Discussions about the aviation market are recurrent in the press and the media. It is true that this sector is experiencing many changes. So we took the opportunity to study this subject in more detail when we proposed to analyze it.
Today, globalization and competition have become critical parameters for air transport. Since the 80's and the passing of the Single European Act, Europe has taken over the process of deregulation and privatization of the aviation industry. What substantive changes does this involve for the airline industry? The increasingly global challenges on the world of aeronautics were characterized by the mission of national, bilateral aviation agreements, independent airlines, limiting market access, prices and laws imposed after bilateral negotiations. Even if these conditions persist in part in many markets, most airlines are increasingly willing to confront the situation of an increasingly open market. Air transport is now being restructured. Reforms to the air transport sector vary by country and roads, regulatory frameworks and the market structures in place, which are very different. The competitive environment has also evolved. The market has highly diversified because of the emergence of new actors, such as low cost airlines, offering a whole new dimension to the air travel market.
The work that led to the writing of this study focuses on the development of air transport. To study the situation in which airlines are and assess the impact, it is useful to use a particular sector. Keeping this in mind, we have limited our study to the European market, and to facilitate our study, we have focused on passenger transport. It is from here that our attention has been selected by the following problem: "are the new reconfiguration of the market and the emergence of new players such as low-cost airlines, due to deregulation enabling them to operate on the same niche, and is there competition between the so-called traditional companies and the low-cost airlines? The first part of this work will be devoted to market deregulation. To understand this, it is important to analyze the origin and the impact this has had on deregulation. Indeed, this market is of major importance in political, economic and social development.
The second part will be devoted to the analysis of organizational forms taken by airlines and their strategies, as a function of two parameters: the type of company (traditional or low cost) and the strategies adopted since deregulation.
The third part is devoted to the analysis of the behavior of the two forms of organization of airlines (Air France and Easyjet). We will establish a comparison between the two airlines, one traditional and the other low cost since deregulation.
It is in these parts that we will try to answer the question asked.
Tags: Low cost airlines; European Airline industry; Challenges in the airline industry
[...] At Air France, the mission of representing the country in international relations and global trade, as well as to promote the aviation industry, including national and European industry. For Air Inter, the task is to participate in the planning of the whole country, and helping to open up regional economic and employment areas, while promoting more access, and get more people into air transport. Each of these companies has its specific function, in view of the nationalization of the public service. [...]
[...] Faced with strong competition, Air France chose the merger to survive EASYJET B Historical B Placing on the market Easyjet B Easyjet is hit hard by deregulation in 2003 CRITICAL ANALYSIS OF AIR MARKET GENERAL CONCLUSION REFERENCES ANNEXES INTRODUCTION Discussions about the aviation market are recurrent in the press and the media. It is true that this sector is experiencing many changes. So we took the opportunity to study this subject in more detail when we proposed to analyze it. [...]
[...] These carriers have entered the European market with a range of minimum services, in order to offer low prices. The appearance of these low-cost airlines is related, among other things, to the economic problem of rising wage inequality. The ever-widening gap between poor and affluent populations has led to the diversification of markets, particularly in the airline industry. This diversification allows everyone, whatever their income level, to travel on a plane. Thus, in recent years, low-cost airlines have largely developed in Europe, and are responsible for a significant portion of traffic growth. [...]
[...] domestic market in terms of the number of passengers carried. In France, the development of these companies is new but very fast. Beginning in March 1996, Virgin Express opened a connection to Nice- Brussels. Since then, other companies joined, which accounted for 5 million passengers in 2002 of intra-Community French of total French trade) against only 2.6 million passengers in 2001 of intra-Community French, French of total traffic). Low cost airlines in Europe accounted for of the market in summer 2002 against in the summer of 2001 and in 2000. [...]
[...] - PART III COMPARATIVE STUDY OF TWO AIRLINES After studying the current air market, the actors, their strategy, and the introduction of deregulation in the aviation market and its consequences, we will look at a comparison between two airlines with a different model of organization. This analysis aims to show the most divergent element between a traditional airline and a low-cost airline, and also demonstrate that the appearance of the 'low cost' companies is not the only argument that led to a complete restructuring of the aviation market. [...]
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