How Can You Decide Which View To Accept?

Four scenarios are examined and the following is the summary of results for each of them.

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

For all responses to each assignment, provide the rationale for your answers and any assumptions that you are making.

The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.

question. Students must consider factors and provide a rationale for which of these sets of ideas is of greater importance.

To understand what the benefits and drawbacks  were, it is important to compare and contrast the positions in which the documents differ. I believe that they are thus:

1. Most efficient use of resources to cover market needs. Management will look at more than

c) Cover the advantages and disadvantages of each system – in which context does each perform best?

In the following paragraphs I will try to show you reason for all three opinions.

With the scenario in mind, thoroughly answer the following questions (in paragraph format, properly citing outside research, where appropriate):

However there are several cost drivers that could break the airline and cause a large loss of income. A few are; excess flight

Significant barriers to entry such as high regulatory and capital cost requirements and a fiercely competitive industry along with barriers to exit and the recent failure of airlines such as XL

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

Operations in international and/or foreign countries will create significant operational challenges. Differences in governing laws and regulations for the airlines industry, business, and employee relations will become challenging. Interpretation and intent for various laws can and will provide ambiguity that must be dealt with. Research shows that various international airlines continue to be plagued by high costs and poor service (Ramamurti & Sarathy, 2007).

3. Tickets are expensive compared to other airlines that provide the same services at cheaper rates.