Adapted from Munasinghe
The article provides history of the airline industry which includes the emergence of strategic alliances, budget carriers, competition and collaboration, cultural assessment and finishes off with a SWOT Analysis and perspective of the future of the Star Alliance.
Airline History The airline industry has grown and evolved by leaps and bounds since the early days of the Wright Brothers.
The airline industry took flight and yielded its first signs of competition in the late s with deregulation.
This act caused the slow reduction in the powers of the Civil Aeronautics Board, which up to that point had strong control over pricing, market entry and most other airline functions.
Deregulation in Europe followed similar suit which essentially ended many of the existing constraints on European carriers. As deregulation broke down, many international carriers entered into arrangements with foreign partners to expand their network routes.
This type of arrangement is one of key reasons why the Star Alliance was formed which I will expand on thoroughly later in this article. The Chicago Convention spawned some governance and control across the international marketplace.
Air routes, frequency and fares were all governed by this bilateral agreement. This allowed for airlines the ability to advertise other airlines as their own. The obvious benefit here is to create a larger presence and increase the chances of generating additional sales.
This practice would also become common across the current alliances we see today in the airline industry. Another noteworthy piece if airline history was that of the U.
S Open Skies agreements of This key bilateral air treaty granted KLM and Northwest full anti trust immunity. Its main purpose was to bring about the liberalization of all global air routes. This allowed KLM and Northwest the ability to act as one company with regards to most aspects of their business functions.
This key piece of legislation assisted in the growth and enhancement of business worldwide. Just as quickly the airline industry spiked between the years of 95 and 98 just after the Gulf War.
Yet again another major downturn in the aviation industry was a result of the tragic events of September 11, I will be overlapping some years in the late 90s to discuss the formation of global alliances.
Emergence of Budget Carriers One of the major faults that big airlines were faced with was that of overcapacity. Quite simply, empty seats translate into lost profits. During the late 90s there was a rather large boom in the procurement of new aircraft. Strong demand pushed this trend to extreme limits.
It reached a point where there was just too many aircrafts out there with too few passengers to fulfill maximum capacity. The tail-end of the 90s exposed this critical capacity flaw and begun to negatively affect margins and hurt bottom line profits.
These scaled downed planes focused primarily on low-cost point-to-point travel.Here is the SWOT analysis of Marriott International which is a brand of premium hotels and hospitality chain based out of the USA.
The hotel chain was established in the year in Washington DC by J Williard Marriott and today has close to properties across countries. This SWOT analysis gives a short but concise overview of the Strengths, Weaknesses, Opportunities and Threats of the European Hotels and Restaurants sector.
SWOT Analysis: 1. Strengths: Strong brand name, image and reputation. McDonalds has built up huge brand equity. It is the no 1 fast food company by sales, with more than 31, restaurants serving burgers and fries in almost countries. Disclaimer: This work has been submitted by a student.
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A Collection of Acronyms and Terms Commonly Used in the Tourism Industry Based primarily on the Tourism Glossary published by in the text Passport: An Introduction to . SWOT analysis of Hilton hotel Strengths • Hilton Hotel Corporation (HHC) is a well established organization and industry leader in the hotel, hospitality and gaming industry • HHC is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mix • HHC also possesses solid integration features such as owning the companies that.