GLOBALIZATION

Globalization in the air industry

Globalization In The Air Industry3

1.Introduction3

2.Academic/theoretical framework4

3.Analysis application of theory to evidence5

3.1 Market Drivers9

3.2 Government Drivers11

3.3 Competitive Drivers11

3.4 Cost Drivers13

4.Recommendations14

5.Conclusion15

Globalization In The Air Industry

Introduction

Airlines and globalization are closely linked creating both challenges and opportunities for the enterprises and employees. On one side to integrate global markets airlines has been crucial also it has provided growth to aviation employees with more communities of airlines, goods and people. On the other hand it has been a great problem to tackle the cost which comes with the global transportation by air.

Airline industry is a huge industry in itself and contributes majorly in the wide span of social processes, economies and the politics. The demand for its services has massively grown over the years of its evolution and the drive of its demand is dependant on the desires to achieve multiple goals through this service. It cannot function solely on the tourism but if countries need it to contribute in their economic development that the latent demand for the goods and service must be hugely catered through this line of transportation. It is very important for the governments to keep the airline industry highly functional to attain efficient growth in the economic sector because if it's not like this then the supplies may get inappropriate and wasted. There is a lot of dynamism involved when it comes to the economies with the particular thrust of globalization. This also has implications on the airline industry as it is the industry which basically serves the globalized area of businesses, so the loop holes due to the different developing shapes of the airlines must be taken care of, so that the economic development process and the airline industry are blended well and grow together.

Academic/theoretical framework

The analysis here is extremely simplistic, focusing on one sector that is air line industry and the possible casualty to this direction with the impact of globalization, particularly because of multi dimensional and dynamic nature of the globalization. There is an increased blurring of domestic and international transport as the airlines are investing in each others businesses and forming a global alliance. To better get the idea of this blurred image air industry in the European Union is a good example as both the domestic and international operations is now a de facto one market.

Its not that only air transport is facilitating the global trends but with it there are some feedback also one of them is the labor migration. Globalization gave scale to economies in air transport, notably because of that the entire infrastructure in getting revamped, in return bringing fare reductions. In addition to that these global trades have increased the global income resulting in more tourism travelling and movements of the exotic goods as well where air transportation has the competitive advantage on the basis of care handling. Finally globalization brought greater opportunities of getting mobility across nations for both, temporary and permanent migrations. The advancements and the developments in the airline structure have made it ...