Global Low-Cost Airline Market To 2018

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

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).

In 2010, views on whether low-fare airlines would continue to flourish in Asia varied. Three factors regulation, population demographics, and socioeconomic trends -drove this calculus. Although the target consumer base for AirAsia was enormous -more than 500 million

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.

Lingering effects of the 9/11 attacks continued over the next few years. Airlines struggled to match the decline in passenger traffic by cutting capacity and changing route destinations (Tyler). This spanned the development of low cost carriers and air fares decreased over the next few years. The rising dominance of low cost carriers in the domestic market place caused the major U.S. carriers to shift capacity from domestic to international markets. Passenger traffic finally reached its pre 9/11 levels in 2004, although, profitability did not return until 2006 (Tyler).

In this particular segment, medium has been described as the concentration of companies within the aviation industry in the duration of 2001 to 2002. In the same duration, 83% of trips of international passengers had been accounted to top ten airlines of Australia and 61% had been accounted to the top four airlines (TPC 2013). The remaining trips of passengers were served by a number of airlines utilising the large amount of global gateways of Australia. The comparative relevance of all of the major global airlines that serve in Australia has been illustrated in the pie chart given below. This pie chart depicts comparative shares of market as evaluated by number of global passengers by airlines

The global aviation business is showing extensive growth with foreign flag carriers in Asia-Pasific and the Middle East transporting more passengers to or/and from

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

According to Liu (2012), the U.S has the biggest economy in the world and its 17% proportion of the global GDP is testament to that. The U.S economy is comprised of various sectors and one of the most vital sectors is the aviation industry, which falls under the transportation and logistics sector and is a major source of growth for the U.S economy in terms of revenue, capacity building and human development. This highlights the importance of the domestic aviation industry, and any factors that affect this industry are bound to have effects on the entire economy.

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.

Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010).

The growth of airline industry in any country is directly proportional to its GDP growth; the greater the business activity, the more air travel and the higher the GDP of the country. The demand

The operating capacity of other airlines has increased significantly, with more direct flights between mainland China and international destinations. Coupled with the participation of low-cost airlines, the competition in the aviation industry is exacerbated. Overcapacity in the market is a particularly competitive issue for our freight business.

Asia is currently the largest tourist destination in the world. With increase of Chinese tourism industry and growing visitor numbers domestically and in Thailand as well an analysis by euromonitor128 states that Asia Pacific region holds half of top 20 destinations in the world and 32 out of 100 fall in this region. The Airline industry is made up of only passenger air transportation which include both scheduled and charted carriers. It excludes any other form of air transport. The Asia Pacific region which comprises of Australia, China, India,Japan,Singapore,South Korea and Taiwan has grown into one of the biggest markets in aviation industry in the world. Asia Pacific boasts of some big names in the airline industry which are also some of the largest airlines in the world. Quantas, Korean airways,AirChina,Singapore airlines and Japanese airways have major hub operations for both domestic and international operations. These carriers have a wide network and they facilitate convenient one stop flights across the world. In 2013 there were at least 980 million passengers who travelled within the region itself. The future market forecasts estimate another 100 million new passengers who would enter the market.(PATA :Trends in Asia Pacific Aviation 2015) With such rapid growth of the industry both the airlines and the airports are amongst the top names in the aviation world. Over the last decade due to high levels of economic growth there has been a great increase in the industry

The Indian Domestic Aviation market registered a growth of 5% in FY 2013-14 with a total of 60.3 million domestic passengers carried during the year. Market share of Low Cost Carriers ("LCC") comprising SpiceJet, Indigo, Jet Lite, Go Air continued to increase at the cost of the Full Service Carriers. The market share of the LCCs increased to 64% in the domestic space, with ~25% CAGR for domestic passengers carried over the last 4 years. Indian LCCs (Indigo, SpiceJet) have also increased their foothold on International routes, making up ~20% of the passengers carried by Indian carriers on International routes. This clearly demonstrates that LCCs have the business model to drive growth and sustain its operations.