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Essay on Analysis Of The Airline Industry
Few inventions have changed how people live and experience the world as deeply as the invention of the airplane. During the both World Wars, government subsidies and demands for new airplanes vastly improved techniques for designing and building them. Following the Second World War, the first commercial airplane routes were set up in Europe.
The industry has progressed to the point now where it would be hard to think of life without air travel. It has shortened travel time and altered our concept of distance, making it possible for us to visit and conduct business in places once considered remote.
If the airline industry could be described in three words, they would be "intensely competitive market."
In recent years there has been an industry-wide shakedown will have far-reaching effects on the industry's trend towards expanding domestic and international services. Originally, the airline industry was either partly or wholly government owned. This is still true in many countries, but in the United States all major airlines are private.
The airline industry is very stable and unlikely to change in the near future. There are many reasons for this.
Air travel continues to grow and will continue in this fashion as long as the economy stays in an upward trend. US domestic air traffic grew 2.3% in 1998 and 3.5% in the first six months of 1999 according to Air Transportation Association. The percentage of flyers has increased an average of 2% each year and the percentage of people who have ever flown before increased from 73% in 1993 to 81% in 1997.
The top three reasons that people fly are business trips (47%), visiting relatives (38%) and going on vacation (13%). Most airline revenues are gained from the fares they charge these passengers, but they also earn ancillary revenues from transporting....
