Question

Provide an analysis regarding the threats in the Airline industry. Using the industry analysis completed to this point, prepare a thorough list of threats in the industry. For example, a strong competitive rivalry would be a threat in the industry. Be sure to explain why each is a treat to the industry.

Answer 1

Answer:

THREATS IN THE AIRLINE INDUSTRY

1. Volatile geopolitical environment

Whenever there is any kind of instability in the market or an economic slowdown takes place due to political tensions in the government and its operations, aviation industry does get affected. Hence, volatility in the economic environment is a majot threat.

2. Management of supply chain

Keeping in mind the rising demand, it is very important to take care of supplies of aircrafts, for if there is any delay in delivery or any quality issues, it can prove to be a major threat in the aviation sector as it would cause a chian reaction and lead to a shortfall of supply of aircrafts.

3. Competition in national and international market

There may be threat of entry from new competitors or the old ones who come up with better technology. For example: The new sensor technology in the avaition sector could be a threat.

4. Work force shortages

It is important to retain talent in the aviation industry and the shortage of skilled workforce to cope up with technological changes and upgradation in this sector could prove to be a major threat to the airline sector.

5. Multiple regulations and restrictions

Another threat could be the inability to comply with all the restrictions and regulations of commercial airline sector which may include  aircraft design, maintenance, pilot training activities and safety regulations, etc.

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