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    Introduction To The Airline Industry


    Aviation Industry is one of the fastest growing industry in the world and is effectively being used globally as a prime and a premium mode of transportation. The following report is based on introduction to this industry and covers demonstration of understanding as well as application of the aviation industry (Vasigh, 2017). It also covers explanation and analysis of all the factors influencing development of aviation industry and inter-relationships among commercial and operational areas of a commercial airline.

    TASK 1

    Understanding and Application of Aviation Industry

    Airline Industry is a global sector including several operations and functions performed by airline companies. It is an effective aspect which is essential to be understood in order to appropriately analyse further application (Lumpé, 2016).

    Key Players:

    Within the airline industry, there are various operations that are being held within the sector such as civil aviation, air transport, general as well as military aviation, etc. Within the United Kingdom, there are various companies who are associated with aviation industry recently.


    (Source: Number of enterprises in the air transport industry in the United Kingdom from 2008 to 2016, 2018)

    However, there are just a few airline companies within the market which are considered to be quite effective in terms of profitability, productivity and preference by the customers (Wagner and Walton, 2016). These players are British Airways, Ryanair, easyJet, etc. These airlines have millions of customers associate with them daily and appropriately work towards effectively enhance the services provided to customers.

    Regulatory Frameworks:

    Each industry is associated with various regulatory frameworks which enhance the scope of its organisations in receiving appropriate and constant government support. There are various regulations that are required to be abided by the airline companies which are mentioned below:

    • Civil Aviation Act, 1982:This act effectively defines all the regulations that are essential to be considered by aviation industry organisation. It covers the overall administration and laws that bind all the operations within the industry. For instance, it covers laws regarding licenses of carriages, passenger safety, laws regarding aircraft nuisance, etc. (Civil Aviation Act 1982,). Moreover, the act lays down accounts for penalty and serious punishment as well.
    • Civil Aviation (Provision of Information to Passengers) Regulations 2006:Under this act, aviation organisation are required to provide their customers with their right to be informed. They must give appropriate, authentic as well as effective information to their passengers regarding their flight schedules, condition of aircraft, pricing rates, etc.

    Factors Influencing Industry's Development

    There are various factors which are associated with development of aviation industry such as political factors, competition as well as terrorism, war and disease outbreaks. All these factors influence and impact the aviation business organisation and are essential for these companies to realise in order to conduct their operations effectively.

    TASK 2

    Factors Influencing The Development Of Aviation Industry

    There are various factors which influences the development of aviation industry in getting the desired growth and profit. These factors can affect the airlines such as British Airways in accomplishing their goals and objectives. Some of these factors are discussed below:

    Political factors: These can affect the development of British airlines as the policies of the government regulates and control the prices of the services provided by the aviation firms. Also the policies associated with tax, international trade etc. can effect the productivity of the firms due to the transporting the passengers from one country to another. Firms needs to determine such laws and policies so that the affect can be reduced or minimised.

    Competition: Due to the growth of aviation industry, competition has also increased as many major players are giving tough competition to the British airlines. The Deregulation Act of 1978 has all the limitations in the fare prices, airline routes etc. due to which several commercial airline companies started the business in the industry and pushing the competition more higher (Ä°LARSLAN, VURUR and BIYIKLI, 2014). Also low fares is the major problem for the airline industry as it increases the operational costs.

    War, Terrorism, disease outbreaks: These also effects the industry as these can impact the travelling behaviour of the passengers due to the danger involved. This will leads to the reduced performance and profitability of the firms which can restrict them in development and growth (Rodrigues, Cusick and Cusick, 2012). If the country in which the airlines are performing their operations is free from these issues then it will positively impact the development of the industry in that nation.

    Inter-relationships Among Operational And Commercial Areas

    Commercial areas of airlines includes the schedule, flying regular routes, Types of class in which people travels. Whereas operational areas includes the areas in which the airlines are providing their services such as integration with crew, maintenance planning etc. These both commercial and operational areas are interrelated which is also beneficial for the effective running of airlines (Rai, 2012). For example: When people chooses the business class, then the services provided to them such as food, accommodation etc. are of business class i.e. high quality based. Whereas the people who chooses the economic class, then the services are provided accordingly which is affordable for such people. Also the commercial airlines such as British airways market or promotes their services among the people based on their economic conditions and the trends so that the people can take the services in proper manner according to their conditions or situations. If the operational and commercial areas work closely with each other then they can provide effective and better services to the people wOnline Business Economics Assignment Helphich will enhance the customer satisfaction. Through this the performance and productivity of the airlines firm can improve which will also strengthen the aviation industry in getting the desired growth and development.

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    It has been concluded from the above report that the firms needs to determine the regulatory frameworks, understanding and application of the aviation industry, major players which can influence the development of aviation industry. Also there are various factors which can impact the development of aviation industry such as Political, Competition, War, Terrorism, disease outbreaks etc. The operational and commercial areas of airlines should coordinate with each other for serving the customers in better way.


    • Ä°LARSLAN, K., VURUR, S.N. and BIYIKLI, F., 2014. An Empirical study for investigation of the effects of strategic alliances in the Civil Aviation sector: THY (Turkish Airlines) case. Mediterranean Journal of Social Sciences. 5(22). p.102.
    • Lumpé, M.P., 2016. Leadership and organization in the aviation industry. Routledge.
    • Rai, A.K., 2012. Customer relationship management: Concepts and cases. PHI Learning Pvt. Ltd..
    • Rodrigues, C.C., Cusick, S.K. and Cusick, S., 2012. Commercial aviation safety. Columbus, OH: McGraw-Hill.
    • Vasigh, B., 2017. Introduction to air transport economics: from theory to applications. Routledge.
    • Wagner, S.M. and Walton, R.O., 2016. Additive manufacturing’s impact and future in the aviation industry. Production Planning & Control. 27(13). pp.1124-1130.

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