UK International Airline Industry: An Analysis of Market Structure

This report provides an analysis of the UK international airline industry, focusing on its market structure and the impact of Brexit. It identifies key players such as British Airways, EasyJet, and others, highlighting their strategies for providing quality service and meeting customer needs. The report examines the competitive landscape, including the power of suppliers and buyers, the threat of new entrants and substitutes, and the intensity of rivalry among existing companies. It also addresses the impact of Brexit, noting the challenges faced by airlines like EasyJet due to fluctuations in currency values. The conclusion emphasizes the diverse strategies employed by companies in the UK international airline industry to establish their brand and market presence.

UK International Airline Industry
Introduction
UK international airline services are the commercial
conveyance of customers between UK and the rest of the
world. It was established in the year 2005. There are several
companies under this industry like British airways, Easy jet,
Thomas cook airlines, jet2.com, TUI Airways, Virgin Atlantic
etc. Every company follows their own strategy they want to
provide highest quality of service to all customers, arrange
for latest technology and aviation, and meet customer
needs.
Market Structure
Figure 1: UK airline industry Market share
Source: (Google.co.in. 2018)
Impact of Brexit: Easy jets profit was succumbed after
the impact of BREXIT. Britain’s famous airline company
Easy jet has reported a major fall in profits after the
BREXIT. There was a 28% fall in the overall profit. There
was a strong impact due to fall in sterling. Like other
airlines company, easy jets base price was defoliated in
US dollars and Euros, while the highest slot of earnings
was through pounds. Despite these major fall in
economy, Easy jet sorted all the issues and carried 73
billion passengers and made profits of almost half billion
pounds.
Low Quality High Price High Quality High
Price
Low Quality Low Price High Quality Low Price
Price
Quality
British
Airways Jet2.
com
Easy
Jet
Power of suppliers (L): Traditionally, the bargaining power of
suppliers of airline industry is low, as the airline, companies cannot
easily switch suppliers. Maximum companies have long bonds
contracts with their suppliers.
Power of Buyers (L): The bargaining power of buyers is extremely
low threat in the airline industry. There are two types of buyers,
firstly those who buy tickets by their own, that can be for personal
or business purpose.
Threats of new Entrants (L): The threats from new entrants are
also low for airline industry. However there are two cases where
the threat level might increase first there are low costs involved,
secondly, there are no products or other services included.
Threats from substitutes (M): This industry has a medium risk level
of threats from substitutes; Customer might choose other medium
for transportation like bus, car, train etc. That might affect the
business of the airline services.
Rivalry among existing companies (H): The rivalry in the airline
industry among existing companies is very intense. The
competition reduces by brand identities, some companies are
identified for its brand and some for its low cost.
Conclusion
From this above research, it can be concluded
that The UK international airline industry is
comprised of many companies and each company
follow their own strategy to establish their brand
in the market.
Reference list
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