1 Choose one of Porters five forces 2 Discuss the characteri

1. Choose one of Porter’s five forces.

\\2. Discuss the characteristics of the airline industry within this framework.

3. Does your selected market force result in higher or lower airline profits?

Solution

Airline industry is highly competitive and there is overcapacity and most airlines losing before crash in oil price.But with fall in oil prices fortunes of airline companies changing as 40% of cost is fuel and low oil price means more room from profit as input cost has gone down.

In current scenario at oil $30 plus fortunes are good and profitability will improve and trigger in revival of fortunes.Airline industry and market forces are dependent on global factors like fuel cost/load factor and other factors current global scenario is favourable for airline industry.Porters 5 forces are threat from new entrants and is like swot analysis Time is short wil revert

Mihir manek