How do economic issues, politics, and social factors affect the airline industry?
Since these external factors also affect the airline customers, airline industries also need to adjust their business operations and standards. With that, their strategies, prices, and resource allocations are being adjusted according to how these factors affect customers. As such, the most important thing that the airline industries need is to keep updated with the changes made by these factors. With that, they will be able to optimize their strategy, and keep up their revenues with their costs (Cederholm, 2014).
What is the financial position of the companies in the airline industry including the impact on airline suppliers? (Lessors), manufacturers and unions?
The financial position of the companies in the airline industry is considered as lower than the airline suppliers. The reason is that these companies rely heavily on the airline suppliers. Moreover, the supplies needed by the airlines range not only from the manufacturers, lessors, and to the union, but also in the system maintenance and operations as well. As such, when their services are of high quality, and more customers become satisfied, then it is expected that the suppliers will profit greatly in return (Cederholm, 2014).
Describe the importance of the airline industry to the travel industry and economic development
As of today, majority of tourism industries requires the services of airline industries. As such, airlines play a significant role to both travel industry and economic development. Tourist spots attract foreign customers, which is a great benefit to the economy of a country. In order to accommodate the guests, airlines need to accommodate them first, in order to reach their desired destination. At the same time, when the number of foreign visitors increases significantly, then travel industries need more employees to increase the quality of their services. As a result, the increasing employment will be reflected in the increase of the Gross Domestic Product of that country, which is a good indication of economic development (Aviation Benefits Beyond Borders).
What is the power of the buyer and supplier in the airline industry?
The power of buyer and supplier is considered as equal, in terms of their importance to the airline industry. As stated earlier, suppliers are responsible for the continuous operations of airlines, and therefore, they benefit significantly when the airlines use their supplies in the best way possible (Cederholm, 2014). As for the buyers, or the customers, their power dictates the adjustment needed by the airlines in order to accommodate what the customers wanted. Depending on the customer’s demand and trend, the price and services of airline companies alter from time to time (Ederholm, 2014).
References
Aviation Benefits Beyond Borders. (n.d). Tourism. Air Transport Action Group. Retrieved 23 January, 2017, from http://aviationbenefits.org/social-development/tourism/
Cederholm, T. (2014). The airline industry's growth and impact on economic prosperity. Market Realist. Retrieved 23 January, 2017, from marketrealist.com
