How the Macroeconomic Environment of the Airline Industry Affects the ...

Document from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 72, De Montfort University Leicester (De Montfort University Leicester UK), course: Strategic Management, language: English, abstract: This paper discusses the external economic factors affecting the strategic decision of airline industry and how this decision in turn, affect the market forecast of the aircraft manufacturing industry. Various business issues affect airlines operation either directly and indirectly, and these issues affect the strategic decision of the airline industry. The present economic crisis, instability in aviation fuel price, and environmental factors (such as the recent volcanic ashes and snow) has further shrunk business in the airline industry and thereby increasing competitive rivalry. Although the future projected growth by the airline industry look promising, factors affecting airline businesses can make it daunting. Strategic decisions however, will help the airlines to maximize this positive forecast. To make these decisions, it is vital for the origination to understand the macro-economic environment affecting the airline industry. [...]