Factors Affecting the Airline Industry

In this paper we analyze the 2011 Southwest airline annual and then major an in-depth analysis of its mission and vision. The analysis of how its performance is linked to its mission and vision is also carried out. This is then followed by how its corporate goals are tied to its mission and vision. This paper then presents a competitive and market analysis with the aim of determining the company's strengths and weaknesses. A recommendation on the most appropriate strategy for the maximization of company's profits is then carried out.

This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better

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).

This section will examine each of the five competitive forces that are active in the European Airline Industry. In this instance the buyers in the industry will be taken as passengers. Fuel companies, aircraft manufacturers and employees are the suppliers. Substitutes stem from modes of transport that fall under land and sea transit. Potential entrants are any airlines based outside of Europe or newly founded airlines based in Europe.

Overall, the five forces model suggests that the overall intensity of competition in the airline industry is likely to be severe. Back in the early 1980 's competition was very intense. During the late 1980 's the monopolization of major routes by a few major carriers, the limited availability of free landing spots at major hubs and the emergence of limited brand loyalty and tacit price agreements have all helped reduce the intensity of competition. However, as already mentioned, slumping demand in the early 1990 's plunged the industry once more into a severe price war. Airline travel is a commodity-type product, with limited potential for differentiation.

In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

With the majority of American Airlines competitors in domestic industry, it is crucial for them to keep up to date with the latest business strategies their competitors are integrating in to their businesses. Depending on what strategy American Airlines Company decides on, it needs to be differentiated compared to their competitors in order to succeed in this airline industry.

The modern day airline industry is a highly complex and dynamic industry, characterized by numerous elements. For instance, the airline industry is now, unlike its inception period, populated by privately owned companies, rather than state owned enterprises. Then, the airline sector is marked by high levels of financial resource consumption, employment concerns or pollution complaints.

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market

The aim of this report is to give an overview of the UK airline industry using a variety of sources. Firstly looking at what the industry is exactly, its value and what it does for the UK. Then moving on to brand comparison, where low cost budget airlines will be compared to those offering full-service flights. Then finally, ending with recommendations and conclusions of the UK airline industry.

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.

In this paper I will be analyzing the airline industry using Porter’s Five Forces. Porter’s Five Forces is a business management tool that allows firms to possess a clearer perception of the forces that shape the competitive environment of an industry, and to better understand what these forces indicate about profitability with regard to the microenvironment. The forces include Competitors, Threat of Entry, Substitutes, Suppliers, and Customers. When firms are able to widen their conception of competition beyond their direct competitors, and consider the broader economic fundamentals of their industry, they are able to form better strategy to better optimize their profitability. The airline industry is one characterized by low

Etihad Airways is considered as one of the youngest airlines in the world, yet it managed to seize a leading place within the aviation industry. Etihad Airways received the 2008 Marketing Award of the “Airline Strategy Awards”, one of the most recognized awards in the industry, just five years after starting commercial operations, followed by many international awards. This early success can be attributed to the marketing strategy employed by Etihad, which resulted in creating a strong brand associated with a high quality service. Etihad’s marketing strategy focused on creating new innovative services in every touch point with the customers. This report will focus on Etihad’s marketing strategy, which enabled the airlines