abhishreshthaa
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An airline provides air transport services for passengers or freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body.
Airlines vary from those with a single aircraft carrying mail or cargo, through full-service international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intra-continental, domestic, or international, and may be operated as scheduled services or charters.
Political
Deregulation as the market increases in size, therefore economies of scale may arise.
Liberalisation of skies
Ownership rules relaxed, EU and US forcing this through increasing the size of the market.
Economic
Decrease in passenger numbers
Competition from low cost airlines
Consolidation leads to alliances rather than mergers where possible
Increase in cost i.e. Insurance
Deregulation has exposed airlines, previously operating at inefficient cost levels
Many airlines in serious financial trouble e.g. Aer Lingus, Swiss Air
Supplies also experiencing sharp downturn, e.g. Rolls Royce
Social
Reluctance to fly
Need to rebuild confidence in air travel
Sub losses with knock on social affect
Technological
Economies of scale in production due to expanding market size
E-commerce method of selling tickets, therefore less infrastructure required, overhead savings
Airlines vary from those with a single aircraft carrying mail or cargo, through full-service international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intra-continental, domestic, or international, and may be operated as scheduled services or charters.
Political
Deregulation as the market increases in size, therefore economies of scale may arise.
Liberalisation of skies
Ownership rules relaxed, EU and US forcing this through increasing the size of the market.
Economic
Decrease in passenger numbers
Competition from low cost airlines
Consolidation leads to alliances rather than mergers where possible
Increase in cost i.e. Insurance
Deregulation has exposed airlines, previously operating at inefficient cost levels
Many airlines in serious financial trouble e.g. Aer Lingus, Swiss Air
Supplies also experiencing sharp downturn, e.g. Rolls Royce
Social
Reluctance to fly
Need to rebuild confidence in air travel
Sub losses with knock on social affect
Technological
Economies of scale in production due to expanding market size
E-commerce method of selling tickets, therefore less infrastructure required, overhead savings