Factors Affecting The Airline Industry

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The September 11 attacks left a major impact that the airline industry is yet to recover from. Extended recession and increasing oil prices are the other major factors affecting the growth of the airline industry. At this scenario, the airlines operating with unoccupied seats make huge losses and sometimes the airliner even goes bankrupt; for instance, the kingfisher airlines in India has gone bankrupt due to failure in managing the unoccupied seats and inefficient management in their ticket pricing strategies. Even the recent disappearances of aircrafts from Malaysian airlines have unfavorably affected the global airline industry leaving airlines operating with vacant seats.
It is very important for every airliner to create value for their shareholders; ticket pricing is the main source that an airliner can make revenue from. Therefore, airliners should have strategies that help them to be sustainable in the industry. I think that my research is on a problem that most of the airliners are facing today. Especially domestic airliners and the airlines with limited destinations are making more losses due to improper pricing strategies. This research focusses on creating a value to the airliner that I will be working for. It also creates value to the shareholders and stakeholders of the company. As every business is based on the customer satisfaction, my research is achievable if I could make a good analysis of customers’ needs and wants.
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