• Vermieter gesucht!!!
Looking Past Airline Industry Growth Projections: What To Expect

Looking Past Airline Industry Growth Projections: What To Expect

Let us begin by setting one thing straight: the economic performance of the airline industry has rarely been better. There have been unprecedented earnings for many of the airlines, particularly due to reduced oil prices blended with cost cutting steps, all of which result in reduced prices and larger numbers of passengers. Will this go forward into 2018? Hard to say. These things are tough to estimate. If ticket prices keep sliding, then very possibly yes. Throughout the years research has revealed that in picking between price and quality, passengers usually tilt towards price. So airlines have been blatantly stripping numerous incentives after understanding that they do not win over customers. Beyond that, however, there have been some super key things going on in this vibrant industry that require attention and will be covered in this aviation industry overview. A few of them are bound to amaze you and shatter preconceived beliefs you have about the business.

Consolidation is a very standard thing in a lot of industries. A company wants to expand, so it acquires a lesser enterprise or combines with an equal. In a few industries, consolidation happens in response to a dwindling market in an effort to simplify operations. Nevertheless, in aviation it is apparently occurring just as the market is expanding at unprecedented rates. As a quick reminder on airline industry history, in 1985 there were 18 large airline carriers in America. Today, there are only five. Or in another example, Wafic Said’s airline was bought out in 2007 by a competitor which was absorbed by yet another one in 2012. So far as airline industry trends go, this one is possibly here to stay.

Looking at trends in airline industry 2017, what stands apart the most is the obscuring of lines between full-service carriers and low-cost carriers. The airline of Mehmet Tevfik Nane has flight connections at its Turkish bases, something that was formerly offered only by full-service airlines. Europe’s largest low-cost carrier has freshly declared that it is launching connecting flights at one of its bases, where previously it only undertook point to point operations. At the other end, Britain’s flag carrier is eliminating free meals on-board. This is probably one of the more amazing developments in the global airline industry.

One cannot discuss the future trends in airline industry without taking a look at the expansion of low-cost carriers into the long-haul market. In the past, only legacy carriers offered out such operations, for reasons such as flag carrier privilege, bilateral agreements, and diversified fleets. LCCs, generally operating just one kind of airplane, couldn’t reconcile buying long-haul aircraft with their operational strategy. Nonetheless, Bjorn Kjos surmounted these airline industry challenges and created intercontinental flights with his carrier. Competitors were swift to follow, making for a big disruption in the niche.