The airline industry provided the fastest transportation service, thereby significantly attributing to the economic globalization. While, the operating model, profitability, and prosperity of the airline industry could be dampened by various environmental factors, such as economy, politics, regulation, technology, suppliers, competition, financial stability and stakeholder relationship. Thus, in response to changes in environment factors, the airline industry must promptly propose new strategies for survival. Major contingencies often altered environmental factors. In 2001, September 11 terrorist attacks dramatically stroke the airline industry, and resulted in some irreversible trends in the airline industry worldwide.
September 11 attacks represented a severe crisis in politics, national security, international relations, and economy. The immediate impact of the event of September 11 on the airline industry was the safety issue. In order to implement enhanced security measures, numerous aviation policies and security regulations were improved, and more security personnel were deployed at airports. As a result, the passengers needed to spend a massive amount of time standing in line for the security checks at airports. In addition to the fear to terrorist attacks, inconvenience and frustration caused by time-consuming security …show more content…
Recently, competition is the prime environmental factor that affected their marketing strategy. Southwest Airlines has the lowest cost per available seat mile (CASM) among the major airlines; therefore, Southwest Airlines is able to control prices to maintain its profitability level. However, the CASM of Southwest Airlines is increasing due to elevated labor costs and fuel
September 11 attacks represented a severe crisis in politics, national security, international relations, and economy. The immediate impact of the event of September 11 on the airline industry was the safety issue. In order to implement enhanced security measures, numerous aviation policies and security regulations were improved, and more security personnel were deployed at airports. As a result, the passengers needed to spend a massive amount of time standing in line for the security checks at airports. In addition to the fear to terrorist attacks, inconvenience and frustration caused by time-consuming security …show more content…
Recently, competition is the prime environmental factor that affected their marketing strategy. Southwest Airlines has the lowest cost per available seat mile (CASM) among the major airlines; therefore, Southwest Airlines is able to control prices to maintain its profitability level. However, the CASM of Southwest Airlines is increasing due to elevated labor costs and fuel