The Market Of The Aviation Industry Essay
1518 Words7 Pages
Introduction
The market of the aviation sector changes and fluctuates over time due to various factors, such as globalisation, changes in public policy and human relations movement. The airline industry all around the globe is becoming more and more competitive nowadays (PricewaterhouseCoopers 2014). It requires the corporates to have strategic planning in order to maintain their growth and market share. Transformation program that involves every single individual in the organisation can effectively help it adapts and develops further. Though it is important to spend less and earn more to survive in such competitive industry, it is also important to invest in human resources wisely so that the organisation can make the most out of their investment.
Context
The deregulation in the 1990s has greatly altered the structure of the aviation industry in Australia as well as internationally (Kain & Webb 2003). This deregulation in air fares, passenger numbers and quality of service has facilitated the rapid growth of low-cost carriers (The Department of Infrastructure and Regional Development 1995). While these changes in policies have been relatively beneficial in the consumer’s perspective, it created many challenges for legacy airlines such as Qantas. The entrance of low- cost carriers threatens legacy airlines’ market share since they are more flexible in service provision and that allows them to make a lot more profit. Moreover, Virgin Blue as a successful low-cost carrier