Global Scenario and Trends 5
History and the Current Scenario of the Indian Aviation Sector 6
Challenges Faced by Airline Industry 10
Future Trends 11
The Airlines is one among the inventions that had changed the way how people live and experience the world. In due course of time it has now become impossible to imagine business and leisure travel without air travel. The airline industry exists in an intensely competitive market. In recent years, there has been an industry shakedown, which is expected to the trend towards expanding domestic and international services.
The airline industry is classified into four categories: International, National, Regional and Cargo. Airlines industry facilitates economic growth, world trade, international investment and tourism and so plays a key role in globalization making it a large and growing industry.
Air travel (both business and leisure) has grown by around 7% in the last decade. Business travel has grown as companies having global presence in terms of their investments, their supply and production chains and also their customers. Availability of aircrafts at affordable prices backed by increased tourism had led to rise in leisure travel. Overall in terms of regions in developed regions like Europe and North America a slower growth is seen when compared to developing regions like Asia Pacific.
Airlines' profitability is closely tied to economic growth and trade. So based on the GDP growth the demand for airplanes and the air travel will increase. So during 1990-1995, the industry suffered from world recession and the air travels were further lowered by Gulf War. Thus financial difficulties impact airlines/aircraft industry. Deregulation is also stimulating competition, such as that from small, low-cost carriers.
Some of the Key terms and ratios for airline industry are listed below.
1) Available Seat Mile = (total # of seats... [continues]
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