An environment of competitiveness must be cultivated in the airlines industry. Today for a company to be more attractive to its customers it must be able to convince the same customer on choosing that specific airline company to fly in.
The integration of the economic European community will have several advantages to a competing airline. Aviation is a key sector in the economy of Europe since most of the manufactured goods are transported by air transport (Givoni & Banister, 2006). The airline industry also provides a lot of job opportunities to people in Europe and all over the world.
European economic integration is preferably important to an airline company because it have the opportunity to freely advertise itself to the neighboring countries thus making more profits. Tariffs have been reduced, national cartels dismantled, subsidies reduced and the relaxation of travel restrictions (Givoni & Banister, 2006). An airline company can therefore make lots of money from the integration. Air infrastructure has also become improved since international clients are now using the airlines. There is a greater growth of each country’s GDP and because of this, the company earns more (Givoni & Banister, 2006). Due to the economic integration, the cost of travelling with air transport, the cost of travelling by air will become lower.
The opening of Eastern Europe will be an important step in the future for airlines in Europe. Governments in Eastern Europe should work with the stakeholders of the industry to fully realize the benefits (Givoni & Banister, 2006). The respective governments must ensure that the environment, infrastructure and passenger rights are adhered to. This will make the airlines be held in high regard by their customers. More markets will be opened and therefore the companies will make more profit.
References
Givoni, M., & Banister, D. (2006). Airline and railway integration. Transport policy, 13(5), 386-397.
