Airlines Strict Policies: Beneficial or Not
The airline industry is back to the 5% long-term growth rate, after facing impact of economic crunch and downturn along with other industries (Boing). It is becoming difficult for airline companies to survive and sustain in this changing and challenging conditions. The growth or sustainability of any business is directly linked to the satisfaction level of the customers. Same goes with the airlines, the sustainability and growth of any airline is dependent on the passengers' satisfaction level (Borenstein, & Rose, 2007).
It is expected that there will be a 6% increase in the passenger traffic in the following year. Apart from this it is also expected that there will be one billion fliers per year in 2021 (Pawlowski, 2011). This expected growth in the passenger traffic on one hand raise growth opportunities for airline industry but at the same time reflects the increasing competitiveness in the industry (Levine, & Yale, 1986). Different airlines have to come up with different strategic and competitive strategies and policies, in order to attract more and more customers (Wheelen & Hunger, 1986).
Apart from these growth opportunities, the cost of operations for airline industry is also increasing at a rapid rate because of increasing inflation and prices of fuel (Xiao, 2010). This is resulting in increase in ticket fairs and excessive strict policies on part of airlines. The strict policies of airlines sometimes cause annoyance and disturbance for the passengers. The important and crucial task for the airline policy makers is to judge the impact of these policies on the sustainability of the airline (Clougherty, 2001).
The important and crucial question which arises is that are these policies beneficial for the airlines or not? Are these strict policies of airlines affecting the profitability and sustainability of the airlines?
Business SUSTAINABILITY:
Before presenting an argument as an answer to above raised...
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