Sample Essay on:
Macroeconomic Influences on the Airline Industry

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Essay / Research Paper Abstract

This 6 page paper examines the impact of different influences in the airline industry. Written in 3 parts the first part of the paper provides an analysis of the key factors that determine demand and supply in the airline industry. The second part critically evaluates the implications for the ‘traditional’ airline industry of the increased market presence of low cost airlines such as Ryanair, Easy Jet or Jet2. The third part then Considers what ‘traditional’ airlines can do to preserve and expand their market share and survive in the long run. The bibliography cites 7 sources.

Page Count:

6 pages (~225 words per page)

File: TS14_TEairmacec.rtf

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Unformatted sample text from the term paper:

and demand are very important. To appreciate these we can look at the influences on demand first and the consider the influences in supply. Air travel has become more popular and more routine. The acceptability and expectation that holidays and trips will involve an air flight are one influence ion the demand for air travel. This is the social pressure and perception of a flight. However, this is also influenced by other factors. One reason that air flight has become more popular has been due to the lower prices associated with travel. Any demand curve will be impacted b the level of cost in proportion to their disposable income. The lower the cost in relationship to the disposable income the more affordable the service or goods will be and the greater the potential for their sale. This means there are two influences with this consideration, not only the price, but also the level of disposable income. Low prices help attract more customers. This is not only in finite terms in the overall demand for air ravel, but also in the demand for a particular company. Air travel has increased as the prices have decreased. However, the price is also subjective as it is seen in relationship to the level of disposable income. For example, if an individual has a disposable income of 100 a week, and a ticket costs 50, meaning that a ticket costs 50% f their income may be less included to want to buy a ticket compared to an individual whos disposable income is 200 and the ticket is still 50, making this only 25% of the disposable income. This means the level of income is important, and as such anything that impacts on the level of disposable income will be an ...

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