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Abstract: This paper looks at how the last century has seen the development and growth of the airline industry from a simple mode of transport to a sophisticated one. Today, airlines offer internet services to their passengers while on board. Such advancements have largely contributed to the rapid growth and competition.
By definition, an airline company is a company that basically deals with air transport. People, goods, and services are transported from one place to another by the airline companies. Like any other industry, the airline is prone and subjected to the influence of competition from other similar companies. This paper will, therefore, attempt to look at the reasons of the growth of the airline industry that has been evident lately, as well as consider competition and the influence of the Internet on the wide use of airlines by passengers.
Growth of the airline industry
Although the aircraft were innovated a long time ago, their commercialization started in the US in 1914. The initial service that the airlines were utilized for consisted of the delivery of emails. At that time, it had been the fastest method of delivering emergency emails. Such a situation continued up to the late 1920s when the airlines started to provide services to people. Since then, the industry has registered a tremendous growth, as such, enabling to connect all the parts of the world. It remains the quickest means of transportation. However, one cannot deny the fact that it is the most expensive one. There are several airlines companies today.
Many of them are international, while others are regional only. The growth has also been noticed in the construction of the aircraft. Initially, very few passengers could be accommodated in the airplanes. However, due to the growing demand for the vehicles to transport passengers, high capacity airplanes that are technologically advanced, have made their way into the modern market. The growth has reached such a huge level that some airlines had to be withdrawn from flights since standards of operations have been changed to high.
Competitors in the industry
Like any other industry today, the airline’s market has become very competitive. The competition is intense to such an extent that it has pushed some companies out of the market, while others have been forced to merge and, as a result, they gained strength (Nemeth & Niemeier 1). The main competitors in the industry are from America, Europe, and Asia. Though the American airlines have a long history, most of their operations and flights have been confined to their country, offering inter-state services.
Based on the volumes of business that the companies hold, companies like KLM (France) and Lufthansa (Germany) have become major players in this world arena. Looking at the main airlines in the world today, one would easily conclude that airlines from the developed countries are dominant in comparison to the companies of the developing world.
Internet on the airplanes
All aspects of growth and competition in the airline industry are attributed to the spread and use of the Internet to some extent. Industries rely on it to stay demanded and survive in the market. The leading airlines have embraced the Internet while others lag, doing their transactions manually. The level of technological advancement in regards to airlines is high. The clients can contact the airlines’ offices by means of the internet any time the need arises. All transactions, including booking and payments, are internet based. The customers make arrangements from the comfort of their houses or offices, being an attraction that makes airlines have an edge above others.
Further, almost all airplanes have internet connections (Croft 2). As such, passengers can continue conducting their businesses while on board. Many passengers nowadays prefer to use airplanes that have internet connections, however, this option is available only in world leading airlines. Such services are relatively new even for successful and large airline companies, being an indication of growth within the sector.
Croft, John. “Better Bits.” Aviation Week & Space Technology 174.42 (2012): 35. Web.
Nemeth, Adel and Niemeier, H. Martin. “Airline Mergers in Europe – An Overview on the Market Definition of the EU Commission.” Journal of Air Transport Management 22. (2012): 45-52. Web.