Essays on Passenger Airlines Trends and Economic Performance in Europe Case Study

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The paper 'Passenger Airlines Trends and Economic Performance in Europe' is a great example of a Macro and Microeconomics Case Study.   The past decade has been tough in the airline industry. An increase in fuel prices and union disagreements has resulted in the destabilization of some of the major airlines, not just in Europe, but globally. Some airlines have also merged so as to increase efficiency in the delivery of services to clients. Merging has resulted in the better utilization of resources such as technology, labor, and finances. Airline companies have also been on spending more on advertising; especially on digital platforms.

The advertising has been geared towards reaching a higher number of young people who spend most of their time on their laptops, smartphones, or computers at work. Such individuals are engaged in social media are on the lookout for new trends in different industries. Most young individuals also have good jobs and can be able to travel by air whether for work or leisure. Traveling by air is seen as being convenient since it is fast and safe.

Airlines need to go the extra mile through better customer service if they want to remain competitive when benchmarked against their competitors. The customer care that is delivered to clients should be more personalized so as to engage those that the airlines would like to attract to use their services. Europe has many airlines that offer the advantage of choices for consumers. Clients who would like to fly and use Europe’ s airlines can compare the available airline prices, discounts, and other conditions such as luggage limits and make a choice (Besanko, Dranove and Shanley 2009).

According to the International Air transport Association (2015), stout revenue has continued to be elusive for airlines. In 2004, the airline industry had a profit of US $369 billion and $746 billion in 2014. The increased profits in the industry have been due to the entry of low-cost carriers. The airlines in Europe have however only been able to gain about 3% profit margins. The airlines charge a tidy sum for airfares, but still seem to struggle so as to break even. The airline industry is vulnerable to terrorism, disease outbreaks, extreme weather patterns, and international wars that would result in travel advisories and a major reduction in the number of passengers.


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