Compared likeEmirates entering their home markets. how

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Compared to different industries the airline business features a rather short history to look back at. Eventhough it’s unfeasible to produce one date that is a start line for the airlinebusiness it’s possible to say the Wright brothers who conducted powered air flights in 1903 andby doing that set the idea for private aviation (Sheehan & Oclott, 2003). Six years after this flightthe German general and aircraft manufacturer Count Zeppelin was the first business man to found anairline. On the sixteenth of Nov 1909 the Deutsche Luftschiffahrts-Aktiengesellschaft (DELAG) wasestablished to control passenger flights from the company’s home base Frankfurt (Gunston, 1978).Bieger and Agosti (2005) developed a model of 4 stages that contains the evolution of theairline business and divides it into four components. the primary stage mentioned is termed technical stage andlasts till the start of world war II. In those early years traveling by air was rather appropriate foradventurers. The business was a supply side business and airlines creating profits might hardly befound. Stage two, known as political stage covers the institution of international rules,agreements and standards that were set for the transportation industry. vital technologicalachievements were created within the 1950s with the development of jet planes that enabled airlines tostart huge growth (Sheehan & Oclott, 2003). The airline business started putting additional emphasizeon quality and prices within the early 70ies. This third stage was additionally formed by the introduction of opensky policies, new services, pricing schemes and competitors coming into the market with new businessconcepts. The last stage, network and alliances, started within the 90ies with the introduction of low valuecarriers (LCCs) and also the method of forming alliances among already established carriers thatcompletely modified market conditions. In Europe new established LCCs like Ryanair or Easyjet tookadvantage of the liberated European skies and managed to successfully position themselves within themarket. At the same time several old-established full services carriers like Birtish Airways or AustrianAirlines faced  severe monetary issues. In 2002 Swiss Air who was famed for service excellencewas grounded, a situation that at that point nobody would have accepted for an established carrier.Swiss Air’s grounding however stressed the requirement for airlines, in spite of how long they werealready a part of the airline market, to adapt their business model to the ever-changing wants of consumers.Current developments show that traditional full service airlines need to face new competitors likeEmirates entering their home markets. how Emirates managed to successfully enter distinct marketsaround the world and continues to create profit is to be explored during this paper. Advances concerningInformation and Communication Technologies (ICT) played a vital role within the development of theairline business and are taken into consideration within the marketing and consumer behavior a part of thisthesis.

Categories: Industry


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