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Airline Industry Analysis 2

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Airline Industry Analysis 2
Introduction

Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries (Airline Industry, 2000). In Globalization era, Airplane industries are really important to move people to another place. It’s really reliable and secure. Compare with five decades ago. Airplane was frightening and costly. People try to find new technological innovation in airplane industry to devoted passenger more cheaply and safely. It proved that each generation of new plane such as Boeing and airbus has been more reliable carried the passenger. In Malaysia, there are two well-known Airline company. They are Malaysia Airline and Airasia. They divide by the service that they provide. For example, Air Asia Provides no-frill airline and low-cost. On the other hand, Malaysia Airline emphasis in luxurious travel and provide good service to their customer. Airline industry in Malaysia is really important to expand their tourism.

Political Environment

It is an industry that provides air transport service for passenger and also for cargo and mail. We can divide this industry into two categories based on the destination; there are local or domestic flight and international flight. For airline industry political stability means everything for them especially for international flight. International flight is air transport service between two countries or more. The most common political issue that may influence the industry is relationship between the countries. For airline industry in Malaysia, to flying outside Malaysia is difficult. Bilateral agreement can effect the price decision making, because this issue is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok,



Cited: on 21 June 2006), Available from: Appendix Figure 1: fly-by-wire control technology Figure 2: example of e-ticket [pic] Figure 3: noises pollution statistics Figure 4: water pollution statistics Figure 5: Air pollution statistics

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