Case study 1: Chaos in the skies- the airline industry pre- and post-9/11 Question no 1:
Provide recommendations for airlines? How they should react and plan to event as 9/11 in future?
History:
The terrorist attacked on New York world trade center and Pentagon on September 11, 2001, when civilians plan were highjack by the terrorist. This was the start of one of the most deadly terrorist attacks in the history of New York city.
While the United States economy were slowing in the months before this incident and after this the economy went into depression. The air line and travel industry were the worst hit of all the industries. This was an overview of the situation before and after the incident.
Environmental Analysis: 1. Ageing population (retirees) 2. A rise in GDP. 3. Many people travel for leisure. 4. Differentiation ( restrictive tickets conditions) 5. Hub and Spoke.( hub with a lot of spoke can give you on stop service) 6. Airlines forged alliances.
Situation before 9/11:
Social factors: From 1990 to 2000 there was a huge increase in the airlines by increasing the no of passengers from 450 million to 700 million. The main reason for people to fly was leisure and business trips. Basically travelling by plane was sign of wealth and success.
Technological factors:
There was a huge improvement in the airlines, with invention of more efficient engines for the satisfaction of costumer. They can further more improve the airline to become competitive towards other airlines by making improvements such as giving TV screens in the seats.
Economical factors:
There was a huge increase in airline up to 160% from1978 to 2000. In 2000 due the rise in the cost of fuel the prices of airlines increases a lot due to which they to reduce the labor.
Political factors:
Basically the industry was fragmented from the constraints of national