Crisis in Airline Industry at Malaysia

6568 Words May 14th, 2012 27 Pages
INTRODUCTION

Business environment is very important and plays significant roles for sustainability of airline business. In the global and modern world, business environment also become more complicated and more challenging to the airlines. It is important for airline manager to know because it will help the airline to plan and prepare for any changes that threatens the survival of airline business.

The 21st century comes with so many changes, new technologies invented, circular of income of a country increase with better economy situation, air travel demand increasing very high which are given the airlines benefit to do business. Apparently, the 21st century not only bring benefit, but also bringing new risks for airline business
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However the challenges and risks can be controlled by a good management, correct analysis, perfect planning, and accurate decision.

It is important for any businesses to know its business environment so that it can see the economical potential of doing business and get accustomed or adapt with the changes. Besides, they can make plan in advance to capture the market ahead of its competitors. In fact, business environment is a crucial part of doing business to forecast its future in order to survive during economic recession, changing in political situation, and so many other things. It also helps to analyze the competitor’s strategies and formulate their own strategies accordingly. In addition, it helps the business company to identify their weakness and strength based on global business development.

Chapter Three
Airline’s Business Environment

3.0 AIRLINE’S BUSINESS ENVIRONMENT

In understanding the airlines business environment, definition of airlines must come first in order to understand its nature of business. Airlines can be defined as air transportation services which transport people or goods from the point of origin to the point of destination. Few firms or airlines which produce similar product which is air transportation service as their business become an airlines industry.
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