How faulty business policies shrink air travel market survival of airlines

Faulty business policies can indeed contribute to the shrinking of the air travel market and the survival of airlines. Here are some examples:

1. Lack of flexibility in pricing: Airlines that adopt a rigid pricing strategy, without considering market conditions, may struggle to attract customers. For instance, if an airline sets a fixed price for a route without considering demand fluctuations, it may end up with unsold seats, leading to revenue losses.
2. Inadequate route network planning: Airlines that fail to optimize their route networks may struggle to attract passengers. For example, if an airline operates multiple flights on a route with low demand, it may lead to reduced passenger numbers and increased costs.
3. Insufficient investment in technology: Airlines that fail to invest in digital technologies, such as mobile check-in, self-service kiosks, and online booking platforms, may struggle to provide a seamless passenger experience, leading to decreased customer satisfaction and loyalty.
4. Poor customer service: Airlines that prioritize cost-cutting over customer service may experience decreased passenger loyalty and retention. For example, if an airline reduces the number of check-in counters or eliminates complimentary amenities, passengers may choose to fly with competitors.
5. Inadequate risk management: Airlines that fail to manage risks, such as fuel price volatility, currency fluctuations, or natural disasters, may struggle to maintain profitability.
6. Lack of data-driven decision-making: Airlines that fail to leverage data analytics to inform their business decisions may struggle to optimize their operations, leading to reduced efficiency and increased costs.
7. Inadequate fleet planning: Airlines that fail to plan their fleet effectively, including the type and number of aircraft, may struggle to meet passenger demand, leading to reduced revenue and increased costs.
8. Poor partnerships and alliances: Airlines that fail to form effective partnerships and alliances may struggle to share resources, reduce costs, and increase passenger reach.
9. Inadequate talent management: Airlines that fail to attract, retain, and develop top talent may struggle to maintain a competitive edge, leading to decreased operational efficiency and increased turnover.
10. Lack of adaptability to changing market conditions: Airlines that fail to adapt to changing market conditions, such as shifts in passenger demand or competition, may struggle to remain relevant and competitive.

Some specific examples of faulty business policies that have contributed to the shrinking of the air travel market and the survival of airlines include:

• Ryanair's fare wars: Ryanair's aggressive pricing strategy, which involves constantly reducing fares to attract passengers, has led to a decline in average fares and reduced revenue for the airline.
• Delta's hub-and-spoke model: Delta's traditional hub-and-spoke model, which involves concentrating flights at major hubs, has led to reduced connectivity and increased costs for passengers.
• United's merger with Continental: United's merger with Continental Airlines led to reduced competition and increased fares, which has contributed to a decline in passenger demand.

By avoiding these faulty business policies and adopting more effective strategies, airlines can increase their chances of survival and success in the competitive air travel market.