Entrepreneurs and Revolution in the Airline Industry

1311 WordsMay 8, 20136 Pages
The airline industry has developed immensely over the past few decades with aircraft being a major mode of transport for the mass movement of people. This is down to entrepreneurs such as Herb Kelleher, Michael O’Leary, Freddie Laker and Richard Branson who have all contributed in the growth of the industry and made it into the multi-billion pound industry that it is at present. There are four types of flights that make up the airline industry as a whole; Scheduled, Charter, Low Cost and Freight. These airlines are situated at HUB’s, central airports that flights could be routed through (LHR) and fly to smaller SPOKE airports, which are the routes in which planes take out of the HUB airports (Smith, 2007). This system was introduced as a…show more content…
This style of low cost airlines caught on and appealed to other entrepreneurs, one being Freddie Laker, who founded Laker Airways in the UK around the mid 1960’s. It took him over 11 years of escaping government laws and regulations but finally introduced his transatlantic Skytrain that flew from Gatwick to New York (Herb Kelleher Biography, 2008). One of Freddie’s biggest achievements was that his airline forced bigger airlines to cut their prices by two thirds due to the industry becoming increasingly competitive (Gumbel, 2006). Before now, competition in the industry did not exist but because of entrepreneurs having invented low cost fares, the rivalry of smaller, short haul flights with bigger, long-haul airlines was growing. The larger airlines that used to dominate the industry were no longer doing so, mainly down to Freddie Laker. Richard Branson, entrepreneur and co-founder of Virgin Atlantic, was the only person to successfully follow Freddie Lakers path. Starting off with Virgin Records, he used his skills and efforts to expand on his business and in 1984 Virgin Atlantic took off as a long-haul airline (In the beginning, 2008). He has not only added to the industry by presenting the best known, first class brand, but he has also expanded his business to include a

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