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.

Since the enormous breakthrough of aviation, early in the 20th century, commercial airlines have been playing the most part of our sky. One of the oldest, successful, and known airlines is the American Airlines. Today, this airline carries more fleet than any other airline in the entire world, which makes it solidly one of the biggest names in the aviation industry.

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.

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 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

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.

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

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

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

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.

On the other hand governments support aviation industry by building airports, roads and hotels near airports, because they recognize this industry as an important ingredient for economic well-being. In addition governments arrange security at the airports to ensure safe journey. The terrorist attacks of September 11, 2001 have had negative implications for the industry. Over the years, all the airlines have changed their routes, marketing tactics and prices; they are also making an effort to reduce the fear and negative image associated with air-planes. Governments have imposed strict security checks on air travel passengers in order to avoid any unforeseen terrorist activity.

8.1.2 Strategic risk. The position of the company within its environment is of great importance. Due to the competitive nature of the airline industry, many companies must develop new adaptive and innovative strategies to be progressive in the market. In relation to our internal report, the core strategy of American Airlines is stimulating growth through increased regional and international capacities within the limits of the firm’s contribution target and its consolidated net income. The emergence of low cost carriers has a profound impact on the company and the airline must continue to reshape its strategies and business model to compete with rivals. The company continues to reach customer through new and expanded routes and flight schedule, however to maintain viability American Airlines must ensure that it has adequate facilities in these new markets by obtaining adequate operational areas. Furthermore, operating in Beijing, London, Paris Tokyo and other international airport outside the U.S. has its constraint and are regulated by local authorities pursuant to IATA Worldwide guidelines (American Airlines 10-K, 2017). The company continues to devise more strategic perspectives that are cost effective such as the partnership with codeshare operators. Relying on code share agreement can expose the company to risk and liability, since the airline would bear some responsibility if one of partners through these established alliance and agreement is involved in an accident or

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

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.

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).