Provide a summary of the industry characteristics service ch

Provide a summary of the industry characteristics, service characteristics, advantages and disadvantages of the Air Carrier industry. Use a format similar to the one used in the class overheads.

Solution

solution:

1)Air carrier industry is one which deals with carrying the personnel and goods from one place to other through aircraft.

2)aircraft industry in itself is service industry as they are just providing service for comfort and not any product in return.

3)industry characteristics are feature of this industry being an industry and are as follows

1)high capital invest ment is needed

2)high cash flow is necessary to provide good margin of profit toassure that all debt will paid.

3)labor based as they are highest expense in this industry

4)seasonal margin of profit is high

5)scheduling of route structure and passenger capacity has to done regularly

6)revenue and cost are high and analysis done by load break even analysis

4)service characteristics:

1)as service industry it is customer dependent

2)we have to take look at comfort of passenger traveling by providing them all possible luxury

3)seat configuration to increase profit from official traveller

4)fuel cost are high and they affect service being provided

6)advantage

1)easy mean of transport

2)provide employment

3)contribute to GDP

4)faciliate tourism buisness

7)disadvantage

1)it is weather dependent as extremity might stop aircraft services

2)fuel cost are not fixed and they affect profitability at each instant

3)labor cost is hogh

4)some supplier dominates the market

5)huge availability of substitute facilities

8)these are certain characteristics of air carrier industry and in depth it has huge oppurtunity to grow but with slow growth rate and lesser margin of profit