How Aviation Industry Influenced By Information System Essay

The United States aerospace and defense industry is the largest of its type in the world.

During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management

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.

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.

The airline needs to find innovative ways of improving its technology by keeping up to date with the current trends, online chats to assists consumers, permitting consumers to utilise data whilst on air. A proper marker research needs to be conducted to establish the preferences of the consumers. Employees need to be trained on technology upgrades.

The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.

Although the airline industry is in the business to transport people from one place to another they could not function without those who keep the airplanes operating on schedule. The airline industry has become the major provider of public transportation for Americans traveling between the nation's cities. Scheduled airlines now account for 92%

The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.

The airline industry is classified into four categories by the Department of Transportation. The four categories are International, National, Regional and Cargo. The following are

The Boeing Company has registered strong growth in the developing markets in China, Oceania and Africa (Boeing Frontiers, Nov. 2005). For the fiscal year 2005, revenues from China grew by 87.9%; revenues from Oceania grew by $32; and revenues from Africa grew 61.8% over the 2004 fiscal year. These regions represent some of the fastest growing economies of the world. The Boeing Company's growing market share in these regions would boost the company revenues of the future (DATAMONITOR).

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

The aviation industry has been different however, as to date; it has mainly been dominated by two main Western players Boeing and Airbus. Now that China has also entered the Aviation industry, it will not be fool hardy to say that the Aviation industry is bound to undergo another transformation.

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.

Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.