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The first major benefit the airline industry would gain would be the safety of its passengers. Section 601(b) of the FA Act specifies, in part, that when issuing certificates, the FAA shall give full consideration "to the duty resting upon air carriers to perform their services with the highest possible degree of safety in the public interest . . ." Why? Because safety is also related to profitability of an airline company! The first step would be to establish the fact that safety issue is not just about accidents, it is also about prevention. Accidents are few but they cost the company a lot of money in terms of insurance payment as well as bad publicity. In a study made by Mitchell and Maloney ( 1989) it was revealed that “found that share price falls can be attributed both to the projected future costs of higher insurance and to a brand name effect associated at-fault attribution “ ( qtd from. Button,1997 ). Bad publicity is bad marketing and people lose trust in a certain carrier that is involved with frequent accidents. If management wants to avoid costs, then it must pay attention to its safety programs. The best possible way to change the management’s view about safety is to make a presentation that would justify safety as a way to minimize future costs. I would ask a group of industry specialists on safety to present to the management the benefits of safety to our company and relate it to financial matters.
The only problem with the implementation of safety is that some airlines do get favorable treatment from the government. Popular participation from citizens such as lobbying in Congress as well as writing the government should put pressure to the government to be more tight in its monitoring and control of private airline companies. It is not evil to make profit out of rendering service, that is free trade. However, profit is not
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US Airline Industry
Recently, the industry suffered poor level of profitability. There are various factors that could substantially explain this and the bottom line of doing it would mean understanding the external and internal business environment of the US Airline Industry.
Previously before the deregulation act the Civil Aeronautics Board (CBA) was responsible of regulating the airline industry. The CBA regulated prices charged by the airlines for the services they offered, the entry of airlines in the industry, that is only airlines registered and approved by this regulatory body access United States airport, also they regulated any form of business combination in this industry as well as any agreement between the different players in this sectors.
There are a number of theories on strategic planning but this discussion briefly explores two theories of change: An organizational theory of change and a program theory of change. The program theory of change incorporates reasons why an organization avails its services in the manner it does to its customers.
As such it is the lynchpin of any industry. It is all – pervasive. It is important to recognize that everyone in the airline can contribute to the marketing process. The essence of marketing is to identify and satisfy customer needs; to be consumer-or- market oriented rather than production – or supply oriented.
This paper discusses the need as well as the extent by which government should exercise control over the airline industry.
To some degree, government regulation may be deemed as vital in keeping the efficiency level within the airline industry. Since
Reference used is current and includes the following; Quantitative and qualitative data relevant to this study are as follows; Diabetes UK, Medline via OVID SP, Embse, British index, via OVID SP, social science citation index via Thomson ISI, NHS evidence collection for ethnicity and health. The authors contacted various evidence apart
jectives of the Act included the safeguarding as the utmost precedence in air commerce, placing highest confidence on antagonism while providing the services of air transportation, encouraging the air services at the urban areas through the availability of secondary or satellite
The paper also discusses the pros and cons of regulation and deregulation and the need of air line industry to be reregularized.
The main purpose behind the regulation by government is to maintain a stable industry. The air transport industry
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