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Global Airline Industry Analysis

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Global Industry Trends & Future Outlook
The global airline industry basically comprises of air transport service providers of both passengers and cargo. According to the International Air Transport Association (IATA), the global airline industry has doubled its revenue over the last decade, from US$369 billion in 2004 to a projected US$746 billion in 2014 (PwC, 2015). According to the IBISWorld Industry Report (2015), the global airline industry looks set to increase its revenue growth by 1.2% to $783 billion. In the recent 2015 IATA’s Annual Review, we have witnessed good profit in the global airline industry with a strong net profit of US$16.4 billion in 2014.
Through the 1980s and 1990s, the emergence of low-cost carriers (LCC) has a big …show more content…

This was coupled with the financial crisis in 2008, prolonged recession, fluctuations in oil prices, competition from the low-cost carriers (LCC), and the increasing maintenance and operating costs, which had resulted in global slowdown in the airline industry (Makos, 2014). The negative economic conditions have caused major airlines bankruptcies and consolidation of airlines through mergers, in order to survive the harsh business conditions (Management Study Guide, …show more content…

This is evidenced by the government bailout from its bankruptcy due to the recent air disasters. It is one of the most popular airlines (prior to MH370 and MH17 incidents) in the world, covering over 80 destinations across the globe. It is an airlift hub with extensive operations in South Asia, Middle East, Australia and other global destinations. The company focuses on strong branding which has enabled it to enter restricted markets. Meanwhile, one big advantage of Malaysia is its wide range of natural resources such as crude oil, natural gas, palm oil etc (MATRADE, 2011). The country has the financial capabilities to provide backing to its ailing national carrier and ensure its comeback. One area whereby Malaysia’s air travel relies on heavily is its booming medical tourism. It is one of the world’s top spot in the medical tourism’s global expansion (Hockton, 2014). With the depreciation of the ringgit, this increases its attractiveness as a medical tourism hub for the

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