The paper "Economic Business Environment" is a great example of a report on macro and microeconomics. Air travel is a big and growing industrial business and involves the movement between places by use of airplanes or aircraft. It enhances economic growth, international trade, international ventures, and tourism and is therefore essential to the globalization processes taking place in many other businesses. The airline industry is integrated in such a manner that all countries have their airline. The benefits of this form of transport include speed, reliability, and security. The European Union airline business went through remarkable chaos in the early 2000s.
This had been caused by four main bankruptcies and two chief mergers, with all former legacy shareholders reporting a large profit decrease. The development of scientific knowledge has changed the way people live and understand the world they are living in, and the airplane is one of them. The oldest airline corporation is KLM, a subordinate company of air France, which started to operate from 1920. Today the airline business has arrived at a position where it would be difficult to think of life with no air travel (Doganis, R.
2004). Presently, there are over 1600 Companies in the world and only a quarter of these are quoted. This industry remained the largest despite the various financial difficulties faced in the year 1997 to 1998. In the past decade, the airline business has grown 6.6% every year. The main grounds behind the rapid growth of the airline industry are global investments and fast rise of international supply, manufacturing chains, and consumers, and swift expansion of lovely tourist destinations (Bamberg, G.2009). This evaluation is aimed at presenting a structural representation of the industry, and estimation the effects of change in demand and supply on profitability.
The current figures indicate that a comparison of the airline industry in the late 1990s and 2011;a) Price sensitivity of demand was 8% more, portraying an increase in customers. b) Customers liked direct flightc) marginal cost changes favored the direct flightsFinancial Analysis of the EU Airline IndustryPreviously, air travel has mostly been supported and operated through state support, either in form of equity or subsidies.
The business experienced an increasing loss during its 100-year history.
Bamberg, G. (2009). "Up in the Air: How Airlines Can Improve Performance by Engaging their Employees". Cornell University Press. Ithaca, New York. Pp. 89-91.
Demphilis, D. (2008). Mergers, Acquisitions, and Other Restructuring Activities. New York: Elsevier, Academic Press. pp. 74-79.
Doganis, R. (2004). Flying off Course; Airline Economics and Marketing. New York. HarperCollins Press. pp. 34-69.
Rosenbaum, J. and Pearl, J. (2009). Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. Hoboken, NJ: John Wiley & Sons. Pp. 46-50.
Ashkenazi, R. and Lawrence, J. (2008). Making the Deal Real; How GE Capital Integrates Acquisitions, England. Harvard Business Review, pp. 17-20.