markets of the future will continue to be in and between Europe, North America and Asia. (Michael D. Hutt & Thomas W.Speh, pp. 16)Economic growth and business activities is major contributor towards the Airlines' profitability. During the first half of the 1990s, the industry suffered not only from world recession but the Gulf War further depressed travel. In 1991 the number of international passengers dropped for...

Find Another Essay On International Airline Industry

The History of Air Canda Essay

1335 words - 6 pages (Air Canada, 2013). Air Canada's largest hub is Toronto Pearson International Airport, located in Mississauga, Ontario. The airline’s corporate headquarters are located in Montreal, Quebec (Air Canada, 2013). Air Canada has been around for about 77 years and dates back to the 1930’s. It was not named Air Canada at the time. The airline was founded on April 11, 1936, was Canada’s national airline. This airline originated from the Canadian

American Airlines and US Airweys Merged

871 words - 4 pages , Dallas Love Field, Los Angeles International and Miami International. This settlement banned American Airlines and US Airways from regaining the slots, gates and ground facilities. The gates, slots and ground facilities will be transferred to the airlines which currently do not operate large share of slots or gates. The goal of this settlement is to increase the competition in the airline industry. By having a more competitive industry, it would lead to more choices and more competitive airfares which can be utilized by the customers.

A Decline in Revenue at Quantas

1600 words - 7 pages and making a record at that time. In 1999 Qantas set up the one world international air union with some international airline company such as American airlines, Canadian Airlines, British Airlines and Cathay Pacific airlines. And now it is air routes and subsidiary Qantas link and Jet connect and now Qantas airlines have covered Oceania, Southeast Asia, East Asia, Britain, Germany, South Africa, USA, Canada, and any other country around the world

The Airline Industry Impacts on Economy

1773 words - 7 pages . International travel on U.S. airlines declined in 1990 and 1991, affected by economic slowing around the world and by heightened security concerns associated with the conflict with Iraq, but began to recover in 1992 (Shriner, 1994)."Wage inequality in the airline industry is measured in different ways. Research on labor earning performed by David Card in 1996 measured inequalities by evaluating micro data from current population studies and using

Analysis and Recommendations for the Airline Industry

3119 words - 12 pages The United States airline Industry is a complex business that is affected by many internal and external factors. The successes and failures of this industry are constantly fluctuating over time. While deregulation brought great triumph and positive change, the tragedy of 9/11 was the initial factor leading to the downward spiral of failure that the current airlines face today (Siddiqi, 2009). Currently, the International Air Transport

Airline Industry

1289 words - 5 pages 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

Hub And Spoke System

956 words - 4 pages Introduction The Airline Deregulation Act was signed into law in 1978 and allowed the airline industry to be deregulated which lifted restrictions on where they were allowed to fly (Smithsonian National Air and Space Museum, 2007). This also allowed the airline carriers to be competitive so they needed new ways to operate in order to provide services that travelers were searching for when choosing an airline. One innovation that was

Scope for competitive advantage: Australian Airline Industry

613 words - 2 pages of three business models 1) offering premium service at a full fare, 2) full service at average fares, or 3) low fares with no frills. The service could be varied by its on-board service, baggage handling, ticket and gate operations.Price policy: The low fare strategy pioneered by Southwest Airlines becomes a generic strategy within airline industry. Deregulation in most major international markets has led to harsh market share driven

Airline Sustainable Competitive Advantage

1809 words - 7 pages Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates


2298 words - 10 pages Brief Introduction/Executive Summary over the Airline Industry Air travel is currently a large, fast growing industry. It facilitates economic growth, world trade, international investment, and tourism and is therefore central to the globalization taking place in (The Airline Industry). There are many different key survival factors and drivers of change in this industry. The report narrows down the top three survival factors and drivers of

Airline industry

1888 words - 8 pages classes. Alongside in-flight improvements, including luxury sleeper seats and international cuisine, it has implemented the new entertainment system. Now, passengers can choose their own movies to watch or CDs to listen to from the collection on board.The use of the internet is another example of what airline industry have done in order to satisfy their customers. Now consumers and travelers can go online and purchase the time, place of

Similar Essays

The Airline Industry Essay

1551 words - 6 pages ' international revenue. Airline services enable access to other goods, such as vacations, business meetings, or foreign-sourced products. Thus the demand for airline services is closely linked to the demand for these other goods.Supply of airline industry is influenced by the number of aircrafts, frequency, availability of routes, number of air ports etc. While industry analysts expect continued long term growth in the demand for air travel, airline

An Analysis Of The Airline Industry

1132 words - 5 pages ). Therefore, from the point of view of barriers to entry, the airline industry can be categorized as one having imperfect competition or an oligopoly. Domestic airlines are closer to a state of imperfect competition, while international airlines function as an oligopoly. Suppliers. Airplanes, labor and fuel are the major ingredients in running an airline. There are only two major builders of commercial airplanes in the world – Boeing and

Airline Industry Research Essay

2184 words - 9 pages Airline Industry Research PAGE \* MERGEFORMAT 9 Airline Industry ResearchWilliam WardAxia College of University of PhoenixECO 205Lydia PorteeAugust 3, 2008IntroductionThe airline industry is highly sensitive to economic cycles, and throughout its history there have been many economic difficulties. Through inflation, skyrocketing fuel prices, terrorist activity and much more the Airline Industry has taken several set backs and still managed to

Sri Lankan Airline Essay

676 words - 3 pages APPENDIX 01 1) Company Background History of the Company Sri Lankan Airline launched in 1979 as the flagship carrier of Sri Lanka and today it is an award winning international carrier in air passenger transport in aviation industry. Airline is a Limited Liability Company Incorporated and domiciled in Sri Lanka, where Government of Sri Lanka holds 51.06%, Bank of Ceylon 23.54%,People’s Bank 8.23%,National Savings Bank 8.23%,Employees Provident