This 10 page paper looks at how low cost airlines can and have influences the strategies of the entire airline industry. The paper is a proposal for a dissertation with an outline of methodology and a lengthy literature review that shows the student how this is seen in both he US and the EU and may be applied with primary research. The bibliography cites 8 sources.
Name of Research Paper File: TS14_TElowair.rtf
Unformatted Sample Text from the Research Paper:
caused two airplanes to crash into the World Trade Centre and another into the Pentagon. This has changed the airline industry, increased security has increased costs, and the confidence in
the safety was adversely affected. In the industry since that time, bankruptcies have been seen with United Airlines, Air Canada and Swiss Air. Other companies have been and still
are struggling, Cathy Pacific issued profits warnings in 2002 and companies such as British Airways and Singapore Airlines have seen drastic cutbacks. This has increased the level of competition in
an industry that has traditionally be a low profit industry, profit amounts may be high, they make up only a small percentage of the revenue due to high overheads and
inflexible operations. This means strategy is very important in order to keep reduce the proportion of overheads and create a profit. Therefore influences in strategy are important to understand and
with a decrease in demand that has not yet fully recovered and rising costs it is important to asses the influences that are present. One sector in the airline
industry appears to be outperforming all of the others. This is the low cost airlines and this is projected by some to be the dominant sector in the next decade,
others are less optimistic but still see this is the largest growth sector and as 83% of air travel in the US market is currently passenger travel and this is
also the growth are for the low cost airlines this appears to be a important influence within the industry (Euromonitor, 2004). It is against this background that we will
seek to see how low cost airlines can seek to influence the airlines of the world. 2. Methodology To undertake this we will look at both secondary and primary data.