Macroeconomics (Airline Industry) Assignment

Macroeconomics (Airline Industry) Assignment Words: 393

E-ecological factor consists of recycling, the level of pollution and attitudes to the environment. For the airline industry, pollution tends to be very important. Legislation fir the airline consist of employment laws, company law, tax law and their regulation. Redundancy, landing right, health and safety, which are all the airlines, should be considered as a legal factor. Airline industry recovered and it become more attractive for investor. Economical and political factor has always been and continues to be the two major external environmental drivers influencing the airline industry.

A low cost carrier (also known as a no-frills or discount carrier) is an airline that offers generally low fares in exchange for eliminating many traditional passenger services. The model represented by the (LLC) or low cost carrier is not an innovation, some of the LLC are linked to major and traditional airlines companies, but its evolution has quickly become the dominant management model and through the development of the Internet has experienced the most growth.

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Though many airlines offer fares at a reduced rate on one or more of their routes at particular times, the simple act of offering cheap fares does not secretaries make them a LLC. Low cost carrier with the specific aim of operating with a lower cost structure than traditional operators in order to create lower fares. Greater efficiency and cost savings have been achieved in a variety of ways, most notably through increased aircraft and crew utilization aided by the use 1 062 of aircraft operated in a single class with more seats than would be possible with business class.

LLC tend to operate a single type Of aircraft, a strategy that produces economies of scope in aircraft maintenance and flexibility in the use of crew. Savings is achieved by selling tickets directly to customers often through Internet and call centre ticket sales) and therefore by-passing travel agents distribution channels, re-engineered business processes and negotiation to gain reductions in airport charges.

Tourists such as business passengers with a need for frequent scheduling, inter-flight flexibility with differentiation being offered through personal space and comfort on-board, in flight entertainment and free food and alcoholic drinks, frequent flier programmers, free airport lounges and use of major city airports (typically with higher landing charges). All these features raise seat costs.

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