Study of the airline industry important

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Study of the airline industry important

Past and Current Policy Pages: If competition, order, and uncertainty are not mitigated through regulation, the government reasons, the public will lose confidence in the transportation system, and the national economy will be impacted negatively.

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Among its other functions, the FAC was charged with ensuring that a critical element of the aviation transportation infrastructure—safety—was standardized through federal policy.

Although the modern-day FAA, along with the National Transportation Safety Board, retains responsibility for some important safety oversights, the deregulation of the aviation industry in impacted safety policies significantly. The nature of these changes will be explored and discussed in this paper.

In the case of the transportation industry in general and the airline industry in particular, regulatory efforts were intended to perform at least two broad functions: At times, these two functions conflicted with one another as multiple stakeholders attempted to exert their influence over the policy-making and implementation processes Burton et al.

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The obvious stakeholders included airline owners, operators and employees, and passengers, but there were a number of less obvious stakeholders as well Burton et al.

Airlines are highly dependent upon a number of partners and service providers whose economic interests are also at stake and Study of the airline industry important be affected by any policy and practice changes. These partners include food and service providers, such as maintenance, baggage handling, and cleaning staff, and, increasingly, retail partners that have advertising or service agreements that bring their goods and services to the direct and captive attention of passengers Doganis, Such retail partners include credit card companies, entertainment providers including DirectTV, phone and other telecommunication companies, and duty-free purveyors of perfume, liquor, and jewelry, among others Doganis, Finally, still another stakeholder group influencing industry regulation policies and practices is lobbying groups, which represent a variety of public and private interests and which often wield their influence by either promising or withdrawing financial support Knoke, As Burton et al.

In the matter of airline regulatory policy, then, the public that supports the airline and ensures its commercial continuity has minimal input about the type and scope of policies applied to that industry Burton et al.

Instead, moneyed interests and the legislators who are influenced by them have the greatest opportunity for input during policy discussion processes, as well as in shaping actual outcomes, the interpretation of policy, and in its implementation. Safety was a significant component of the airline regulatory processes that began in the s.

In addition to determining the standard minimum requirements for flight and ground crews, the FAC would establish standard operating procedures for air traffic control and in-flight and on-ground safety procedures, as well as identify standard procedures that would be put into effect in the event of aviation incidents or accidents.

Safety, then, is defined as the absence of both incidents and accidents; however, as Loeb et al. The FAA maintains an archive of both incidents and accidents; this archive is a valuable source of information over a longitudinal period, allowing comparison about the potential correlation between deregulation and airline safety in the United States.

Discussion of Effect of Deregulation of the Airline Industry Now that the history of the regulation of the airline industry has been explained, it is possible to move on to a discussion of the deregulation of the industry. By this time, significant improvements in technology, both in the mechanical and structural components of aircraft and in navigational and communication procedures, had permitted air carriers to expand their operational and carrying capacities Loeb et al.

At the same time, the frequencies and distances flown by major carriers in particular were poised for expansion into regions where service had not existed previously Loeb et al. The only factor that was preventing the full realization of such potential was the policies that artificially controlled competition Loeb et al.

The arguments were convincing and inCongress passed the Airline Deregulation Act, undoing almost 45 years of policy that governed the industry Loeb et al. The government also stipulated ownership rules for domestic airlines; only U.

Study of the airline industry important

Almost all other aspects of the industry were relegated to the airlines themselves in the deregulation act.This statistic shows worldwide airline industry revenue from through Globally, commercial airlines will generate combined revenue of around billion U.S.

dollars in One study illustrates this well. Researchers asked almost 2, workers to analyze medical images for “objects of interest.” They told one group that the work would be discarded; they. The Airline Quality Rating (AQR) is the most comprehensive study of performance and quality of the largest airlines in the United States.

The rating is a multifactor examination of the airlines based on mishandled baggage, consumer complaints, on-time performance and involuntary denied boardings. One study illustrates this well. Researchers asked almost 2, workers to analyze medical images for “objects of interest.” They told one group that the work would be discarded; they.

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