challenges of full service airline facing today

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

Modern airline travel has become so commonplace that it is very similar to the crowded train system of the 1920s and 1930s. In the highly competitive airline industry, while not the largest company, the company that seems to glean the most press for providing innovative solutions and customer service is

This is an analysis of the Airline Industry in Europe. The paper will cover the current market situation, including financials and market volume. Following this will be a Five Forces analysis on the factors that affect industry competition. The paper will conclude with key insights into the profitability of the industry and a SWOT analysis of one of the industry’s best performers and what rivals and possible future entrants can learn from their success.

The airline industry has been a major factor in the globalization of the world economy. It connects the sellers and the buyers as well as transports goods across countries. It also breaks the time and distance barriers. In the past, air travel was considered a luxury but it is now a common necessity.

They serve no meals, do not offer seat assignments, and do not baggage to other airlines. They avoid airports with high landing fees or frequent delay. All of this enables them to make quicker turns and fly more legs each day, resulting in lower fares. Today they are without question the most successful airline in America-if not the world.” (p.8, 2002)

The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at

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 companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs.

American Airlines Group (AAG) vision is to become the largest and most profitable airline in the world. In 2013 a merger with U.S. Airways was announced and that vision can now become possible. The merger has opened many doors and provides an extensive operational network. They are committed in providing the highest quality service to every individual in the world. American Airlines provides continuous efforts of modernization of their fleets as well as maintaining a position as the largest air carrier in the world. Even with the competition intensifying, there are continuous efforts to distinguish themselves by offering three levels of flying class services. With the different types of flying classes, American Airlines Group

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

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

There have been few inventions to change how people live and experience the world considerably as the creation of the airplane. Today, traveling by air has become the norm and it would be difficult to imagine life without it. Air travel has improved the way people are able to conduct business by shortening travel time and changing their thought of distance. The companies within the airline industry exist in a very competitive market. One of those companies, Southwest Airlines, features low-fare, no-frills air service with frequent flights of mostly short routes. Costs are kept down by the exclusive use of Boeing 737 aircraft, which allows for low maintenance costs and quicker turnaround times for flights, and by an emphasis on ticketless travel (Encyclopedia Britannica). This paper will address two segments of the general environment and how they affect Southwest and the airline industry; evaluate how Southwest has addressed two forces of competition; predict what Southwest might do to improve its ability to addresses these forces; assess the external threats affecting Southwest; discuss Southwest’s greatest strengths and most significant weaknesses; determine Southwest’s resources, capabilities, and core competencies; and analyze their value chain.

* First of all people who go to an airline are because they have the need to travel, which the main feature is. Inducing the consumer or person, as their main need.

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.

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