European airline is not a very attractive industry.
We found that the best way to enter the European Airline Industry would be through a low cost , budget airline operating from the UK to Eastern Europe. ...
Charateristics of this market:
- highly competitive market;
- little brand loyalty with customers;
- customers’ decision to buy based mainly on price;
- a successful terrorist attack on a passenger jet would greatly affect demand;
- uncertainty in markets caused by continued violence in Iraq and the Middle East;
- landing slots at major international airports are expensive;
- good flight time are already allocated to the large established airline companies. ...
UNCERTAINTY: Future of airline industry is still uncertain because of the changes in demand, technology, communications
1. ...
After the consideration about the four most important dimensions in an environment we can have a look at specific features:
The industry environment:
- suppliers:
§ airport itself
§ fuel company
§ food company
§ engineers
§ specialist that deal with whole construction of aircraft
§ travel agents
- competitors:
§ low cost airline company
§ other major airline company
§ cars
§ trains
§ internet companies (ticket sales)
- customers:
§ business company (first and business class)
§ leisure customers
§ airmail
§ freight
International economy:
a. ...
ŕ eastern europe is a potentially attractive market because in the next years 10 Eastern european contries will join Europe and the markets will be opened up to trade, commerce, tourism. ...
FINAL CONSIDERATIONS:
There are many different factors to consider when analysing the European Airline Industry. ...
There are many low cost airlines already operating in the European market. ... Reason for considering the Eastern European market are as follows:
- 10 former Eastern Block countries joining the EU;
- new market place for new and established firms;
- intrigning destinations for holiday makers, weekend breakers and active holidays. ... This is why we have chosen to operate as “no frills” airline. ... For example “Go” British Airways, low budget airline was bought over by a larger competitor within the segment.
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