Changes in market condition effects on the airline industry

Changes in market condition effects on the airline industry The purpose of this assignment is to study the changes in market condition that have affected the airline industry. The Airline industry has been introduced to the world since 1909.Airline services vary from intercontinental, to intra continental, domestic or international. They are portrayed through an oligopoly structure which is limited number of firms overlook the industry to produce imperfect competition. We discuss about airline oligopoly structure and current economic environment that shows an impact to the airline industry. The effects of technology advancement and competitive market will trigger the airline industry in terms of benefits and burden. We study the airline oligopoly structure, current economic and noneconomic environment, change in technology, effect of externalities and price discrimination shows an impact in the airline industry. Currently the airline industry is in high competition market causing a wide shakedown which will have long distance effect on the tr end of expanding the market. Airline industry was at least part government owned during the past but in the U.S most of the airlines are private owned. Airline Industry Structure The airline industry is classified as one of the oligopoly market structure. The oligopoly market is dominated by a number of firms that control the whole industry and this is a type of imperfect competition. Oligopoly firms have the rights in setting the price of a certain goods and also creating many types of output levels. When the oligopoly takes place in the market, competitors will compete with each other due to producing the same goods. Therefore, they will develop new ideas such as lowering the price of their goods and also other ways to improve the market share. In other words, oligopoly firms are interdependent. Besides that, an oligopoly firm such as the airline industry requires a huge capital investment to expand the business which will result in a higher cost. Based on the Air Transport Association (2002), roughly two thirds of the overall airline industry cost structure is fixed cost. According to Pettit and Murphy (2001), when there are over capitals, the airline industry cannot possibly generate sufficient revenues to cover up their total fixed cost hence the industry. In order to increase the number of passengers, the firm must reduce its cost and also to be given a fixed capital requirements. Moving on, airline industries are highly potential in producing efficiencies such as providing a better service and lower price to consumers. Through optimization, the airline industry may achieve higher profits and increasing the load factors, reducing the maintenance cost, settle off overhead cost for operating through synergies (Petit and Murphy 2001), and also suggested to reduce the flights to a weaker market. (Sharkey 2003) Next, an oligopoly firm may use the market power to control competition but however new innovation firms can overcome it by using the strategy of the low fare airlines. Although there is difficulty to enter the industry such as high cost and capital requirement, the industry appears to be more competitive as proven by the low-fare transport. Hence, new market competitors can continue experiencing high growth in profit unlike the bigger competitors. In the airline industry, it consists of smaller and bigger airline when both merge together, the antitrust considerations may prevent it from happening. According to Blair and Harrison (1999) and Moorman (2002), in order to protect new competitors in the market from an unfair competition and also anti competitive acquisitions, the antitrust provisions are required to change and enforce. Lastly, the price determination and economies of scale as well as the low cost competitors show that the airline industry is not a stable industry. Thus, structure with the lowest cost would be the survivor when the sales in the industry decrease. Current Economic and Noneconomic environment The airline industry has been facing a chain of unpredicted and noneconomic factors such as terrorist attack in 2001, spreading virus of severe acute respiratory syndrome (SARS) and also economic slow down. The airports have increased the cost of airlines after the September 11 attack, resulting impact on demand for air flights and also traveled time due to intensive security check. The 9/11 event had raise losses of that year to $7.7 billion, regardless government intervention of $5billion for the cost of shutting down the aviation system. Beside terrorist attack, airline industry had come across economic slowdown in early 2000. The economic slowdowns ease the business traveler, when the airline is depending on gainful sales of high price seats. According to Newman 2003, he suggested that even before the terrorist attack the airline industry is experiencing slow growth of passenger travel. Highly competitive airline is another factor affecting the airline industry. Until late 1990s, major airlines enjoy competition with low fare carriers. The new competitors are having lower cost per seat mile while making profit at lower fares. Microeconomics and macroeconomic market factors have lowered demand and increased elasticity demand in the industry. Figure 1 shows demand for airline tickets has decreased from D1 to D2 becoming more elastic. Is becomes flatter when there is higher price responsiveness, represented by decrease in price from P1 to P2. The equilibrium will shift from E1 to E2. Oligopoly industry will be motivated by the change in demand to reduce supply of seat in order to reduce the cost with a constant price at P1, supply curve shift from S1 to S2 with equilibrium at E3. FIGURE 1 Effect of technology changes The worlds airline industries have been using technologies to build customer relationship and also generate income to solve some of their difficulties. For airlines, technology like Electronic ticketing (ET) only offers in certain airlines decades ago. The main purpose of it was to encourage the implementation of ET with lower distribution costs and also to enhance online environment of airlines. Technology has transformed how airlines work back then. It is so much easier to manage the check-in system. Most airlines are taking up system that runs automated check-in. Instead of arriving at the airport early, traveler could just swipe their credit card through a machine and print out the e-ticket which saves a lot of time. Technology could be use to boost customer relationship. Through the Web, industry could offer travelers to customize their specific travel. For example a traveler that flies frequently are most likely to enjoy the airport lounge services, therefore the Web interface could direct the service with a higher cost with satisfaction. Figure 2 shows the effect of technology advancement in the airline industry. FIGURE 2 When demand for air ticket increases, the demand curve eventually shift upwards. The initial equilibrium is at E1 with initial price and quantity at P1 and Q1 respectively. With increase of demand, price will increase from P1 to P2 and quantity demanded will increase from Q1 to Q2 and the new equilibrium at E2. When airline industry is enjoying their benefits from cost saving, consumers gain benefits from greater price transparency and other choices. According to Newman 2003, he suggested webcasting and other types of telecommunication shows impact in the airline industry because there are increase in business travelers and consumers. Many business meeting or interview are conducted through video conferencing which save time and cost. Also employee could easily apply for overseas job via audio and video streaming at a distance location. (Cope 2002) Technologies that can communicate with each partner is essential for future benefits in the industry especially green technologies which could build a sustaining future. Price Discrimination Price discrimination is defined as a firm selling same goods at different prices to different types of customers. Price discrimination is also a known as price strategy. Example of firms that applies the price discrimination is the low cost airlines. Promotions for cheap air tickets are always advertised to attract customers to buy their air tickets earlier by giving a lower price. This enables the airline firm to have advantage of knowing their flight seat status and also a source of cash flow. When the date of the flight is getting nearer, the price of air tickets increases therefore customers that buy the tickets are likely to be paying at a higher price. In other words, this represents the concept of price elasticity of demand. Price elasticity of demand basically measures how much the quantity demanded of certain goods responds to a change in price of the particular goods. The figure below shows the effect of price elasticity of consumers on total revenue. FIGURE 3 Based on figure 3, we can observe that when the demand is elastic, the quantity demanded which are Q1 and Q2 will be greater than the percentage change in price P1 and P2. The total revenue after decreasing the price from P1 to P2 is greater than before the decreasing it. This is proven that the sales of the airline increased due the increase in quantity hence in this airline industry, consumers are relatively responsive towards to the changes in price. Effects of Externalities The airline industry growth has been increasing year by year. We can observe that nowadays many people are taking airplane to travel around the world. Furthermore, based on research during 1990 the number of passengers was approximately 125 billion and after 10 years it has increased to approximately 260 billion passengers. This showed that the demand increases every year because of the new development of technologies and also new low-cost airlines firms. Although the airline industry shows a positive growth every year, the negative external cost of flying more passengers pollutes the environment. Based on Dr Keith Tovey, energy science director at the University of East Anglias carbon reduction project. If you fly to Sydney, Australia, a plane will emit 5.6 tons of carbon dioxide per passenger, which is as much as an average household will emit a year. Moreover, aviation is one of the fastest growing sources of the greenhouse gas hence in future the percentage of emission will increase and affect the environment. In order to overcome this problem, the government has introduced a new solution which is the aviation tax to curb the environment damages. This would affect the increase airfare prices because of the tax on suppliers which had increased their cost of production. FIGURE 4 Based on figure 4, when the government implies the aviation tax on the suppliers, suppliers will reduce their supplies to reduce their cost. The supply curve S will to S1 hence the decrease in supply will lead to a decrease in number of quantities from Q to Q1 therefore the price will increase from P to P1. Conclusion In a nutshell, the changes in the airline industry market will affect the consumers to make decision. Certain airlines are cutting cost in order to increase their profit. Technology such as Wi-Fi is highly recommended in flight to satisfy customers need. (Newman, 2003) Small changes in the number of flight passengers can affect the airline financial result. Whenever there is a reduction in airline industry like the one during 2008, airport operating cost remain constant. Coy (2002) noted that every seats remaining available are consider as a lost although its at reduced fares. This is where price discrimination takes place. The global airline industry lost $50 billion in the past 10 years with $11billion last year alone. It would take at least three years to improve the industry. Worsen of airline has forced some airline corporate to file for bankrupt. According to IATA Chief Economist, the industry worst loss was $13 billion in 2001 with the September 11 event, and $80 billion income drop last year. To improve the economy, there should be more new entrants in the market to be more efficient. Regardless of any factor, the airline industry will always be unstable. Price will normally rise when there is tax charged by government. Thus, consumers plays a vital role in adjusting the changes occurs in the airline industry.

It is right that students should contribute to the cost of their degrees? Essay

The level of education demonstrates how strong a nation is constructed. It represents one of the most important factors which contribute at the process of the development of people from an intellectual and social point of view. More and more students have the opportunity to obtain a degree and to have an appropriate career. In many countries the cost of their degrees are funded by the state, this increasing the number of applicants each year. However, there is not a matter of number, but a matter of quality this being the principal account why students should contribute at the cost of their degrees. The governments should be aware that the effectiveness of education is measured after the number of ambitious, talented students who fulfil their potential. It is obvious that whether the state funds their degrees there exists the admissibility for students not to work so hard and not aiming to affirm within the society. From the psychological point of view, people are inclined not to appreciate enough something for what they do not need to work hard in order to achieve their goals. Whether the states would give a part of this responsibility to students, the perspective from what they understand the issue relating to education is likely to change for better. Many argue that this change would merely be a burden for students during their university years. The account of this is that they should concentrate on studying more than looking for a job to pay their degrees. Moreover, this is going to affect the students from all backgrounds as long as it is well-known that some of them cannot afford to pay large amounts of money for being educated. It might be true that the modification will cannote outcomes, but the benefits are higher. The government should pay attention more to the quality of students than the number of students. Taking into consideration all these outcomes, perhaps the government should act in a way so students concur even with a small amount of money. The apportionment of funds between the state and students will have a positive impact on the economy, being fewer problems relating the spending cuts in education. If not, taking into account that the state has to pay large amounts of money because the costs of obtaining a degree is higher and higher it will affect the way in which a country aims to improve its statute among the nations from all over the world. Likewise, there will be many advantages relating to facilitations. The government will not only pay attention to payment, but to all the needs of students and there will be more investments in necessary materials and equipment. Every state should be aware of the importance of the quality of education and the importance of making significant steps towards the improvement of students’ skills. According to students the right to participate at the cost of their degrees will not only motivate them to make the most of their education but also the economy will improve.

Online Nursing Degree BSN Students Share Time Management Strategies 2019

Finding the time to commit to earning a Bachelor of Science in Nursing (BSN) can be a major obstacle for working Registered Nurses (RNs). Now, thanks to a recent survey, online nursing degree BSN students are sharing their secrets of success. Online Nursing Degree BSN Students Say Distance Education is Essential Survey responders revealed that choosing an online nursing degree BSN program was a critical part of their time management strategies. Online nursing degree programs allow for more flexible scheduling than campus-based nursing programs. 2 Keys to Completion of Online Nursing Degree BSN Programs Although an online nursing degree BSN program demanded more time than many students expected, they were able to incorporate classes into their hectic routines. Scheduling and prioritizing were identified as the 2 main keys to successful completion of an online nursing degree. BSN students also warned that procrastination must be avoided to maximize time. .u65d1d7c3b2e97654e5354025c9aad85d { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u65d1d7c3b2e97654e5354025c9aad85d:active, .u65d1d7c3b2e97654e5354025c9aad85d:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u65d1d7c3b2e97654e5354025c9aad85d { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u65d1d7c3b2e97654e5354025c9aad85d .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u65d1d7c3b2e97654e5354025c9aad85d .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .u65d1d7c3b2e97654e5354025c9aad85d:hover .postTitle { text-decoration: underline!important; } READ Criminal Justice Online Training Postal Inspectors Keep Workers Safe and Investigate FraudOnline Nursing Degree BSN Students Make Time for Priorities When one student sat down to make a schedule, she discovered that she was wasting valuable time in her days. Enrolling in an online nursing degree BSN program caused her to rearrange her days and make better use of her time. Another student summed up the discussion by writing, People make time for what is important to them. You have to ask yourself what your priorities are. For more information about enrolling in an online nursing degree BSN program, prospective students are encouraged to submit an information request form from the school of their choice. Additional nursing resources and online nursing degree BSN programs are also available through College-Pages.com, the leading education and career resource website. Related ArticlesCriminal Justice Associate Degree Online Understanding and Beating ProcrastinationInternational Business Associate Working Professionals Find Free Time for SchoolLPN RN Online Program Combine Business and Nursing for Advanced Career OpportunitiesOnline RN to BSN Does Education Make a Better NurseA Day in the Life of an Online Masters Degree StudentAccelerated BSN Option Take a Leadership Position in the Field of Nursing as a Case Manager .u183a906f03dac1a9e5ef3fd9a447c22c { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u183a906f03dac1a9e5ef3fd9a447c22c:active, .u183a906f03dac1a9e5ef3fd9a447c22c :hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u183a906f03dac1a9e5ef3fd9a447c22c { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u183a906f03dac1a9e5ef3fd9a447c22c .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u183a906f03dac1a9e5ef3fd9a447c22c .postTitle { color:#000000; text-decoration: underline!important; font-size: 16px; } .u183a906f03dac1a9e5ef3fd9a447c22c:hover .postTitle { text-decoration: underline!important; } READ Associate in Applied Business Top Employers Reveal Hiring Criteria

Cosmetic Surgery Of Breast Augmentation - 1526 Words

Breast Augmentation Today, more and more women think about cosmetic surgery to make their bodies look perfect. The most popular kind of plastic surgery is breast augmentation. Some women want to enlarge their breasts; the others wish to correct their sagging bust, and they go to a surgeon and ask him or her to change their body. A short-term effect of such operation is full satisfaction with the new appearance and improvement of sexual life. Women often feel excited and think that their life will change for the best. However, such feelings are often temporarily, and they may develop into something worse. Therefore, there is another side of breast augmentation, which is less pleasant than the previous one. Such long-term effects as depression, pain, discomfort, various infections as well as suicide are experienced by many women who underwent a plastic surgery. Consequently, the theme of breast augmentation is important since it relates to thousands of women who hesitate whether to change their breasts or not, especially those women who have already made an operation. Although breast augmentation helps women become more self-confident in their beauty, this type of cosmetic surgery has also many negative effects such as unwillingness to breastfeed, different health problems, and even suicide. The first attempts of breast augmentation appeared in 1895 when a lipoma was transferred to the breast (Ramachandran). After that, some injections were tried; and only in 1962, the modernShow MoreRelatedTeen Cosmetic Surgery is Ugly1059 Words   |  5 Pagesparents worried fans would want to do the same based purely off of cosmetic reasons. Tisdale had a leading role in a movie where she was popular, had a great singing voice and all the guys seemed to want her. Why would the youth today not want to look like her? All of these reasons are insufficient when it comes to reality. Unlike adults who undergo plastic surgery to turn back the clock, teens sometimes crave plastic surgery to fit in. They may think a new nose will make them popular beyondRead MoreEssay on History of Cosmetic Surgery1655 Words   |  7 PagesHistory of Cosmetic/Plastic Surgery COM150 Plastic surgery is a medical specialty dealing with on the correction or restoring of external damage to the body. The word plastic comes from the Greek plastikos meaning to mold or to shape (Answers, 2010). Cosmetic surgery involves techniques to enhance the appearance through surgical and medical techniques. I will also investigate the most popular surgery procedures of the last couple years. Do you wonder how this type of surgery went fromRead More The Truth about Cosmetic Surgery Essay1150 Words   |  5 PagesThe Truth about Cosmetic Surgery Cosmetic surgery has become one of the most popular trends in America today. Whether you are reading a magazine, watching the news, or a television program, you are likely to see something about cosmetic surgery. Within the past year, there have been several television programs dedicated to people â€Å"bettering† themselves through body augmenting surgeries. Millions of people undergo risky surgery every year simply to improve or enhance a feature or body part.Read MoreCosmetic Surgery for Teens857 Words   |  4 PagesReview of the Literature Of the 223,000 cosmetic surgeries in 2003 on patients who were 18 years old or younger, 39,000 of them were breast augmentation, nose reshaping, and liposuction. Many parents are giving their teenage daughters breast implants for gifts. However, parents and teens do not take into consideration that teens bodies are still developing (Zuckerman, 2005). As the adolescents body grows, body parts that seem to large or too small can become proportionate (Izenberg, 2004).Read MoreOutside Beauty And Staying Forever Young1238 Words   |  5 Pagesthe highest percentage of this trend because women have been conditioned at young age to believe outer beauty is unsurpassed. Plastic or cosmetic surgery in the past has been kept hushed, never knowing did she have her nose worked on? Today plastic surgery is being embraced by the millions and highly looked upon. Recently a friend of mine had a breast augmentation. Her argument was the need to feel more confident in her own body. She felt out of proportion to the rest of her body. Young and old womenRead MoreCosmetic Surgery : Too Far, Caused Her Death1408 Words   |  6 Pagesis too far when it comes to cosmetic surgery? In Joan Rivers case her â€Å"too far† caused her death. Joan Rivers was known in the fashion world for her blunt looks, but to America, Rivers was easily identified because of her cosmetic surgeries. Rivers died on September 4, 2014. She was eighty one years old. She had cardiac and respiratory arrest on the operating table while undergoing a neck lift cosmetic surgery (Nathan). Rivers once said â€Å"I’ve had so much plastic surgery, when I die they will donateRead MoreCosmetic Surgery : Too Far, Caused Her Death1408 Words   |  6 Pagesis too far when it comes to cosmetic surgery? In Joan Rivers case her â€Å"too far† caused her death. Joan Rivers was known in the fashion world for her blunt looks, but to America, Rivers was easily identified because of her cosmetic surgeries. Rivers died on September 4, 2014. She was eighty one years old. She had cardiac and respiratory arrest on the operating table while undergoing a neck lift cosmetic surgery (Nathan). Rivers once said â€Å"I’ve had so much plastic surgery, when I die they will donateRead MoreCosmetic Surgery : A Woman s Beauty Through Surgical Procedure1455 Words   |  6 Pagesbeautiful.†Cosmetic surgery is enhancing, not improving the function, a person’s natural beauty through surgical procedure. Cosmetic surgery used to be for mostly the rich and famous because of its cost. Although, it is still not covered by health insurance, it has become affordable, making an option for almost anyone who which to alter their appearance. Some of the most popular surgeries are facelifts, brow lift, breast augmentation, rhinoplasty(nose), tummy tuck, and liposuction. Although cosmetic is marketedRead MoreAn At Home Recovery Center Before A Breast Implant Surgery With Gummy Bear Implants941 Words   |  4 PagesCreating an At-Home Recovery Center Before a Breast Implant Surgery with Gummy Bear Implants Following a breast augmentation at Dr. G Cosmetic Surgery Center in Miami, patients need to remain sitting upright for a few days. Therefore, patients should consider creating their recovery area in the living room. A recliner makes a great alternative to a bed. If a patient must remain in her bedroom, she needs to place several pillows behind her back. Patients should not bend, which is why everythingRead MoreWhy Cosmetic Surgery Improves Mental Health1689 Words   |  7 PagesColvin A main motivator for getting cosmetic surgery is the desire of being more satisfied with one’s own appearance and improving self-esteem. However, research has shown that this is not always the case. There have been variable results showing whether cosmetic surgery will improve psychological variables such as body image, self-esteem, and mental health. Body image specifically has been suggested to be a crucial factor in the desire to undergo cosmetic surgery. This is based off two important