airline industry issues

Take a look at one of the following issues consider a presentation around the assessment objectives at A2 level: Basic knowledge and understaning / application / analysis / evaluation



1) The Structure of the Industry:
market shares / merger and takeover / entry and exit
iberia ba merger (bbc)
iberia ba merger (bbc)
1200 job cuts at ba

2) Open Skies
removal of barriers to entry / increased contestability
basics http://news.bbc.co.uk/1/hi/business/6478651.stm
open skies agreement (reuters)
http://news.bbc.co.uk/1/hi/business/7256918.stm
http://www.open2.net/money/trailers_spring_08.html#plane
oct 2007 http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article2701536.ece

3) Impact of Low Cost Airlines
Entry of new firms / innovation
ryanair and expansion (BBC)

4) Collusion Activity
concentrated industries and joint profit maximisation / government regulation and action
EU Competition Page

British Airways and Virgin Fuel Surcharge 2007:
£270m fine announced (bbc)
Q&A BA Price Fixing Investigation (BBC)
Willie Walsh Reaction (BBC video)
airlines (ba and virgin) feb 2008
ba virgin august 2007

5) Trade Union Activity
unite and BA dispute implications

6) Breaking Up BAA
problems of monopoly / government action
baa airports break up (reuters)

http://news.bbc.co.uk/1/hi/england/7622013.stm
http://news.bbc.co.uk/1/hi/business/7571733.stm
http://news.bbc.co.uk/1/hi/business/7564877.stm
http://news.bbc.co.uk/today/hi/today/newsid_7571000/7571786.stm
http://news.bbc.co.uk/1/hi/uk/7572442.stm
http://news.bbc.co.uk/today/hi/today/newsid_7571000/7571962.stm

7) heathrows third runway
capacity issues / cost benefit analysis / alternatives
guardian special investigation
thames estuary airport
website
report

8) Exogenous shocks
Revenue Cost Profit Implications / Changing Nature of Market / Complimets and Substitutes

• 9/11
• Volanic ash
• Macro Economic impacts