The Greatest Impact on the Airline Industry

Topics: Airline, Southwest Airlines, Federal Aviation Administration Pages: 2 (580 words) Published: August 6, 2006
Chapter 2, Assignment on the three cases

1.The greatest impact on the airline industry is its buyers. There are not many trusted airlines in function today and as consumers become more educated they always prefer to analyze cost with quality. Suppliers are the same for most of the airline companies, being Boeing and Airbus. As for the few rivals in this industry, it has always been the competition of providing the best services with the cheapest fares. New entrants on the other hand have to meet the strict security requirements put up by the Federal Aviation Administration, as well as a huge capital to begin with. Also government restrictions in aviation industry and brand identification will make a new entrant short of passengers in this industry. Substitutes for airline industry are difficult to come by as time today is the most valuable asset for a business and a human being. Therefore, for an airlines company introduction of a low fares and safety issues have to be met in order to attract a large consumer and earn a steady profit. Airlines now have to provide better customer service and cheap fares. Once the buyers are convinced of the excellent service provided and finding no substitute to the airline industry, airline industry is going to increase in future, as the demand for speed and saving time increases.

2.With the current situation of the airline industry, a start-up airline will have to compete with the brand identification of many other popular airlines in the business. After meeting the safety measurements put up by the government, low fares and strategy consumer advertising will ensure a consumer interest in the new airline. Also a very good and strong customer service needs to be employed from the administration to the frontline employees of the start-up airline. In order for the start-up airline to be able to provide cheap fares it needs to opt for co-operative strategies. The airline must look for cooptation and coalition between its...
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