Industry Analysis & Industry Trends
International airlines felt the full effect of the recession, with revenue plummeting as a result of increasingly low demand and high crude oil prices. However, the industry is expected to make a strong recovery over the next five years, as consumer sentiment improves and the rate of travel among international visitors rises. Additionally, the adoption of open skies agreements will positively affect travel between the United States and Europe, with the removal of borders and restrictions resulting in growth... purchase to read more
Industry Report - Starting a New Business Chapter
Costs to purchase specialist machinery, hangar and other airfield space, skilled labor and to satisfy stringent safety requirements are very high and a significant barrier to industry entry. Moreover, having a network alliance, a wide network of industry contacts, a proven safety record and the demonstrated ability to deliver projects on time and on budget are essential. As such, new entrants could struggle to win business even after massive initial capital outlays. Existing major players can use economies of scale to win business by consistently undercutting smaller players on price and speed of delivery (which ultimately improves their industry reputation). It is also important to note that products offered by airlines are highly perishable... purchase to read more