Current Situation of Airline Industry
Since the airline industry was deregulated in the late 1970s, they shall hold the line on the number of planes they fly. The result is that the people by plane shall be more and more, and the fares shall become expensive. Because air transport is faster than other transportation methods, the people increasingly prefer to fly. The air transportation shall be an important transportation method in the future, and the people engaged in air transportation shall have a brilliant future. The plane is not only in transportation, but also it can be used in military. The profits of airline are very substantial.
Airline tried to maintain this situation for more profits. But they failed, because appeared many new competitors, and they vied for market share. More and more people find that airline industry is a lucrative industry, so they also want to gain the greater profits. But it is not smooth, they faced an economic crisis, and the air suffered in the last decade. Three years ago, the oil price was steep jump. A dozen airlines went out of business. Some carriers were merged, and shrank the number of player. Any industry shall not always be smooth, airline industry is so. They should always prepare for economic crisis, and do not just see the immediate benefits. The fare shall be variable with the change of oil prices. Under this situation, the number of scheduled flights shall become fewer. According to the analysis, the number of scheduled flights in this year is nearly same with the last year. Except bankruptcy, the airline can only reduce the number of scheduled flights among cities. They also provide smaller planes for increasing the profits. And the competition shall be more and more fiercely. The number of reducing scheduled flights shall be more and more especially in the recession.
For the increasing demand, the airline has no ability to meet with it. Because the demand risen is more than airline addition. But the...
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