Main Airline, Airport, and Engine Manufacturers in Aviation

This article provides an overview of the main airline, airport, and engine manufacturers in the aviation industry. It discusses different types of competition structures and their advantages and disadvantages. It also explores the importance of using KPIs and benchmarks in improving performance. Additionally, it compares the benchmarking criteria of two aviation companies and explains the reasons for differences in performance.

Airport

Table of Contents
INTRODUCTION...........................................................................................................................3
ESSAY 1..........................................................................................................................................3
Main airline, airport, engine manufacturers of commercial, regional, private and military
sectors of aviation........................................................................................................................3
Different types of competition structures....................................................................................4
Advantage and disadvantages of all structures of competition...................................................5
ESSAY 2..........................................................................................................................................6
What is KPIs/benchmarks............................................................................................................6
Stages of benchmarking...............................................................................................................6
Reasons of using benchmarking..................................................................................................7
Comparison of benchmarking criteria of 2 organizations...........................................................7
Reasons of differences in performance........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Aviation is one of the main sector and airline companies are those who provide air
transport services to travelling passengers (Reicher and Birchall, 2017). It also known as an
operating licence issued by a governmental aviation body. This present study is being divided
into 2 part, part 1 and part 2. Essay 1 is going to show all features, processes and characteristics
of main airline, airport and engine manufacturers in all private, commercial and regional sectors.
Further, it will also show all types of competitive structure in order to select the best one and
making organizations and customers beneficial. Essay 2 will show importance of using KPIs or
benchmark as how it allows companies in taking competitive advantages.
ESSAY 1
Main airline, airport, engine manufacturers of commercial, regional, private and military sectors
of aviation
Airline: It refers a sector of organizations which provide public services of air transport on either
one or more routes. There are several top and well known airlines including: British Airways,
FlyBe, Easy Jet etc. In the context of British Airways it can be said that it is the flag carrier
airline of the UK and known as the 2nd largest airline in the UK (Airways, 2017). The main city
in which it focuses the most is New York-JFK. It is a founding member of the one world airline
alliance. In addition, Easy jet is British low cost airline group which operates both domestic and
international schedule services. It operates in more than 30 countries along with around 1000
routes.
Airports: In this context, it can be said that London has the highest population and also is known
as the main attraction in the country so, it has around 6 big airports. Heathrow is one of the big
business airports in the UK which serves travellers passengers for domestic flights. In addition, it
can be said that Manchester airport is an international airport (Yildirim and Villupuram, 2017)
It was counted in major well known airports and also known as 3rd business airport in the UK in
terms of passenger numbers. It covers around 560 hectares area.

Engine manufacturers: There are several popular engine manufacturers worldwide which
include: Caterpillar, Hyundai etc. In the context of Caterpillar it can be said that it is an
America fortune 100 corporations (Silver and Shull, 2018). It is specialises in designing,
developing and manufacturing engines, sales machineries as well as financial products. It is
known as the World’s largest construction equipment manufacturers. It serves its products and
services worldwide. Hyundai heavy industries are other main shipbuilding and engine
manufacturing company. It is known as the world’s largest company in this sector. It is enjoying
its reputation in the market and has also taken up to 35% of the world’s market shares in diesel
engine.
Military aviation: Military aviation means using of military aircraft for the main aims of
enabling aerial warfare capacity to provide logistic supply. It is being divided into many parts
such as: Bombers, experimental aircrafts, Maritime patrol Aircraft etc.
Different types of competition structures
Competition can be defined as an activity or a situation of winning something by defeating
others by creating superiority. There are mainly 2 types of competition structure such as perfect
and imperfect.
Perfect v imperfect: It refers a concept occur in economics in which market structures are fully
controlled by market forces. When all these forces are met then it is called perfect and when
these forces are not met then the market is recognized as imperfect competition. In addition, it
can also be said that a market where several firms offer homogenous products is known as
perfect competition (Mahoney and Weyl, 2017). On the other hand, in a market where there are
several sellers but all offer heterogeneous products is known as imperfect competition.
There are some examples of imperfect competition structure which include:
Monopoly: It is a type of imperfect competition structure in which only one seller is available in
the market. A one provider in a market who offer certain economic services or goods for which
there is no substitute exists. It has several barriers of entering in the market. Firm has power of
changing prices as per their requirements without prior notice to customers.

Oligopoly: In a market where few sellers of products offerings are available. It is a market which
is dominated by few producers with having several buyers of products and all of them have
control over the market. Some examples of such type are: cell phone companies, tire
manufacturers etc. All firms in this market set prices for products collectively (Bilbiie, Ghironi
and Melitz, 2019).
Monopolistic: It is one of the main complex markets of imperfect competition because in this
type, many sellers are available with offering differentiated products. It can be found in real
world markets such as clusters of sandwich bars, fast food shops, hairdressers in local areas etc.
Advantage and disadvantages of all structures of competition
Both perfect and imperfect competition structures have some advantages and disadvantages
which are discussed below:
Perfect
 One of the main advantages of such kind of markets is it allocates resources for making
an effective use.
 It encourages efficiency in the market.
 Consumers are being charged lower prices as compare to imperfect (Algieri, Aquino and
Succurro, 2018).
 Lack of product varieties is one of the main disadvantages of this market.
 Lack or insufficient profit as compare to imperfect for investment.
Imperfect
 Companies can impose higher prices which allow them to generate profit.
 There are several barriers as other companies find difficulties to enter in this market by
which existing companies can have control.
 They all have possibilities of sharing products because in oligopoly companies set prices
collectively.
 On the other hand, in such imperfect competition, government intervenes create several
problems.

 If companies set higher prices or disproportionately, then they have more chances of
losing customers.
ESSAY 2
What is KPIs/benchmarks
Key performance indicator refers a tool by which companies can measure their
performance in all manners and can identify that how well their people, processes and company
is performing against goals (Franco Jr and et.al., 2017). By doing so they can identify their actual
position in the business and see all areas of improvement for taking competitive advantages.
Benchmarking is just like KPI it refers a process by which companies can compare their own
performance, processes with other companies or competitors is known as benchmarking. There
are some common areas of comparing which include: quality of products and services, costs,
customers’ satisfaction and taken time in completion of processes.
Stages of benchmarking
There are 5 stages of benchmarking or comparing performance of an organization with others
such as: Planning, analysing, integration, action and maturity.
Planning: For an effective benchmarking it is important to make an effective plan and
identifying functions of an organization to benchmark. Selecting all top class organization to
compare processes and identifying organizations in that function. Selecting performance measure
is other main requirement in planning along with identifying data collection (Georgopoulou and
et.al., 2019).
Analysing: In this step, it is important for companies to collect all data either internally or
externally or both. After collecting data they need to compare performance of organizations and
also identifying the best practice to close gap.
Integration: Communication all findings and developing action plan as per the analysis for
making improvement.
Action: Implementation of all actions and monitoring progress is one of the main stage of
benchmarking

Maturity: Closing performance gap and integrating practices into processes is the last stage of
making benchmarking process successful. With the help of benchmarking theory all these
processes or stages can be completed in an effective manner.
Reasons of using benchmarking
There are several reasons of using benchmarking by companies. Different companies
have different purposes but here are some common reasons of all companies of making an
effective use of benchmarking which include:
 It allows companies in improving their overall performance by comparing processes with
others. They can make changes in their processes and strategies accordingly.
 An effective benchmarking allows companies to motivate their staff in a right direction
and encourage them to increase their productivity (Hansen, 2019).
 Understanding intensity of competition in the market can also be possible with
benchmarking.
 Increasing both efficiency and effectiveness is other main reasons of using
benchmarking.
Comparison of benchmarking criteria of 2 organizations
There are 2 main aviation companies who make an effective use of benchmarking and by
comparing companies (Boeing and Airbus), reasons, and effectiveness of performance can be
identified. Boeing is the largest global aircraft manufacturer and aerospace in the world. In the
context of this company it is analysed that it makes an effective use of competitive
benchmarking which allow it to know its actual position in the market as well as become market
leader in the market (The Boeing Company: Competitive benchmarking Analysis, 2009). With
competitive benchmarking it analyses Revenue Share by Business Segments, Competitive
Positioning, and Comparative Financial Performance Analysis etc.
On the other hand, in the context of Airbus it is found that it uses integral and non linear
benchmark. The main reasons of this company of using non linear benchmark are to reduce
workload by manual validation of flight domain protection. In addition, integral benchmark
allows this company to manage high orders of state space representation and managing

continuous validation processes. By analysing all these it manages to improve its services
(Airbus Benchmark, 2010).
Reasons of differences in performance
By comparing benchmarking process of Boeing and Airbus it can be said that both
companies’ uses this in an effective manner but still, Airbus is better than Boeing in some areas.
There are some reasons between performances of both companies. In some areas like revenue,
financial performance and others Airbus is known as one of the best and one of the main reason
is skilled workforce and way of using benchmark. It focuses both non linear and integral which
allows it to cover all areas and rather focusing more on other companies it focuses on its
customers and try to satisfy them.
CONCLUSION
On the basis of above discussion it can be concluded benchmarking or key performance
indicators’ tool played a vital role in analysing actual position of the company as compare to
competitors. It also allows them to take competitive advantages and accomplishing all goals by
making improvement accordingly. Further it has also shown activities, purposes and
performance of main airline, engine manufacturers and airport craft manufacturer. It has also
discussed different types of competition structures in order to identifying and selecting the best
one for making beneficial to both buyers and sellers.

REFERENCES
Books and Journals
Airways, B., 2017. British Airways. Where we fly.[online] Available at: https://www.
britishairways. com/travel/where-we-fly/public/en_gb/map [Accessed 13 November
2017].
Algieri, B., Aquino, A. and Succurro, M., 2018. International competitive advantages in tourism:
An eclectic view. Tourism management perspectives. 25. pp.41-52.
Bilbiie, F.O., Ghironi, F. and Melitz, M.J., 2019. Monopoly power and endogenous product
variety: Distortions and remedies. American Economic Journal:
Macroeconomics. 11(4). pp.140-74.
Franco Jr, J.G. and et.al., 2017. Key performance indicators score (KPIs-score) based on clinical
and laboratorial parameters can establish benchmarks for internal quality control in an
ART program. JBRA assisted reproduction. 21(2). p.61.
Georgopoulou, C. and et.al., "Benchmarking of model-based systems engineering tools for the
performance assessment of marine energy systems." 2nd International Confencee on
Modelling and Optimisation of Ship Energy Systems, 8-10 May 2019, Glasgow,
Scotland, United Kingdom. 1-8 (2019).
Hansen, N., 2019, July. A practical guide to experimentation (and benchmarking).
In Proceedings of the Genetic and Evolutionary Computation Conference
Companion (pp. 594-613).
Mahoney, N. and Weyl, E.G., 2017. Imperfect competition in selection markets. Review of
Economics and Statistics, 99(4), pp.637-651.
Reicher, J. and Birchall, D., 2017. Safety of working patterns among UK neuroradiologists: a
comparison with the aviation industry. Clinical Radiology. 72. p.S11.
Silver, R. and Shull, B., Caterpillar Inc, 2018. Compression ignition engine system with
improved regeneration via controlled ash deposits. U.S. Patent 9,863,298.
Yildirim, Y. and Villupuram, S., 2017. A big dilemma: Airport noise and property value. The
Journal of the Acoustical Society of America. 142(4). pp.2636-2636.
[Online].

The Boeing Company: Competitive benchmarking Analysis. 2009. Available through:
<https://www.researchandmarkets.com/reports/1054000/the_boeing_companycompetitive_bench
marking>
Airbus Benchmark. 2010. Available through:
<http://www.cofcluo.isy.liu.se/COFCLUOworkshop/Puyou-benchmark.pdf>