Commercial Passenger Airline Service Industry Research Paper

Commercial Passenger Airline Service Industry - Research Paper Example Most of the small aircrafts offer exclusively business classes thereby carrying only a few people who are willing to pay a higher charge for the high quality services (Cento 11). Apparently, the demand and supply of the airline services is dependent on a number of factors. Some of these factors are positive attributes which boost the industry to become more competitive as opposed to other modes of travel. The negative factors affect the profitability index of the airlines as they record low revenue from reduced. FACTORS AFFECTING DEMAND OF AIRLINE SERVICES The airline industry goes through turbulent times while in other seasons, the business sprouts. This is due to a number of factors that affects the demand for the services of the airline industry. Some of these factors are controlled by the industry while others are not easily controlled by the industry (Shaw 34). For example, some natural factors that affect the demand for the services of the airline industry are not easily contro lled by the airline industry. Therefore, it is in the best interests of the airline industry to make sure these factors are not adversely affecting the demand for the services. The first factor that affects the airline industry is political stability. The politics in different places of the world are dependent on the political environment. Politics is an aspect that affects virtually every service and production industry (Fojt 22). This is due to the political orderliness that comes when the political environment is stable. When the political environment is stable, there is perfect supply and demand for services and products in the market. This is the same approach that is used in the airline industry. Many people would like to travel when the political environment is calm. For example, when there is political tension in a particular country, many people fear for their lives. As such they are not likely to travel to such places. This will affect the airline industry as it will strug gle with a low demand for its services (Ben-Yosef 23). Apparently, many people are not likely to travel when there is political instability in a country. In some instances, many people would prefer to postpone their vacations when there is political instability in an area. This will have direct and dire effects on the airline industry since there will be a low demand for the services and products of the airline companies (Cento 7). However, when there is political stability in most places where the industry operates, there are many people that feel the urge to travel. This will ultimately increase the demand for the services of the airline industry. Security is one factor that affects the demand for many services and products in the world. Security is an ultimate factor that affects their demand and supply for services. For example, when there is insecurity in an area, the demand and supply of services and products will be halted. In some instances, there is a curfew due to security reasons. As such, business operations are limited to the stated times. This is the same scenario that happens in the case of demand for airline services. Many people prefer secure places when they are traveling. As such, they will only consider traveling when there is steadfast security. Though airline industry tries to limit cases of insecurity, some instances are not controllable. For example, when there were terror attacks in September 11th, many people felt that the security