CHAPTER ONE: INTRODUCTION Airline industry considers being one of the most important tools of the creation of a global economy. It is a major economic force as it has a strong impact on the related industries such as tourism, cargo, and aircraft manufacturing (IATA, 2015; CAPA,2013). Today the global airline industry continues to grow quickly. According to the International Air Transport Association (2015), the industry revenue has doubled over the past years to reach $746 billion in 2014. Low-Cost carriers (LCCs), has been driven much of that growth.
Aeronautics gives the main transportation arrange over the globe and it is critical for worldwide business improvement and tourism advancement. Air transportation is a standout amongst the most imperative administrations to offer both noteworthy social and monetary advantages. By serving tourism and exchange, it adds to monetary development. It likewise gives employments and expands charge incomes. Air transportation is key for
While these cities continue to be profitable to the company (CAPA Center for Aviation, 2015), they should consider increasing their access to other cities as well. Frequent and extensive flights in the San Diego and the San Francisco Bay Area will enable the company to capitalize on the business and tourist travels. The company can develop hubs in these major cities that it is considering to tap into. The development capital will include a credit that is payable within ten years depending on the revenue that will be generated by the new
Introduction This report is about the American airlines industry and its market share, competition, and including the future prospect of the United States of America. The airline industry is a large growing in transportation industry, and it has contributed to consumer’s lifestyle, and has the most impact on traveling culture, and improves quality of customer’s life by broadening people’s leisure and cultural experiences. Air travel also provides a lot of advantages to tourists who love to travel to many places for either vacation or business trip, and airline is only a transportation that provides convenient, comfortable, and faster for travellers to search their destinations (Massachusetts Institute of Technology, 2014). Recently, many
The Government of Dubai made arrangements through the regulators to facilitate inflows of tourists by relaxing certain visa requirements and launching major marketing campaigns. The government supported the emirates entry in to new markets/destinations negotiating bilateral aviation agreements with certain other countries with which markets that the Emirates wanted to do the business. Dubai air port introduced world largest duty free shopping complex, modern facilities and lounges with the service viz. luxury spas for the passengers who are travelling on business class and first class. The passengers who are concluding their journey in Dubai were benefitted from hassle free visa on arrival, a unique offering in the region where tourist’s visa was the
They facilitate trades between countries, enabling these nations to participate and have access on international markets and allowing globalization of their own products. Given that the Air Transport is the most rapid form of global transportation network, many societies depend their economy on this, and as a consequence, makes it critical for tourism and global businesses. The Naga Airport has been serving for many years since its beginning can
For introducing such a lavish service, the airline has to focus both on business VIP travellers and price insensitive leisure travellers. Etihad has always followed a traditional approach adopted by legacy carriers for segmentation and this approach focuses on Psychographic division of the market. The same could be adopted by the organization during the introduction of this new service. This type of segmentation usually involves identifying the social class, lifestyle, opinions, interests, behaviour and attitudes of the customer. As this service would cater both the two segments, hence it should be fabricated according to the nature of demand of both the groups.
(Goel, 2003;Evans, 2001) In response to the international trend and satisfy the customer needs, the airline companies join the airline alliance one by one. For the big-scale of airline companies, they take the several major cities as a hub-and-spoke route, the use of the frequent-flyer programs (FFPs) and the form of the code-sharing flight to be the basic competitive strategy. It’s the way that covering the domestic and international flight market and the regional flight, also, the developing of the Computer Reservation System (CRS) let the flight ticket sold out more widely, so the airlines companies can have the effective competition in the overseas market. (Tang & Tseng, 2010).Thus it can be seen that the airline companies take the measure to reduce the cost and increase the quality of service, use the global resources to economize the overhead. There are several scholars who explain the motivation of forming airline alliance (Lorange & Roos, 1991; Glaister & Buckley, 1996; Bennett, 1997), it can be generalized in two factors: External factor and Internal factor External
For example, an airline employee purchases a house in the local area of a nearby airport. The income that is spent by the builder to purchase other goods and services is the multiplier effect which one transaction leads to another. Economic growth on the other hand has a significant impact to the growth of the aviation industry. When the economy is growing, companies expand their business which is leading to an increase in business travel. The economic prosperity is measured by indicators such as gross domestic product (GDP).
Wide range of publication media from print technology to modern wireless technology have been abundantly exploited in distribution, pricing as well as in customer attraction. Thus, the term e-tourism has been coined which provides the industry bodies to share knowledge, research new trends, create opportunities and to create competitiveness, etc. (Cooper C. (1989) Progress in Tourism, Recreation and Hospitality Management, Belhaven Press: London; &Cooper C. and et al. (1999) Tourism: Principles and Practice, 2nd ed., Longman Publishing: Harlow;) Technology then has become a mixed bag for the tourism industry. It creates a great deal of conveniences while at the same time has been used as a way to increase revenues and to lessen customer service.