AIR TRANSPORTATION OVERVIEW

At one point in time, the bulk of the global airline industry was heavily regulated meaning governments had strict control of the industry in terms of air fares, routes and market entry of new airlines.

As per the International Air Transport Association (IATA) liberalization allows for expansion into new markets, diversification into new products, specialization in niche products, and market exit for air carriers not able to succeed in specific competitive markets.

Government controls like entry and price restrictions for air carriers are removed allowing airlines to serve any given route and freely compete with other carriers.

The air traffic control system would be updated to increase efficiency of the national air transport system and decrease delays at hub airport facilities throughout the country.

is perhaps the most high profile industry in the world but it is also considered one of the most neglected in terms of investment.

The top three costs for most airlines

When the economy is doing well, airlines tend to profit but when the economy is not doing well, airlines tend to lose profit often being the first and hardest hit industry in turbulent times

PART OF FAILURES IN AIRLINE BUSINESS PLANNING

•is a common basis for failure. Existing airlines rarely have enough capital to keep up with high operational costs and start-up airlines rarely have enough capital to either launch the company or remain in business.

PART OF FAILURES IN AIRLINE BUSINESS PLANNING

•is a major negative factor impacting airlines world-wide. The business platforms of legacy carriers are often based on old regulatory environments designed to operate in a specific type of environment that no longer exists. Unfortunately, because the legacy carrier is often too established, it has difficulty adjusting to changing environments.

•leadership are negative contributors when an airline seeks to be successful. Wrong money is invested by parties that do not understand the nature of the operation and as a result of having an active voice in the decision making process, ultimately lead to the demise of an organization.