The Global Airline Industry.docx - The Global Airline...

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The Global Airline Industry 1The Global Airline IndustryByCourse NameProfessor’s NameUniversityCity and StateDate
The Global Airline Industry 2Table of ContentsTHE GLOBAL AIRLINE INDUSTRY.......................................................................................................3Trends in the industry..........................................................................................................................3Figure 1.1............................................................................................................................................5Figure 1.2............................................................................................................................................6The International Institutional and Regulatory Environment...................................................................7Strategies used by passenger airlines.......................................................................................................8Conclusion.............................................................................................................................................10References.............................................................................................................................................12
The Global Airline Industry 3THE GLOBAL AIRLINE INDUSTRYThe creation of the global industry has heavily relied on the existence and development of the global airline industry. Figuratively, the global economy would still be at its infancy if not the creation and development of the industry. The industry itself is an integral economic force, due to its own operations and the effects it creates on other industries such as tourism, trade and manufacturing. In the world, very few industries can compare to the financial flow that goes on in the industry as well as the attention it receives from the media, the legislature, and also the huge number of individuals who use planes; in fact every individual who have used the industry has a recollection of the experience, either positive or negative. The major revolution in the use of airline was realized in the 1950s with the introduction of the jet engines, and in the 1970s withthe coining of the concept jumbo jets (Belobaba, Odoni and Barnhart, 2016). However, despite the technological advancements, the industry was under strict scrutiny globally, when in turn promoted the progress of advances and governmental policies rather than profitability and effortsto create competition. The beginning of the economic deregulations of the airlines began in the United States in 1978, created a vacuum which was occupied by issues such as cost efficiency, operational profitability and competition between the providers of the services (Belobaba, Odoni and Barnhart, 2016). The terms airline deregulation and liberalization have been used interchangeably and have spread worldwide, to all the areas with industrialization. The spread has promoted the growth of each country’s domestic airlines and more crucially, the ever-growing rivalry amid the intercontinental airline industry. Trends in the industryCurrently, there are more than one thousand four hundred commercial airlines consisting of more than 25000 commercial airplanes and serving over 3800 airports. At the end of 2013
The Global Airline Industry 4financial year, more than 36 million commercial flights had been flown transporting roughly three billion passengers (Belobaba, Odoni and Barnhart, 2016). Over the last 30 years, the rate ofgrowth of the global airline industry has grown at a percentage of five with a significant variationcaused by the different economic conditions and the different rates at which a country’s individual economic growth is progressing. Since the commercialization of the industry, there has been a recorded doubling of growth in the industry as compared to the gross domestic

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