The Airline Industry: Operations, Markets, Customers, and Employment Prospects

Running head: AIRLINE INDUSTRY 1
THE AIRLINE INDUSTRY
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AIRLINE INDUSTRY 2
Airline industry
The airline industry operates in a very competitive market and is still expanding as it has
expanded its routes both globally and domestically. In the beginning, the government partly
owned the airline industry, although privatization in the industry has taken place over the recent
years. The first airline industry, DELAG (Deutsche Luftschiffahrts-Aktiengesellschaft), was
started on 16 November 1909 through the assistance of the government. Headquartered in
Frankfurt, the Zeppelin Corporation was the first airship manufacturer (Shaw, 2016). The five
airlines that were the first to be started and still exist today are Mexican Airlines in Mexico,
Czech Airlines in the Czech Republic, Qantas Airlines in Australia, and Avianca Airlines in
Columbia, and the KLM Airlines in the Netherlands.
Operations of airline industry
The airline industry operates in four main and different categories which are the cargo,
regional, national, and international categories. According to Morrison & Winston (2010) the
international category generally takes passengers around the world and generates the highest
revenue of over $1 billion. Additionally, the national category can take up to 150 passengers and
generates a revenue of around $100 million - $1 billion. Furthermore, the regional category
comprises of small companies focusing mainly on flights with quick halts. The revenue for the
business category is less than $100 million. The main focus for the cargo category is for the
transportation of goods.