Airline Industry

The Reasons behind Growth and Economic Factors within the Airline Industry



The Reasons behind Growth and Economic Factors within the Airline Industry (Menon, 1999,, 18).

The aviation industry is sensitive to a number of external economic factors. In addition, the industry is impacted by the cross-border activity, except for the internal market in the world because it also affected other parts of the economy and tax policies (within and outside the target country), issues such as wage inequality and the positive and negative externalities have a way to change operations in the sector.

Elasticity of supply and demand in the aviation industry may vary depending on the structure of industry effects for airlines. After the new and emerging industries such as aviation evolved, they developed perfections in price elasticity of supply and demand. The number of companies, job change, set the stage for the country's rapid economic growth in the nineties largely to markets in countries affected by natural demand for the goods. Many people have a renewed need for aviation services in India, was due to the internationalization of their business. sector, the demand for raw materials has led to rapid growth and a growing number of companies. (Keller & Butler, 2000), however, the U.S. has traditionally developed countries, as demand has exceeded supply. As a result, airline tickets prices are much lower than it should go. In addition, it resulted in the reduced ability to cope with decreasing demand for air service. In fact, this service working to reduce labor costs low to meet the demand. This makes it very difficult for new entrants to the sector and the success of significantly adds good. A large positive externalities by examining the aviation industry should be taken into account the positive and negative externalities (Dog anis 2002), the effect of impact on the economy. Many experts have argued that many effects on the aviation sector, the country's GDP. For example, if a company uses a significant percentage of unemployed in their countries. This means that the aviation sector to reduce unemployment rates. At the same time, in general, encourages tourism and hospitality industry. Aviation industry has the ability to expose a country to new markets. The overall effect of this improvement in the number and quality of the negative externalities of Commerce Business Productivity should be noted that increased investment in growth sectors of the economy to improve other aspects of an increase in the increase. Here, the best environmental issue. Aviation industry uses as a fuel in the transport sector too. Therefore, at the same time increase the amount of carbon emissions into the atmosphere is responsible. For this reason, many governments have enacted laws regulating the amount of air emissions cause. They have adopted strict laws to curb excessive emissions in the UK, has been a big fan of these factors. Set carbon limits for industrial countries and the carbon remaining within the limits of their own do not stay within the boundaries of the other airlines ...