Industry Analysis & Industry Trends
The Global Airlines industry has taken off over the past five years. Airlines have exhibited positive growth since 2010. As unemployment has declined in developed economies and disposable income has risen in emerging economies, vacation and discretionary travel spending has increased. In addition, the number of business travelers, who usually pay a premium for tickets, has increased over the period as corporate profit has risen, which has bolstered businesses' travel budgets. Over the five years to 2021, passenger numbers are expected to rise as income levels increase worldwide and business spending ramps up. Travelers from fast-growing emerging economies will especially benefit the industry... read more
Starting a New Business
The industry experiences high barriers to entry. 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. Purchasing aircraft may cost millions of dollars, which may be hard to secure, given the competitive nature of the industry. Complying with government requirements is costly and timely, making it harder to enter the industry. Skilled labor may be hard to come by in times of pilot shortage, considering the extensive training required to be able to work in the industry.
Strict government regulations, licensing and reporting requirements also restrict the amount of new participants into this industry... read more