'The Airline Industry Pre and Post 9/11\r'

'Analyze the attractiveness of the airway attention pre 9/1 1 . How attractive was the industry forrader 9/11? Was it profitable? Was there out improver? Was there strong competition or non? If so, in what sectors? PESTEL Analysis of the Airline assiduity Pre 9/1 1 Political political relation lose for national carriers Oohnson, Gerry. 2011, pg51) Security Controls Oohnson, Gerry. 2011, pg51) Investment support Restrictions on migration Oohnson, Gerry. 2011, pg51) Deregulations (try to cut grim airf argon prices) Economic National growth rates Oohnson, Gerry. 2011, pg51)Fuel prices Oohnson, Gerry. 2011, pg51) High damages associated with the Full swear out Carrier business humorl of markets Increasing creation trade and investment Social Rise in travel by elderly Student outside(a) study exchanges Changing life styles make up in the enactment of educated people Globalization proficient Fuel-efficient engines and airframes Security check technologies Teleconferencing for business consolidation Alternative fuels Environmental Air pollution controls racquet pollution controls Energy consumption controls Land for growing airports Legal Employee work hoursLiberalization Restrictions on mergers Preferential airport rights for some carriers Porters five forces analysis for pre 9/1 1 Threat of Entry High regulations dandy intensive Requires high level of experience and association It has a high obstruction entry Monopoly in some cities airports The Threat of Substitutes Busses, ships, rail industry In Europe, Russia rail is the prefer transportation mode In US rail and road are the mode of transportation for goods Prices are regularly low analyze to airfares in Europe for within Europe and Russia Ships are being used or transportation of goods in bulk to continents But for individual transportation for coarse distances mostly airlines are preferred. The Power of Buyers Almost 50% ontogenesis within a decade, due to increase in the number of retirees. Also rise in the world GDP. Increasing number of airline companies gives more(prenominal) choice to select from to the buyers. Customer loyalty extremely depended on airfares. Price sensitive. So bargaining office of the buyer is high. Technological innovations give advantages to business travelers (skype, gathering calls… etc) The Power of Suppliers Pilots unions, â€Å"there is no good alternate(a) to a nearly-trained pilot in the cockpit”.The supply is in general being done by Boeing and Airbus, Aramco, Gazprom All of the suppliers look at high power. (Fuel, maintenance, labor). Competitive Rivalry Low shore cost (1-2% net profit) Increase in the number of airlines High costs High exit barrier As per the case study â€Å"analysts were predicting that the US airline industry world lose some $. 5bn because of the slowing economy combined with a large redress in business travel. ” So the decrease and losings were already happening, due to ec hnological, mismanagement and economic reasons. 9/1 1 may have granted good reasons for mistakes. 2 Analyze the attractiveness ring mail The decrease hit the bottom with the terrorist attacks. People preferred other ways to travel.PESTEL Analysis of the Airline Industry Post 9/1 1 presidency support for national carriers (bailout money $4bn) Tax moisten for the next five years (national carriers) Security Controls increase (3 hours early check in) Lay offs Cost increase due to aegis increase Suppliers suppliers were affected presumable increase in the demand for metal detectors and security items Increase in he insurance cost Increase in the airfare but after 2007 airlines are raising against each other, prices are going down Fear against flights No trust to security weft towards road, rail, or teleconferencing. Need for advanced security check, unafraid(p) stronger technologies including navigational equipment. Teleconferencing for business Stronger rules over employees Tigh ter regulations Increase in the consumer rights and protection* 3. How might airlines better stick out for disruptive events such as 9/11?They could nave done scenario planning and train the employees according to the shoot case scenario. Shell was the only company during the crisis which survived because they had the scenario beforehand and when they started to feel the crisis they reacted before it reached at the door. Airline industry rat do the same thing, and train their employees. Government can do trainings at the school or public places for worst case scenarios. Airplane suppliers can produce safer doors for the cockpit. And security companies should not Just direct normal people they should have people from the forces or police departments at the airports who are well trained.http://dollarsandsense.org/archives/2002/0502ward.htmlhttp://www.citethisforme.com/topic-ideas/business-marketing/Qantas%20management-9357129\r\n'