Macroeconomics, Airline Industry Essay

Economical can be one of the major factors for the airline industry. Due to the rate of war and terrorist event, the growth rate of economy melodramatic slowdown, capacity demand, which gains the low yield to the airline industry. Moreover, oil prices increase also affect their profits. The social sector, which are strongly from employment perspective and safety.The technology in airline industry is fast moving, however its very wooly. Alliance gives the opportunity to the major airline to domiciliate customer global route coverage. ecologic factor rests of recycling, the level of pollution and attitudes to the environment. For the airline industry, pollution pitchs to be very important.Legislation fior 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 governmental factor has always been and continues to be the two major external environmental drivers influencing the airline industry.Read moreEssay on Airline IndustryA low cost carrier (also known as a no-frills or discount carrier) is an airline that offers generally low fares in exchange for eliminating umteen traditional passenger services. The model represented by the (LCC) or low cost carrier is not an innovation, some of the LCC are linked to major and traditional airlines companies, but its evolution has quickly become the controlling management model and through the development of the Internet has experienced the most growth.Though many airlines offer fares at a reduced rate on one or more of their routes at concomitant times, the simple act of offering cheap fares does not necessarily make them a LCC. 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 cos t savings have been achieved in a variety of ways, most notably through increased aircraft and crew utilization aided by the exercising of aircraft operated in a single class with more endues than would be possible with business class. LCC tend to operate a single type of aircraft, a strategy that produces economies of scope in aircraft maintenance and flexibleness in the use of crew. Savings is achieved by selling tickets directly to customers (often through Internet and call effect 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 in-person space and comfort on-board, in flight entertainment and free food and alcoholic drinks, frequent aviator programmes, free airport lounges and use of major city airports (typically with hig her landing charges). All these features raise seat costs.