Last updated: March 21, 2019
Topic: ArtBooks
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The air hose transit industry started in Europe with KLM the Netherland national air hose which was founded on 7 October 1919, doing it the oldest bearer in the universe and the company is still runing under its original name, although the company stopped runing during the Second World War – apart from the operations in the Dutch Antilles in the Caribbean. The first KLM flight was on 17 May 1920, from Croydon Airport, London to Amsterdam transporting two British journalists and a figure of newspapers.[ 1 ]The European air hose sector has historically been dominated by national flag bearers who together account for over 70 % of civilian rider traffic. These air hoses came up after the Second World War and were state-owned or state-sponsored. Examples include British Airways, Lufthansa, Swiss International Airline, SN Brussels, Alitalia, Iberia, Air France KLM and many others which are still the major air hoses bearer in Europe today. ( Debarshi Datta and Subham L. Chakravarty, 2006 )[ 2 ]We can non speak about the air hose industry without adverting the IATA ( International Air Transport Association ) . IATA is an international trade organic structure, created in 1944 by a group of air hoses. Today, IATA represents some 230 air hoses consisting 93 % of scheduledA international air traffic. The organisation function is besides to represents, leads and serves the air hose industry in general. All the regulations and ordinance in the air hose industry are set by IATA. The chief purpose of IATA is to supply safe and unafraid transit to the riders.[ 3 ]

Over the old ages, the air hose industry has grown from an experimental manner of transit to a major portion of the universe ‘s transit system, transporting an estimated 1.5 billion riders yearly. Airline industry today is confronting multiple troubles and most of the traditional air hoses today are holding losingss. IATA said air hoses Carriers have suffered losingss of $ 50bn over the past 10 old ages, and still confront a series of hazards which are the factors that straight causes these bad public presentations. We have identified those factors in the European air hose industry runing from international fiscal crisis, terrorist act menaces, alternate conveyance manner, foreign competition fuel cost fluctuation to the presence of low cost bearer.

Fuel cost fluctuation

Today air hoses companies face many jobs there are many factors that contribute to these jobs and the unstable fuel cost is one of them. The value of a barrel of oil has a direct impact on airliners within the European air power industry. With the current political differences in Eastern Europe between Ukrainian oil and gas company Naftohaz Ukrainy and Russian gas provider Gazprom over natural gas supplies, legion European states that depend on Russian natural gas transported through Ukraine. The unrest in Nigeria with grapevines onslaughts, kidnapped crude oil company employees and in the Middle East with Iraq war and Iran atomic aspirations, all this influence the oil production in these states therefore the cost of oil is likely to lift every bit is the unstable nature of this resource and industry in general. Harmonizing to the statistics from the General Aviation Bureau, due to the fuel monetary value rush, the cost of fuel has accounted to 31 % of the cost of major concern of air hose companies in the first half of the twelvemonth 2008 from 22 % . The whole air hose industry has afforded extra cost outgo of $ 200 million for the same period. Increases in fuel monetary values affect the air hoses in many ways, foremost the cost of fuel has an obvious and direct impact on the cost of operation, and secondly fuel cost additions have repeatedly triggered economic recessions, which in bend consequence in a significant diminution in demand for air travel and air lading. Fuel monetary value additions have a peculiarly inauspicious impact on air hoses because even in good clip fuel costs constitute about 10 % to 12 % of their operating disbursal. Every penny addition in the monetary value of jet fuel costs the air hose industry $ 180 million a twelvemonth.[ 4 ]In the absence of pricing power, the ability to go through these costs along in the signifier of higher airfares -these additions comes right off the bottom line of these companies.[ 5 ]The air hoses are making everything they can to conserve and cut down their fuel ingestion. With the development of commercial air power, air hoses have insisted upon the most fuel-efficient aircraft possible and have worked with airframe and engine makers to cut down fuel ingestion but still the fuel monetary value is an incontrollable factor that they have to cover with.

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Terrorism menaces

The impact of the terrorist act on the Airline industry is still present few old ages after September 11, 2001. This continues to hold a strong influence on the air travel industry. Some air hoses did non last the fiscal wreckage instantly after 9/11 – most laid off workers, and it seemed that other terrorist secret plans were uncovered or thwarted in an age of security qui vives.[ 6 ]The September 11 bombardment has a really negative consequence on all the air hoses companies due to the fact that many people start to fear for their security, with the concluding consequence of a diminution of the people wish to go by plane and hence air hoses gross revenues. Because of the recession in the air hose industry at that clip many companies have gone belly-up.[ 7 ]The most recent terrorist onslaught in a plane was in Christmas twenty-four hours December 25, 2009, Oumar Farouk Abdulmutallab travelled to Amsterdam, where he boarded Northwest Airlines Flight 253 en path to Detroit, Michigan while making he tried to blow up the plane with and explosive but he was stopped by the riders. This effort shows that the terrorist act menace is still present. Today, there are new security cheques before get oning the latest 1 is the scanner. The others were implement after 9/11.Some of these look into up are really hideous Places and belts off, Laptops out. Hands up Standing in an particularly long security waiting line, go throughing through the metal sensor, Canis familiariss. All liquids, gels and aerosols must be in 100ml or smaller containers. Larger containers that are half-full or toothpaste tubings rolled up are non allowed. All liquids, gels and aerosols must be placed in a individual, quart-size, zip-top, clear plastic bag. Gallon size bags or bags that are non zip-top such as fold-over sandwich bags are non allowed. Each traveller can utilize merely one clear plastic bag.[ 8 ]Many others other limitations make riders even more uncomfortable. All this mix with the fright of a possible hazard of terrorist onslaught in a plane because they have seen what go on before make people change their manner of going. That is one of the grounds why there is a decrease in the flight ticket gross revenues in European states.

Fiscal crisis

The International Air Transport Association ( IATA ) , which represents most of the air hoses worldwide, reported in December 2008 that international air rider traffic fell 4.6 % year-over-year, and merely approximately 74 % of plane seats were sold. International air lading volume fell an unprecedented 22.6 % year-over-year, a mark of the lag in universe trade and plumping consumer disbursement.[ 9 ]This is the first clip in memory that air hoses in virtually every part of the universe have been at the same time hurt by falling ticket gross revenues and lading tonss. The international fiscal crisis make a batch of company went insolvent and the one which did n’t shut cut down their work force to confront multiple troubles. Many people today spend less money for their travel and leisure clip because they earn less and some household even suspend wholly the travels to utilize the money for other intents. Peoples like to conserve money to cover the necessities of life such as nutrient, shelter and household necessities. Europe had been hit by the crisis and 1000000s of individual lost their occupations. There has been a pronounced decrease in concern activities and consumer disbursement, and this affects the air hose industry, as concern travel slows, and discretional disbursement on leisure travel goes down. Companies such as British air passages, Air France KLM, Alitalia and many others are confronting fiscal troubles. With 1000000s euro of losingss since 2008 company like British air passages even ask the employee to work for loose a hebdomad or more than that to salvage the company.

Foreign competition

Airlines is a really competitory industry most of the states around the universe have their national air hose company and apart from that there are private owned Airlines all over the universe. Air conveyance within the EU has been liberalised through three consecutive bundles of directives and ordinances. The effects of these different stairss taken have been to widen the rule of the “ individual market ” to air conveyance within the EU. The liberalization procedure of the European air hose market ( unfastened skies ) has led to stronger competition with an addition in the supply of air conveyance and lower duties, particularly on paths where air hoses vie. ( J.F.Pons, December 1999 )[ 10 ]apart from this, there are others understanding that European states had signed with Asian, African and American states to let their companies to run in Europe. All these understandings make the European market the toughest in term of competition. The rivals of European companies are Singapore Airlines, Emirates, American Airline, Continental and others. But the most aggressive rivals come from the Middle Eastern air hose such as Etihad Airways and Qatar Airways these two companies are non doing any net income since their creative activity there are granted by their several authorities therefore their speedy enlargement. Qatar Airways merely operate with more 82 planes and has 220 planes in order for more than $ 40 billion worth and Etihad air passages operate with 56 planes and has 106 planes in order the company is be aftering to duplicate the figure of metropoliss Etihad services to 100 and to wing 25million riders by 2020.[ 11 ]These ends will be supported by Etihad ‘s $ 43 billion shopping fling at the UK ‘s Farnborough Air Show at which it purchased 55 Airbus aircraft and 45 aircraft from Boeing.[ 12 ]This show that the competition in the European market will be more hard with clip to come hence the European air hoses bearer must be ready to confront it.

Alternate conveyance manner

The development of engineering today brought assorted ways of traveling and ameliorates the bing transit manner. There are many alternate manner of going without taking a plane such as coach, train, boat and many others. The edifice of new substructure had reduced the travel distance. Today the chief alternate transit manner that we can see as a possible concurrent is the high velocity train with the buildings of the tunnel under Manche Sea to associate Britain with mainland Europe. Eurostar ( high velocity train ) operate this path associating London to Paris and Brussels.[ 13 ]The clip that it takes to associate London to Brussels in Belgium with the high velocity train is merely 1hour 51 proceedingss and it is two times cheaper than the flight ticket. With a multilingual staff, their purpose is to offer incorporate high-velocity rail travel between major European metropoliss and to vie with air hoses on promptness, environment, pricing and velocity. A high-velocity rail web a cross seven states in Europe will shortly vie with air hoses as the most convenient manner to go. The intercity web will intend that a rider will be able to skip on a train traveling from London to Frankfurt in merely five hours for every bit small as ?69. Passengers will besides be able to go between France, Germany, the Netherlands, Belgium, Switzerland and Austria without go forthing the land in the twelvemonth 2007 15 1000000s individual usage this train and they are be aftering to hold more than 25 million riders by 2010. All this degree we can see that the high velocity trains are serious concurrent because they are aiming air hose riders as their possible hereafter clients.[ 14 ]

Presence of Low Cost Carrier ( LCC )

Low cost bearer are those air hoses which offer low menus for all the finishs where they are runing and charge for nutrient, precedence embarkation, place allocating, and luggage ‘s. This type of company lowers their operating cost. With merely a individual category and more seats in the plane and a multi undertaking for illustration flight attenders besides cleaning the aircraft or working as gate agents, simplified paths, stressing point-to-point theodolite alternatively of transportations at hubs. This aid the company to well cut down it operation cost and hence sells it winging ticket at a low monetary value. The major low cost bearers in Europe are Ryanair, Easy jet, Germanwing and Tulfly. On March 2010, The European Low Fares Airline Association ( ELFAA ) announced that last twelvemonth its members carried 162.5 million riders and accounting for over 35 % of scheduled intra-European Air traffic, stand foring an 8.7 % addition on the old twelvemonth.[ 15 ]. A Low cost Carrier like Ryanair make a net income of a‚¬105 million at the twelvemonth ended 2009 comparison to British Airways a traditional air hose bearer which make a loss of ?358 million at the twelvemonth ended 2009.[ 16 ]We can see that the low cost bearers are turning really fast and they have a control over their operating cost. That is why they are the lone Airlines which make benefits today although the air hose industry is in crisis. Low cost bearers ‘ menus are one of the grounds why traditional air hoses are confronting troubles today and these LCC are hence pulling the rider of the traditional bearer.

Research frame work

Independent variables dependent variable

Fuel cost fluctuation

Terrorism menaces

Fiscal crisis

Foreign competition

Alternate conveyance manner

Presence of Low Cost Carrier

Airline Industry public presentation in Europe

Research aims

To analyze how fuel cost fluctuation affect the air hose industry public presentation in Europe

To find the consequence of the terrorist act menaces on the air hose industry public presentation in Europe

To study the impact of fiscal crisis on the air hose industry public presentation in Europe

To analyze how the foreign competition influence the air hose industry public presentation in Europe

To place the alternate conveyance manner and his consequence on the air hose industry public presentation in Europe

To understand how presence of low cost bearer impacts the air hose industry public presentation in Europe

Research methodological analysis

1-Target respondent: our mark respondent in this research will be the direction people of the Airlines companies and in certain step the clients. We choose these individuals because they are the one straight concern by our research and they can give their feedback which is what we are looking at.

2- Types of informations

Secondary informations: are information from secondary beginnings, it is non straight compiled by the analyst and could include published or unpublished work based on research that relies on primary beginnings of any stuff other than primary beginnings used to fix a written work. Here we have to demo the beginnings of the secondary informations used in our research we exploit ; Websites, Journals and books.

Primary informations: Are information that has been collected at first manus. Theses specifics information ‘s are collected by the individual who is making the research. Primary informations aggregation involves measuring of some kind, whether by taking readings off instruments, chalk outing, numeration, or carry oning interviews ( utilizing questionnaires ) . To interview our respondent, we will utilize the personal interview for the direction people of the Airlines companies because they will be few and to hold an accurate reply. For the clients, we will be utilizing the telephone interview because it is the 1 that we will hold a direct entree to the clients and therefore they will be less opportunity of holding a misguided reply from the respondent. Our research here does n’t utilize primary informations but this is the questionnaire that can be used when questioning the individuals involves ( respondent ) .

3- Measurement



The industry public presentation

-Passengers lading


Fuel cost

-World fuel monetary value


-Number of incident and topographic points

Fiscal crisis

-Economic informations GDP

Foreign competition

-Number of foreign Airlines

Alternate transit

-Number and types of different alternate transit

Low cost bearer

-Number of Low cost bearer

Time graduated table:

Gantt chart



Moth 2

Moth 3













Writing of proposal

Submission of proposal

Proposal defence

Data aggregation

Organization of informations

Analysis of informations

Writing of thesis

Submission of thesis