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Crisis in Airline Industry at Malaysia

In: Business and Management

Submitted By syberfiq
Words 6578
Pages 27
INTRODUCTION

Business environment is very important and plays significant roles for sustainability of airline business. In the global and modern world, business environment also become more complicated and more challenging to the airlines. It is important for airline manager to know because it will help the airline to plan and prepare for any changes that threatens the survival of airline business.

The 21st century comes with so many changes, new technologies invented, circular of income of a country increase with better economy situation, air travel demand increasing very high which are given the airlines benefit to do business. Apparently, the 21st century not only bring benefit, but also bringing new risks for airline business such as fuel price volatility, natural catastrophic that had never been experienced before and others. The risks if not be taken with cares and smart strategies will threaten the sustainability of airlines.

This writing try to identify issues arising and new risks that affecting airline business. Identifying significant issues and risks is very crucial for airline management to make planning, scheduling, price setting for flight tickets, demand forecasting, traffic movement, and the most important is managing capacity. Therefore, knowing impact of issues and new risks in airline business is very crucial.

Survival of airline business is important for the global economy, airlines play important role as major contribution for Growth Domestic Product (GDP) of a country. Airlines industry is inter-related with other industries and helps their growth. For example, airlines are a major contributor for the growth in tourism industry and also international trading.

Chapter One
Business Environment

1.0 BUSINESS ENVIRONMENT

Business Environment comes from combination of two words…...

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