Pages 2 (502 words)
It facilitates global trade, economic growth, tourism and international investment and is thus central to the globalization occurring in many other industries. It is basically the action of travelling in air…
There are several of substitutes to air travel, particularly over short distances. These include taking other forms of transport. Similarly, there is strong rivalry among different airlines within the industry. For instance, in the pre-deregulation era when prices charged was mandated by worldwide aviation board, airlines competed majorly on aspects such as service, in-flight movies, and meals, etc. However in the post-de-regulation era, this competition has taken on the form the form of pricing where individual airline company are counter checking daily prices they offer ( Schmid, 2011). These facts have attributed to more customer power in the industry. Most notably, the airline industry requires huge capital investment. Basing on these facts, entry and existing become very costly. When you enter, there are a lot of regulations, and the initial capital is also very high. On the other hand, when airlines have to exit the sector, they require writing down and absorb several losses. All these features make the airline industry cede authority to the consumers and thus, the power of buyers is moderate to high. Despite all, there is power of the supplier as there are only two major manufacturers of large commercial aircraft.
In the case of a major accident, the structures of within the industry always tend to change. The airline industry is likely to undergo a technological revolution that will make air travel even safer. Normally, key aspects of the change may witness heavy investments from various industry players (Cento, 2009). Leadership within the industry also changes to help reform the industry. The assumption always is that leadership had failed prior to the accident and as such, change in leadership may help bring normalcy. Coupled with technological advancements, undoubtedly this makes air travel a pleasurable experience and a risk-free— both for the crew and ...