Case Study Air Transport Management And Operations

Air Transport Management and Operations Module AT502 TASK 3 Ben Matthews 30/10/14 CONTENTS Task 3: Perform a strategic analysis of your chosen airline. The analysis should take appropriate consideration of factors both internal and external to the organization. 1. Introduction 2. Main findings 2.1 Appraisal of airline’s operating environment 2.2 Appraisal of Airlines internal capabilities 2.3 Key Issues identification and analysis 3. Conclusions 4. References List 1. Task 3 Industry Overview The LCC industry first began in the United States with Pacific Southwest Airlines, evolving the model in the late 1940’s. The EU business did not develop until after deregulation came into force during the 1990’s, thus making air travel cheaper and more accessable for a larger proportion of customers. Moving forward on the ever evolving requirement for cost effective travel mainly by families and recreational individuals (average annual increase of 9.4% for leisure passengers between the mid 90’s and 00’s), aviation has experienced rapid incline since then. Most significantly, UK company EasyJet, established in 1995 and Irish carrier Ryanair, born in 1990. Both were able to shape the European market. 2. Main findings 2.1 Appraisal of the airline’s operating environment Political Factors The evolution of the LCC industry in the EU was only possible because of one major change in 1997 – the deregulation of the European flight market. 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