The Airline Industry

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.

Right now, there are only two major manufacturers in the world, Boeing and Airbus. Both of them have systematic products that cover 100 passengers to over 400 passengers. Right now Boeing is trying to make planes can be operated with low cost with no changes of performance.

The trend line is a indicator that gives an idea about long-run performance of an industry. Key trend area to look into in terms of the airline industry is cost. The airline industry is very sensitive to cost such as fuel, labor, and borrowing costs. Fuel prices tend to fluctuate on a monthly basis. It is very important to pay close attention to these costs.

level of 30 years ago (BA Fact Book, 2002). The birth of the low cost

Buyer power has changed significantly in the airline industry over the last 20 years due largely to industry deregulation and technological innovation related to the impact of the Internet. Prior to deregulation, the Civil Aeronautics Board’s control over pricing and airline routes gave the consumer very little power as it did not provide the choices of unregulated competition. If consumers did not like the prices available for air travel, they were forced to look for substitutes, none of which offered a similar value proposition as the airline industry.

The airline industry is interpreted as being very unstable due to the immediate reaction to tragedies. The airline industry was affected following the September 11th tragedy and it affected other industries indirectly. The airline industry plays a key role in

Conceptual air carrier, Poppi, provides the framework for an analysis that will be discussed throughout this paper in regards to disruptive technologies and their effect on the airline industry. Baltzan (2015, p. 231) observes that disruptive technologies are “a new way of doing things that initially does not meet the needs of existing customer.” Shu (2015) offers the airline industry is continually trying to reinvent itself to attract attention and increase revenue. However, the stress and headaches experienced by most

With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.

The aviation industry provides air transport services for passengers and cargo. The industry is categorized into domestic, international, intra-continental and intercontinental routes. Some companies are only into passenger or freight transportation whereas some are in both in national market and

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

Meanwhile the external analysis refers to the people and the process that are outside the organisation and it most unlikely that this factor can be controlled by the organisation. External Analysis can be assessed by using PESTEL.

In the airline markets, SIA has strong competition from not only Asia areas, airlines but also many international brand airlines such as United Airlines and American airlines (best airlines in American for 2012). Although SIA has a great brand reputation with global markets, but it also continually develops the new equipment in the busy airline industry to provide the new attractive point for increasing the customer satisfaction.

The Airlines Market within the United States of America is very important in the role it plays. This industry thrives on what happens upon the profits, failures, successes and all around survival of certain markets. We find that to often within a market there are many gains and profits because of new industries leaving and new industries entering. An Airline market can consist of many different types of businesses plans. The theory behind how American airlines compete among other airlines is with price elasticity. We find that we stay a float by the prices that are offered for certain flights etc. The airlines use the competitive edge by allowing the company to survive. Government can have an adverse effect on what it can do to force

Closely linked to economy - The airline industry can be described as highly cyclical since it

Literature reveals that the globalisation of the airline industry has resulted in easier accessibility across international borders. This has greatly benefited the tourism industries economic sector with a rise of foreign tourists and an increase in global competition (Dwyer, 2015). However the negative effects on the environment are vast with climate change has become a global problem. A swish study proved that out of the countries examined, 50-85% of tourism based emissions are as a result of air transport and therefore if the tourism industry is to reduce emissions, it can only be achieved through a major decrease in these environmentally destructive emissions caused by aviation (Perch-Nielsen et al, 2010).