Aviation Industry Essay

The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

Aviation industry got hit real hard as a result of global financial crisis. Nov ’08 IATA’ traffic data showed a 4.6% drop in international passenger traffic and 13.5% drop in international cargo and stated that the worldwide aviation industry “shrinking by all measures”. During this hard time, Qantas made a

The passenger airline industry is very mature and competition has forced many airline companies to reduce prices in order to utilise capacity. A remote analysis and industry analysis was carried out showing that the industry’s growth and profitability will be low.

Increased interest rates & credit crunch in US are affecting people to spend on luxuries like long distance air travel. The economic environment of the airline sector has been characterized by growth in relation to most key figures. Air travel demand has closely mirrored the cyclical pattern shown by gross domestic product (GDP) figures in that it responds to cyclical upswings and downswings. However, air travel growth has far exceeded GDP growth over the period. Between 1960 and 1995 the total world economy, measured by GDP, grew by a factor of just over three, while air transport, measured by tonne-kilometres, grew by a factor of nearly 20 (Hanlon, 1999).Furthermore, fuel and aircraft prices are major expenditure items subject to fluctuations and the international orientation of the industry means that movements in foreign exchange rates can have major effects upon industry profitability. Holloway (1998) maintained that aviation managers face the need to pursue strategies capable of sustaining profitability throughout entire economic cycles.

The health of the overall U.S airline industry is still tenuous in-spite of the passenger traffic volumes returning to pre-9/11 levels. A survey estimated that from 2001 through 2003, the US airline industry reported to have lost $23.2 billion dollars, compounded by an additional $1.6 billion in the first quarter of 2004. This $24.8 billion shortfall exceeds the total profits earned over the entire six-year period 1995-2000

Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.

The market of the aviation sector changes and fluctuates over time due to various factors, such as globalisation, changes in public policy and human relations movement. The airline industry all around the globe is becoming more and more competitive nowadays (PricewaterhouseCoopers 2014). It requires the corporates to have strategic planning in order to maintain their growth and market share. Transformation program that involves every single individual in the organisation can effectively help it adapts and develops further. Though it is important to spend less and earn more to survive in such competitive industry, it is also important to invest in human resources wisely so that the organisation can make the most out of their investment.

Logistics in the aviation industry is not limited to just airplane sales, production operations at the factory level, or parts distribution. It goes beyond to include pre-sale processes, storage, returns management, disposal of excessive inventory, and other supply chain concerns. Reverse logistics defines the course of moving products from end users to manufacturers for recapturing value or desirable disposal. In the aviation industry, a three-step reverse logistics approach may entail customer interaction strategies, transportation, and positioning initiatives, and value redemption plan. With the trend of e-commerce being so ubiquitous, the need for reverse logistics in the aviation industry is even more critical in today’s global world.

The main air travel market in terms of passenger trips will continue to be in and between North America, Europe and Asia. Events at the international level, affects the air travel business directly. For instance, during the first half of the 1990’s, the airline industry suffered a lot because of world recession. The Gulf War also affected the air travel during this time. Profitability of the airline industry is closely related to the economic growth and world trade. During 1990 to 1994, the member airlines of the International Airport Transport Association suffered cumulative net losses of $20.4 billion.

The airline industry exists in an extremely competitive market structure, hence the elasticity of prices. With revenue and demand forecasted to increase substantially over the next three years, the industry appears to have recalibrated from the

International aviation industry is a risky and highly competitive industry, which has to be obligated many strictly safety requirements as well as fluctuated by internal and external factories. New risk factors continue to occur in recent years, similar like to 9/11 accident, the international aviation industry has seen a wave of bankruptcies and the Asian financial crisis, SARS breaking, high oil prices, the global financial tsunami, volcanic eruption in Iceland, etc., constitute new challenges for the airline industry, they should re-examine the development strategies and policies.

The airline industry has generally seen success in the many aspects involved with it – service, tourism, innovations etc. Despite the terrorism setbacks, the industry has managed to bounce back on its feet and even produce a stunning display of grit in its armoury to be steadfast in its mission to uphold everyone’s safety yet delivering impeccable service.

The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry 's trend towards expanding domestic and international services. In the past, the airline industry was at least partly government owned.