The U.S. Airline Industry
The U.S. Airline Industry
The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.
Key Survival Factors Include
Locations that an airline services – The servicing of particular markets is essential in the nature of the airline industry. Airlines need to offer routes between markets that are desired by customers.
Cost structure of an airline’s operations – The costs of operations for an airline are a limit to how low airfares can be. Costs include maintenance, fuel, labor, fees and lease payments for operating in airports. Those airlines that are able to control costs can attract customers with lower fares and can improve overall profitability.
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An airlines’ workforce and its interaction with customers – A Pleasant workforce can encourage repeat business. An unhappy workforce can drive customers away to rivals.
Reliability of Service – An airline with a reputation for reliable service has a positive image among customers, which can lead to repeat business. Issues with reliability include mishandled baggage, the on-time arrival of flights, overbooking flights, and passenger complaints. Those airlines that are able to control these elements provide better service to the customer.
Drivers of Industry Change
Consolidations and Alliances – Many airlines operating in the U.S. have
The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.
Key Survival Factors Include
Locations that an airline services – The servicing of particular markets is essential in the nature of the airline industry. Airlines need to offer routes between markets that are desired by customers.
Cost structure of an airline’s operations – The costs of operations for an airline are a limit to how low airfares can be. Costs include maintenance, fuel, labor, fees and lease payments for operating in airports. Those airlines that are able to control costs can attract customers with lower fares and can improve overall profitability.
(Site this web article here http://dallas.culturemap.com/news/travel/05-19-14-southwest-airlines-virgin-america-new-low-fares/)
An airlines’ workforce and its interaction with customers – A Pleasant workforce can encourage repeat business. An unhappy workforce can drive customers away to rivals.
Reliability of Service – An airline with a reputation for reliable service has a positive image among customers, which can lead to repeat business. Issues with reliability include mishandled baggage, the on-time arrival of flights, overbooking flights, and passenger complaints. Those airlines that are able to control these elements provide better service to the customer.
Drivers of Industry Change
Consolidations and Alliances – Many airlines operating in the U.S. have