Comprehensive Report on the Airline Industry: Operations and Prospects

This report provides a comprehensive overview of the airline industry, beginning with its historical roots and evolution from government-owned entities to privatized operations. It details the four main categories within the industry: cargo, regional, national, and international, highlighting their respective revenue generation and operational focus. The report identifies the airline industry as an oligopoly, characterized by significant barriers to entry and intense price competition, as seen in the Australian domestic market. It further classifies airline customers into internal (employees) and external (passengers), segmented by class of seating. Addressing employment prospects, the report acknowledges the increasing opportunities for flight mechanics, pilots, and dispatchers, particularly in Australia and Dubai, while emphasizing the stringent selection criteria and the importance of skills and aptitude beyond mere license possession. The report concludes by noting the availability of resources to assist potential candidates in enhancing their skills and professionalism to improve their job prospects in this high-income industry.

Running head: AIRLINE INDUSTRY 1
THE AIRLINE INDUSTRY
Name
Student ID
Institutional Affiliation

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.

AIRLINE INDUSTRY 3
Airlines industry markets
The airline industry is arguably an oligopoly, which exists when small groups of firms
control a market due to an entry barrier which is considerably large enough to discourage
competitors who intend to enter into the market (Gerardi & Shapiro, 2009). Over the past five
years, for example, Australia’s domestic airlines have been subjected to unstable conditions of
trade. Intense competition for price between Virgin Australia and Qantas has highly affected the
performance of the industry. Through 2013-2014, the two airlines slashed airfares significantly,
with an attempt by Qantas to hold off Virgin Australia’s aggressive push of expanding its market
share.
Airlines industry customers/clients
Airline customers are classified into two categories consisting of internal and external
customers. The internal customers are general staff working within the organization and like to
travel to different geographical areas. They include managers, receptionists, air hostesses and
engineers. The external customers are other passengers who are not working with airlines such as
business travelers, tourists, and students. Class of seating such as first class, business class, and
economy class segments both internal and external customers.
The employment prospects like and barriers in Airline industry
The reality is that holding a good professional certificate does not automatically
guarantee employment with the airline industry in Australia and Dubai even if there are open
vacancies. According to Wu, Cheng & Ai (2018) the career outlook for the airline industry in
Australia and Dubai has increased by 3% with more opportunities for flight mechanics, pilot and
dispatcher being available. The future of employment in the industry is still opening up with

AIRLINE INDUSTRY 4
startup and existing airlines promising to recruit more graduates to scale up their operation.
However, the airline industry in Australia and Dubai is keen on selection criteria, as it wants the
right person for the job but not just a license holder. Goldsmith (2010) once stated that “Airlines
with positive reputation better they fail to recruit no one than a person with the wrong aptitude,
attitude and a license.” Furthermore, passing flight skills tests and multi-crew co-operation and
theory exams are very hard although it is something with is achievable by many if they invest
high in education, money and time. To be successful in the airline industry after getting a license,
one needs to have a deep understanding of the types of person the airline is looking for and this
is not just operating an aircraft (Cowper-Smith & de Grosbois, 2011).
Many people who are seeking employment in the airline industry have desirable criteria
but fail to perform as expected at airline assessments and interviews. However, the industry has
different companies like freight deck friend that assist the potential candidates to improve their
skills, develop their professionalism, and boost job prospects. Therefore, candidates who like to
join this high-income industry in Australia and Dubai need to put more efforts on their education
and gain relevant skills the industry still offers more opportunities.

AIRLINE INDUSTRY 5
References
Wu, H. C., Cheng, C. C., & Ai, C. H. (2018). An empirical analysis of green switching intentions
in the airline industry. Journal of Environmental Planning and Management, 61(8),
1438-1468.
Goldsmith, M. (2010). What got you here won't get you there: How successful people become
even more successful. Profile books.
Cowper-Smith, A., & de Grosbois, D. (2011). The adoption of corporate social responsibility
practices in the airline industry. Journal of Sustainable Tourism, 19(1), 59-77.
Gerardi, K. S., & Shapiro, A. H. (2009). Does competition reduce price dispersion? New
evidence from the airline industry. Journal of Political Economy, 117(1), 1-37.
Morrison, S., & Winston, C. (2010). The evolution of the airline industry. Brookings Institution
Press.
Shaw, S. (2016). Airline marketing and management. Routledge.