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The global Airline industry

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The global Airline industry
The Global Airline Industry

Student: Stefano Zanini

Student code: 21233218

Module code: AT502

Module Co-ordinator: George Georgiou

Essay written in:

The airline industry consists of transportation services via flights for passengers or freight. Airlines

may lease or own an aircraft to provide these services, in the meantime they may combine

the services with that of another airline for mutual benefits. Airlines in the industry are typically

identified by a license issued to the company by a government aviation committee, or by an air

operating certificate.

The airline industry consists of a variety of different services, there are airlines operating singular

aircraft utilized to deliver cargo or mail and other full-service airlines that operate internationally

with many different aircrafts. Airlines are classified by the service they offer, they could be: intra-

continental, domestic, regional, intercontinental, or international. They may be utilized as charters

or scheduled services.

Airlines are highly leveraged, and as such they must buy or lease new aircrafts and engines on a

regular basis, as well as settle on decisions for their fleet, keeping in mind the goal of meeting

market demand while operating a fleet that remains economical for the industry.

Low passenger demand, increase in fuel price, and a slowdown in the global economy are the points that characterize the which global airline industry in this days. In order to solve those problems, companies have decided to improve profitability in markets where they already have a strong presence. Other problems come from the slowdown in global economy, principally caused by the Eurozone crisis, in fact because of that, strategic and financial investors have become doubting about investments. This caused an extremely increase in merge and acquisition activity between airlines. In fact


References: -Boeing, (2012) World Air Cargo Forecast 2012-2013 Executive Summary [online] Boeing.com Available from: http://www.boeing.com/boeing/commercial/cargo/01_01.page? [Accessed: 4 May 2013]. -Boeing, (2012) World Air Cargo Forecast 2012-2013 Executive Summary – World Air Cargo Traffic growth Detail [online] Boeing.com Available from:http://www.boeing.com/boeing/commercial/cargo/01_03.page? [Accessed: 4 May 2013]. -Russel, E. (2013) Analysis: Mergers signal new dawn for US airline industry [online] Flightglobal.com Available from:http://pro.flightglobal.com/news/articles/analysis-mergers-signal-new-dawn-for-us-airline-industry-383473/ [Accessed: 4 May 2013]. -Boeing, (2012) Current Market outlook 2012-2031 [online] Boeing.com Available from:http://www.boeing.com/boeing/commercial/cmo/index.page [Accessed: 4 May 2013]. -Boeing, (2012) Business Environment [online] Boeing.com Available from:http://www.boeing.com/boeing/commercial/cmo/business_environment.page [Accessed: 5 May 2013]. -BBC, (2012) Spanair collapses, stranding 20,000 people [online] bbc.co.uk Available from:http://www.bbc.co.uk/news/business-16787761 [Accessed: 5 May 2013] -Soares, I. (2013) Europe 's airline industry on 'knife edge, ' says IATA boss [online] Cnn.com Available from:http://edition.cnn.com/2013/03/21/business/europes-airline-industry-mpe/index.html?iref=allsearch [Accessed: 5 May 2013] -BBC, (2012) Iata almost doubles loss forecast for European airlines [online] Bbc.co.uk Available from:http://www.bbc.co.uk/news/business-18391523 [Accessed: 9 May 2013] -BBC, (2013) American Airlines and US Airways merger approved [online] Bbc.co.uk Available from:http://www.bbc.co.uk/news/business-21961393 [Accessed: 11 May 2013] -Chariss, J (2011) Delta Air Lines reports $158 million 4th-quarter profit [online] Travel.usatoday.com Available from: http://travel.usatoday.com/flights/2011-01-18-delta-air-lines-profit_N.htm [Accessed: 12 May 2013]
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