OPERATIONS MANAGEMENT

Operations Management Theories, Tools and Techniques in the European Airline Industry



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Operations Management Theories, Tools and Techniques in the European Airline Industry

Introduction The particular concern of European airline industry is the focussing on network carriers. Furthermore, the European airline industry has developed the scenarios planning for the year 2015 by considering some established important trends of the industry. These include the low cost airline operations and demand management of people in terms of air travel on the basis of ongoing economic crises. On the other hand, there are some opportunities for the European airline industry in order to explore the further business destinations in China, India and some major countries of South America, as these regions present the great markets for the operations of the European airlines. Another opportunity includes the continuation of the European airlines industry at international platform on the basis of their solid European network as well as customer loyalty and satisfaction.

Recent data has reported that the European airline network is performing its airline operations at effective low cost with focussing on short routes strategy. This is the indication that within tough economic climate changes, the European airline industry is performing well among other business sectors. The European airline industry is realising the value of airline operations at low cost strategy and because of this effective means of doing bunnies, its market shares as well as growth with expansion is increasing day by day. The airline fares are affordable and the destinations which are provided to the customers make a great prospect for them in order to choose the European airlines for travel purposes.

Approximately more than 100 European airports are serving passengers with low cost ravel expenses. The advantages of low cost strategy in terms of services not only bring better rewards for passengers but also provide great opportunities and benefits to the European airline industry by making their operations easy and effective (Davies, et.al, 2005, pp. 61-79).

Discussion

Deregulation Strategies

The European airlines are modifying their operational and strategic functions in response to the regulatory liberalization by means of exploring the market sizes as well as market dominance, performing hardworking efforts in order to reduce their operational cost and expenses, exploring the use of new marketing tool and introducing new marketing and operating practices within businesses. However, new entries of airlines are continuously challenging the major European airlines and their routes. On the other hand, the European airline industry is concentrating increasingly day by day not because of the economic climate changes and the competitions in the overall airline industry of the world but due to the issue of market instability, which has led most of the remaining European airlines to join together with other airlines or compete on intra European services (Doganis, 1994, pp. 15-25).

Civil aviation is the most promising industry which has the potential to provide benefits for the European airline industry and it was previously completely maintained and highly regulated by the European ...