Aviation in the Global Context

Abstract

In this assignment we shall see how network management effects the strategic planning of the airport capacity. Airline alliances in the airline industry are also covered in this assignment. There is also a detailed written about low costs carriers.

Aviation in the Global Context

Introduction

21st century is the century of competition, risks and challenges. Every organization is in the threat of its competitors and challengers. Airport market is the vast market. It is facing new challenges every other day. Every year, Airport market faces new hardships and downturns. It is necessary for airports to utilize the greatest opportunities. Airports are getting commercialized and privatized in each country. Due to this privatization competition is becoming greater than previous years. There are risks in the capacities which have to be increased with the passage of time. The physical planning of the airport should be adaptive because of competitive market. There are no interactions between physical planning and the strategic planning.

Discussion

Transport networks and communication always influence each other. There are researches to find the dynamics in the structure and use of network. For example, there are similarities in network geometries. There are new developments because of these airline network evaluations. These networks help us to understand the connections and the changing patterns in airlines.

Networks design in order to control human activities in a better way. Networks have to adjust themselves because of the new challenges. Today, there are many advance systems and technologies for adjustments in the networks. Network analysis is necessary, and it should consider as a tool. Network analysis is mandatory in telecommunications, operations research, industrial organizations, economics and also business administration.

Airline industries are moving into globally interconnected corporate organizations (Martin & Voltes-Dorta, 2008; Nijkamp, 2008). The airline industries have also much government influence than any other industry. All states have their independent rights in their airline industries. There are also certain agreements between each airline industries of different territories to determine their routes, destinations and frequencies. Airline industry is the market which welcomes the new comers when they are able to perform. There is no oligopoly in the airline market. Due to entries of new comers there are chances of competition. That is why airline industry is now the most competitive market industry. There are many cases in which new entries have made their demands within a year. The network structure of the airlines is of the complex nature, and it is difficult to manage such a complex structure. This also depends upon the connectivity of the structures. (Barabási & Oltvai, 2004). In last ten years, network structures have improved a lot. These structures gained the new technologies and also new geographies (Waters, 2006). This is because many networks were not able to determine the problems and their complexity might be critical. Agents always wanted to have certain benefits by means of joint activities. There are many reasons that why airlines form alliances and the major reason are the cost reductions. It is easy to configure the network ...