-Common Size and Comparative analysis also show the similar pattern.
⇛ Year2008 was a significant variable in fuel expense changes
Global Economic Downturn and Crude oil prices
Global Economic Crisis directly caused the explosion of oil price and
this brought the surge of fuel expenses as well
This phenomenon directly caused the huge burden for fuel expenses to airlines.
airline industry would be a great opportunity for our improvement. This is because airlines industry is a mixture of many hospitality fields such as service science(Online booking system, Aircraft technology, IT system for serving customers ), service marketing for ticket sales like hotel industry and food-service industry. For these reasons, we chose airline industry and AMR Corporation and US A
airlines, driving a car or taking a train could be substitutes for the flight. As for the international airlines, the treat of substitutes is very low, because there are few options.
ㆍCompetitive Rivalry. In US, the airline industry is intensely competitive. Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get
③ Environmentally-responsible aviation : By March 2010, EU-based airlines must provide carbon dioxide emission reports. That’s why, over the last six months, several EU airlines have begun using bio-fuel either wholly or in part on certain routes. This trend is now spreading to North America where several airlines have indicated their interest in buying eco-friendly jet fuel.
3. History w
airline industry and these are alliance, privatization and empowerment. By these changes, competitions of airline industry become really fierce and this leads the necessities of adopting economies of scope. Hub-and-spoke system, which was implemented in the airline distribution system to take advantage of economies of scope, is widely used. Moreover, we were able to find out that this system migh