Challenges Facing Aviation Industry Case Study

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In every organization there are issues that need to be adjusted and dealt with to suit the needs of its customers, and in the aviation industry, where there are many different departments and millions of people from different race, religion, nationality and ethnic groups traverse, also where huge and very advanced technological resources are used to carry out day to day tasks/activities, several issues are bound to arise.
CEO and Director General of IATA Tony Tyler (2014) outlined 3 major challenges facing the aviation industry, these include:
• Safety In 2013 there were some 36.4 million flights and 16 fatal accidents. If you were flying on a jet aircraft, your chances of being involved in a major accident were one in 2.4 million. And among …show more content…

Over the last century airlines have just broken even. Despite all of the value that they bring to the world, they have basically destroyed a vast amount of capital. It is a very competitive and very tough business. On average, airlines make less than $6 per passenger. On about $750 billion in revenue, we expect a net profit of just $18 billion. For those of you who are good at arithmetic, that it is just a 2.4% profit margin.
Diana Coza (2014) also outlined a number of challenges facing the airline industry in her article posted on Travel Technology and Solutions (tts.com). Some of these include:
• Competitiveness
Any change in the GDP is often reflected in airline usage and the fuel also costs almost 50% more in just 5 years. According to Antonio Vázquez, the chairman of IAG and Iberia, `competitiveness is one of the most important problems being faced by the airline industry in Europe. Vazquez mentions that this makes alliances vital for the growth and development of airlines – whether with high-speed rail links or with other airlines. He states Iberia’s merger with BA as an example where both airlines have managed to gain immense benefits from the merger despite the fact that they haven’t integrated

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