- All Free Papers and Essays for All Students

The Airline Industry

Autor:   •  January 16, 2013  •  Essay  •  517 Words (3 Pages)  •  978 Views

Page 1 of 3

The Euroair, which is the largest European commercial aviation company, has some problems with its customers.

The complaints are always the same things and the company must learn to develop.

The airline industry

The airline industry is a very large area for travel and tourism, rafting billion passengers annually. One in four flights are international. Many airlines, including Euroair has partnered with the International Air Transport Association (IATA). Approximately 250 members of IATA are responsible for 95% of revenues.

The cost of a Boeing 747 are high (around 150 million) companies have high fixed costs and have to work hard to maintain the percentage occupancy of its planes high (at 70% of capacity).

The marginal cost of carrying a passenger over the aircraft is very small. Consequently, the airline spend their efforts trying to improve factors such as brand positioning and promotions, loyalty programs and more. The major concerns are the costs in production / operations, which reduce the ability to compete on price. The division of operating costs are described in the chart below:

The company began operations in the 90s and is reputed to be safety-oriented and technically reliable. It has a stable work force, resulting from the union of the directors of the company. Rival Singapore Airlines has a culture of excellence in service, unlike Euroair who specializes in business and freight transport.

Fair Treatment for air passengers

The complaints department of transport on air transport has increased by 7% from 97 to 98. The biggest complaints are causing flight delays and chaos disrupts people's lives. Many groups adversely affected by delays unite to protest and request compensation for the inconvenience caused.




Download as:   txt (3.3 Kb)   pdf (69.4 Kb)   docx (11.3 Kb)  
Continue for 2 more pages »