![]() ![]() Industry profitability: subpar to above average fuel and maintenance costs, a growing senior staff division, unionisation of employees and competitive price wars are margins concerns. Scale Economies: the industry contains several very large players and multiple medium to small playersĬapacity utilisation: high rates required to achieve suitable profitability Product Characteristics: diverse customers can receive top end service through to low cost travel and ongoing international hook-ups. Technology/Innovation: R & D essential in creating efficiencies and reducing expenses with turn-around times, fuel costs, reservations etc Learning curve effects: not a factor in this industryĮase of exit/entry: aircraft, terminals, infrastructure and staffing are expensive ![]() No mention of airlines employing in-house catering. Sabre Holdings and Galileo International connect airlines with travel agents. Expected growth in business customersĭegree of vertical integration: mixed some have low cost reservation systems, alliances with regional and international airlines as well as hotels. Legacy carriers developing low-cost offshootsĬustomers: 661 million domestic passengers. Scope of competitive rivalry: primarily major carriers (revenue more than $1 billion). Number of companies in industry: 43 mainline carriers and 79 regional airlines Stage in life cycle: mature for domestic, growth for international Market growth rate: Domestic 2.9%, International 5.0% (forecasted to 2017) ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |