Airport value chain essays

Some charges like Air departure, landing cost security charges are not in control of airlines operators. This threat is for all airlines but especially to those airlines who are keeping their rates very low. Full service airlines can enter any time by reducing their cost. Because profit margin of Air Asia is 30% which is very less as compare to any other full service airlines. Problem may occur due to heavily depend online sales, like disruption or any other fault can happen to system which may result directly on sales. There will be lack of confidence among customers due to terrorist attack, accident, government policy etc.

The deregulation of the industry will further segregate this value chain, creating opportunities for new operators to make a foray into the industry, thereby fostering efficiency gains as a result of intensifying competition. Moreover, airport operators would do well to enhance process efficiency by reducing airport costs and the charges levied on airlines. Further, the strategic location of airports, their size as well as the catchment area are crucial factors that will assist in attracting investments, thus contributing to passenger growth.

Airport value chain essays

airport value chain essays


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