UK Airline Industry Research
Size and Scope of the industry
The UK airline industry is quite large. In general, it has a tendency towards growing, especially regarding the number of terminal passengers and cargo tonnage. The number of terminal passengers is growing since 2010. In 2011, there were about 210 million passengers, and in 2013, their number increased to about 225 million. In 2015, it reached about 240 million (Aviation Trends Quarter 1 2016, 2016). In terms of commercial flights, industry is growing as well. For example, in the UK, there were about 2.1 million flights in 2012 and about 2.2 million in 2015 (Aviation Trends Quarter 1 2016, 2016). By cargo tonnage, the industry is quite stable its volume has been about 2.5 million tons from 2011 till now (Aviation Trends Quarter 1 2016, 2016). In terms of total revenues, they were about ?790 billion in 2013 (UK Civil Aviation Authority, 2015).
Growth rate
The growth rate of the UK airline industry is significant. Concerning the number of passengers, the industry is growing. For instance, the growth rate of passengers number was about 4% in 2011 and about 8% in 2016 (Aviation Trends Quarter 1 2016, 2016). Regarding the number of commercial flights, growth is present, but it is not as significant as for passengers. In particular, growth rate was about 1% in 2011 and 2% in 2016 (Aviation Trends Quarter 1 2016, 2016). For cargo tonnage, growth rate has been quite stable during the recent years, and it equals to about 10% (Aviation Trends Quarter 1 2016, 2016).
Key players
In the UK aviation industry, key players can be determined by the number of passengers and by operating revenue. By the number of passengers, top companies are Easyjet, British Airways, Flybe and Monarch Airlines (Statista, 2016). If to speak about total revenues, top companies are British Airways, Easyjet, Virgin Atlantic Airways and Thomson Airways (Statista, 2016).
Market shares by competitors
Market share for competitors in the airline industry can be determined by their revenues and number of passengers. By the number of passengers, the largest market shares are possessed by Easyjet (about 43%), British Airways (about 31%), Flybe (about 6%) and Monarch Airlines (about 5%) (Statista, 2016). By total revenues, the largest market shares belong to British Airways (about 45%), Easyjet (about 18%), Virgin Atlantic Airways (about 10%) and Thomson Airways (about 9%) (Statista, 2016).
Key customers
Key customers in the airline industry include different groups because air travelling is becoming more and more popular globally. The age structure is likely to spread. For example, British Airways offer special propositions and services for children who are travelling by their jets alone ( British Airways, 2016). Thus, the number of children among passengers may grow in the future.
Key services
In the UK airline industry, key services include flights for passengers and cargo.
Five forces diagram
Rivalry among existing competitors: it is quite high because there are many airline companies in the UK, and their services are similar.
Bargaining power of customers: it is relatively high. If customers want new services or better quality, company should satisfy them, or they will choose another airline company to travel.
Bargaining power of suppliers: it is high as well because prices for goods and services, provided by suppliers, influence ticket prices.
Threat of substitutes: it is relatively low as travelling by air has many benefits compared to the other forms of transportation.
Threat of new entrants: it is quite high because airline companies from the other countries can enter the market.
About the author: Sharlotte Scott is a master in Literature at Maryland University. She is currently working as one of the best writers at https://superbessay.com/buy-response-paper/ She also studies male psychology.
The UK airline industry is quite large. In general, it has a tendency towards growing, especially regarding the number of terminal passengers and cargo tonnage. The number of terminal passengers is growing since 2010. In 2011, there were about 210 million passengers, and in 2013, their number increased to about 225 million. In 2015, it reached about 240 million (Aviation Trends Quarter 1 2016, 2016). In terms of commercial flights, industry is growing as well. For example, in the UK, there were about 2.1 million flights in 2012 and about 2.2 million in 2015 (Aviation Trends Quarter 1 2016, 2016). By cargo tonnage, the industry is quite stable its volume has been about 2.5 million tons from 2011 till now (Aviation Trends Quarter 1 2016, 2016). In terms of total revenues, they were about ?790 billion in 2013 (UK Civil Aviation Authority, 2015).
Growth rate
The growth rate of the UK airline industry is significant. Concerning the number of passengers, the industry is growing. For instance, the growth rate of passengers number was about 4% in 2011 and about 8% in 2016 (Aviation Trends Quarter 1 2016, 2016). Regarding the number of commercial flights, growth is present, but it is not as significant as for passengers. In particular, growth rate was about 1% in 2011 and 2% in 2016 (Aviation Trends Quarter 1 2016, 2016). For cargo tonnage, growth rate has been quite stable during the recent years, and it equals to about 10% (Aviation Trends Quarter 1 2016, 2016).
Key players
In the UK aviation industry, key players can be determined by the number of passengers and by operating revenue. By the number of passengers, top companies are Easyjet, British Airways, Flybe and Monarch Airlines (Statista, 2016). If to speak about total revenues, top companies are British Airways, Easyjet, Virgin Atlantic Airways and Thomson Airways (Statista, 2016).
Market shares by competitors
Market share for competitors in the airline industry can be determined by their revenues and number of passengers. By the number of passengers, the largest market shares are possessed by Easyjet (about 43%), British Airways (about 31%), Flybe (about 6%) and Monarch Airlines (about 5%) (Statista, 2016). By total revenues, the largest market shares belong to British Airways (about 45%), Easyjet (about 18%), Virgin Atlantic Airways (about 10%) and Thomson Airways (about 9%) (Statista, 2016).
Key customers
Key customers in the airline industry include different groups because air travelling is becoming more and more popular globally. The age structure is likely to spread. For example, British Airways offer special propositions and services for children who are travelling by their jets alone ( British Airways, 2016). Thus, the number of children among passengers may grow in the future.
Key services
In the UK airline industry, key services include flights for passengers and cargo.
Five forces diagram
Rivalry among existing competitors: it is quite high because there are many airline companies in the UK, and their services are similar.
Bargaining power of customers: it is relatively high. If customers want new services or better quality, company should satisfy them, or they will choose another airline company to travel.
Bargaining power of suppliers: it is high as well because prices for goods and services, provided by suppliers, influence ticket prices.
Threat of substitutes: it is relatively low as travelling by air has many benefits compared to the other forms of transportation.
Threat of new entrants: it is quite high because airline companies from the other countries can enter the market.
About the author: Sharlotte Scott is a master in Literature at Maryland University. She is currently working as one of the best writers at https://superbessay.com/buy-response-paper/ She also studies male psychology.
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