Assignment 4: Trends and Change

Assignment 4: Trends and Change

Introduction

The company that will be discussed in this paper is American Airlines, and the impact that will happen on the company with the changes in trends and technologies. The airline industry has witnessed many changes due to the technological advancements and globalization. Previously people use to travel on paper tickets which have now been replaced by electronic tickets making the facilitation of travel much easier. The airline industry faces threat from the rail and road transport business on short haul routes. Technology is improving the way that this means of transport operate.

Discussion

The trend of online conferencing is gradually gaining momentum which can replace the need of business travelers to travel. Companies such as Cisco, HP, Nortel and Teleris have designed many comprehensive and attractive systems that make the users feel like being in the same room. Companies are already looking for ways to cut costs, and this can be one way through which they can save up vital costs. Travelling involves a lot of time and money, and also security checks which can be a burden for the traveler. For the purpose of business, the airlines may face a shortage of travelers to give them business during the low season. Business travelers are a major revenue source for the Airline as they are not cost conscious, they only look at the convenience.

Every industry is looking for alternate source of power as the oil reserves of the world deplete. Boeing and a couple of other airlines are experimenting with the use of bio fuels in their planes in order to reduce the carbon footprint and reduce the costs. The development of these fuels can hedge the airlines against the entrance of new competitors and the rising price of oil. American Airline will greatly benefit from this innovation as it increases their efficiency. Fuel is a vital component of the airline's expenditures.

The Concorde jet was one of the marvels of aircraft engineering as it reduced the time it took the travelers to get to a particular destination. Such aircrafts if developed again by Boeing or Air bus can be used by American Airlines, and can serve their transatlantic route. In addition to this there can be a possibility of developing a plane that can operate without a pilot, automatically.

Security is a major concern for the airlines in the aftermath of the 9/11 attacks. People are now required to provide their personal information prior to their departure so that there could be a background check on them. The airlines could develop a system which takes the thumb impression of the customers when they purchase the ticket in order to ensure the legitimacy of the traveler and facilitate quicker background check of the passenger. Additionally technologies such as retina scan can be used by American Airlines to make their planes safer. Some passengers have the fear of flying as they fear terrorist attacks.

There are many destinations that are upcoming tourist attractions which will ...