Impact of COVID 19 and Brexit on Airline Industry

Impact of COVID 19 and
Brexit on Airline Industry

Abstract
This report provides an overview of various Market Structure, they are Perfect
Competition, Monopoly, Monopolistic Competition and Oligopoly. Market structure represents
the pricing and nature of goods in Market. Furthermore, this report consist a discussion and
analysis of Market Structure of UK's Airline Industry. Due to Brexit and COVID 19 Airline
Industry have faced many problems in their functioning of business, they have faced a severe
loss. In this project an Impact of Brexit and COVID 19 on Airline Industry has been discussed
and the Economic factor of UK that could create an impact on Airline Industry also Explained.

Table of Contents
INTRODUCTION...........................................................................................................................3
Discussion and Analysis..................................................................................................................3
The Various Market Structure.....................................................................................................3
The Market Structure of UK's Airline Industry..........................................................................4
Economic Factor of UK and how it will affect EasyJet..............................................................4
Impact of Brexit on EasyJet's Business in UK............................................................................7
Impact of COVID 19 on EasyJet................................................................................................8
Conclusion.......................................................................................................................................9
Recommendation.............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In 2020, A disease occurred due to which people were falling sick and the death rate were
increasing, this virus was named as COVID 19 (Bas and Sivaprasad, 2020). The virus has
created a huge impact in the life of people. The businesses and Industry faces heavy loss due to
this disease, the whole world was in lock down and people were facing heavy loss of income.
The report was based on negative impact of COVID 19 on airline Industry (Gallego and Font,
2020). Aviation had faced many challenges such as decline in demand, closures of airlines,
reduction of fleets, and numerous people were suspended. Brexit had also created a huge decline
in the profit of airline Industry (Rosamond, 2019). It is a situation in which United Kingdom
wants to get separate from European union. They want to establish their own regulation policy of
trading. The Chosen airline EasyJet also faced problem due to virus such as cancellation of
flights, expenses, employees lay out, no income source, etc. In this report the discussion and
analysis is based on market structure of UK Airline Industry. The Various Economic Factor of
UK which can affect the business of Easyjet and how Brexit and COVID 19 have created an
impact on their business (Merkert and Swidan, 2019).
Discussion and Analysis
The Various Market Structure
Market is a place where products are purchase by the buyer and sell by seller. But In
economies, Market meaning is different they consider it as a whole area where purchaser and
sellers are spread for exchanging their commodities. Market Structure generally means a
characteristics of market that finds out the nature and pricing policy of product (Brueckner and
Flores-Fillol, 2020). The Market structure are categorised in various forms they are as follows-
 Perfect Competition-
Perfect Competition is a market structure in which there are large number of buyer and
seller engaged in Homogeneous product without any restriction and perfect knowledge of
Market.
 Monopoly-
In Monopoly Market Structure there is only one seller that controls the entire market.
They can set the prices and customer have no choice to pay for the set price by seller.
 Monopolistic Competition-