Trends and developments in the airline industry

Table of Content

1

Introduction ............................................................................................... 1

2

What are the characteristics of the airline industry? ................................. 2

3

Which were the most important trends and developments in the airline industries’ past shaping the current future? .............................................. 4

4

Which trends and developments can be identified in the current airline industry that will shape its future? ........................................................... 10

5

Conclusion .............................................................................................. 19

REFERENCES .................................................................................................... i

APPENDIX
Appendix I
Appendix II
Appendix III
Appendix IV

1 Introduction

1

1

Introduction

The airline industry is a large and growing industry which is, because of the great everchanging environment it operates in, forced to constantly adapt and enhance business models in order to survive, compete and to generate profits. In this context this report will investigate the developments and trends and their importance in the airline industry that influence its future the most. In accordance with this aim the Problem Statement reads as followed:

Which trends and developments in the airline industry will have the most impact on its future?

To clarify the context of the widespread and complex airline industry and to provide an overview, firstly the most relevant characteristics of the airline industry will be discussed, so it will be clarified in what environment it operates in and what factors it is influenced by. Moreover, due to the fact that the whole airline industry is in constant and often protracted development, also the past of the industry has to be considered. Therefore past trends and developments and how they influence

References: Travel Industry Wire. (2013a). IATA Releases World Air Transport Statistics for 2012. Travel Industry Wire. (2013b). Alaska Airlines is Most Fuel-Efficient U.S. Carrier. Ac- cessed on 25 February 2014 via http://www.travelindustrywire.com/article73768Alaska_Airlines_is_ Travel Industry Wire. (2013d). The New Wave (Featured in Low Cost & Regional Air line Business) Travel Industry Wire. (2013f). Delta, Virgin Atlantic File Antitrust Immunity Application. Travel Industry Wire. (2014a). United Airlines is the First to Fly with New, Fuel-Efficient Split Scimitar Winglets Travel Industry Wire. (2014b). American Airlines And US Airways Complete Merger. Accessed 07 March 2014 via http://www.travelindustrywire.com/article69386American_Airlines_And_ USA Today. (2012). It 's official: Qatar Airways joins oneworld frequent-flier alliance. Accessed on 08 March 2014 via http://www.usatoday.com/story/todayinthesky/ 2012/10/08/qatarairways-oneworld/1619683/ Wyman, O. (2012). The future of airports: Part 1 – Five trends that should be on every Airports Radar Adapted from “IATA Financial Monitor for Jan/Feb-2012” by IATA, ICAO & Haver, 2012, IATA Financial Monitor. Copyright 2012 by IATA, ICAO & Haver. Extract from The Airline Business. Second Edition. (p.81), by Doganis, R., 2006, Oxon: Routledge. Extract from World Aviation Yearbook 2013. (p.9), by CAPA, 2013 , World Aviation Yearbook 2013. Copyright 2013 by CAPA APPENDIX