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Airline Industry - Assignment Example

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This paper analyses opportunities and threats facing the European airline industry. The reflective report section provides the insights into the processes and factors that affect the industry the industry. It provides an overview of the case study (European aviation industry)…
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Airline Industry
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Download file to see previous pages This entails enhancing overall air travel and market penetration, given the uniqueness of the European market in terms of labor costs, market size, air travel substitutes, deregulation measures and new-play entry prospects. In the introduction section, the report provides a general view of the European airline industry. The report will also include a summary of the PESTLE analysis (in tabular form), opportunities and threats facing the European airline industry. The reflective report section provides the insights into the processes and factors that affect the industry the industry. The conclusion part will provide an overview of the case study (European aviation industry).
Since 1919, countries, especially in Europe, had sovereign rights over the airspace in their territories. National governments took responsibility to regulate the industry. However, from 1944, countries began setting rules touching on economic rights in the aviation industry. For example, the U.S. called for an open skies policy through a multilateral agreement. However, European nations called for the formation of an international regulatory authority to regulate issues such as capacity and traveling fees to build the industry. Since then, the European airline industry has changed, thereby promoting competition.
Given the diverse issues discussed above, issues specific to Europe’s aviation sector affect the nature of ‘new entry’ airline performance and overall competitiveness. Captain and Sickles (1997) assert that cost implications affect overall airfare, time-utility, overall efficiency and effectiveness of industry players in promoting air travel as the preferred means of transport in Europe. This captures both short- and long-haul travel be it goods, cargo or passenger travel. ...Download file to see next pagesRead More
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