Low Cost Airlines
1. INTRODUCTION
The Airline Industry has been growing persistently and consistently over the past decade. Central to the globalization taking place in many other countries is the Airline Industry as it facilitates world trade, economic growth, international investment and tourism. It’s growth has generated many new opportunities for the tourism development. The benefits of tourism to the national economies of the countries are being realized by the government of those countries. Because of the companies becoming increasingly international in term of their production, distribution, investment and their customers, business travel has also grown rapidly. Very closely tied to economic growth and trade is the Airline’s Profitability. The air travel industry’s outlook is very strong and fast growing. The Tourism Industry is directly or indirectly related to the Airline Industry. Customers must be understood in order to understand how the new aircraft might fit into the current market. Travel and Tourism can be thought of as a manufacturing industry. Tourism has become one of the major international trade categories. For many developing countries it is one of the main income source and number one export category, creating much needed employment and opportunities for development. The worldwide contribution of tourism to gross domestic product is almost similar to that of airline industry. The importance of tourism tends to higher in developing countries thus making more flights to fly to that destination resulting in inter dependence of tourism and airline industry on each other. One of the best ways to keep this interdependence alive and foregoing was the introduction of the low-cost airlines. The low-cost airlines as the name suggests are amazingly cheap but for every additional thing (from food to luggage), the customer has to pay but another plus point of low-cost airlines besides being cheap is that it promotes tourism vastly. As nicely said by Thomas Fuller, “The
The Airline Industry has been growing persistently and consistently over the past decade. Central to the globalization taking place in many other countries is the Airline Industry as it facilitates world trade, economic growth, international investment and tourism. It’s growth has generated many new opportunities for the tourism development. The benefits of tourism to the national economies of the countries are being realized by the government of those countries. Because of the companies becoming increasingly international in term of their production, distribution, investment and their customers, business travel has also grown rapidly. Very closely tied to economic growth and trade is the Airline’s Profitability. The air travel industry’s outlook is very strong and fast growing. The Tourism Industry is directly or indirectly related to the Airline Industry. Customers must be understood in order to understand how the new aircraft might fit into the current market. Travel and Tourism can be thought of as a manufacturing industry. Tourism has become one of the major international trade categories. For many developing countries it is one of the main income source and number one export category, creating much needed employment and opportunities for development. The worldwide contribution of tourism to gross domestic product is almost similar to that of airline industry. The importance of tourism tends to higher in developing countries thus making more flights to fly to that destination resulting in inter dependence of tourism and airline industry on each other. One of the best ways to keep this interdependence alive and foregoing was the introduction of the low-cost airlines. The low-cost airlines as the name suggests are amazingly cheap but for every additional thing (from food to luggage), the customer has to pay but another plus point of low-cost airlines besides being cheap is that it promotes tourism vastly. As nicely said by Thomas Fuller, “The
Bibliography: (n.d.). Retrieved March 30, 2010, from ICMR: http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR057.htm (n.d.). Retrieved March 30, 2010, from Times of Malta : http://www.timesofmalta.com/articles/view/20100304/local/agreement-reached-on-ryainair-base-in-malta Advfn. (n.d.). Retrieved March 30, 2010, from http://www.advfn.com/news_New-Routes_8683874.html Baum, T. (2004). Tourism and Transport. Retrieved March 29, 2010, from ETC Proceedings: http://www.etcproceedings.org/paper/low-cost-airlines-social-inclusion-or-social-exclusion easyJet announces 10 new routes for 2010. (n.d.). Retrieved March 30, 2010, from fly lowcost airlines: http://blog.flylowcostairlines.org/2009/11/30/easyjet-announces-10-new-routes-for-2010/ Ryanair News. (n.d.). Retrieved March 30, 2010, from Ryanair: http://www.ryanair.com/en/news/rte-en-140607 The Airline Industry. (n.d.). Retrieved March 29, 2010, from http://adg.stanford.edu/aa241/intro/airlineindustry.html