Airline Industry Problem Solution Essay

Business research is a methodical investigation that furnishes information to direct managerial decisions. More explicitly, it is a procedure of planning, acquiring, examining and distributing pertinent data, information and insights to decision makers in means that activate the organization to take suitable actions that, in turn, increase business functioning. In present, an assortment of different types of research projects is known as business research. Here, in this project paper the business research selected is related with Future Airline Industry.

The basic aim of the selected business research project is to identify the prominence of mergers and acquisitions for the Airline Industry in the future. This research emphasizes on the fact that whether these two will be suitable business choices for the airline companies in the future or either one of them or both together will be suitable options for this business in future (Iatrou & Oretti, 2007). The ‘cross border mergers’ and ‘strategic alliances’ are the main focus of the undertaken business research.

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Another prominent purpose of this business research is to emphasize on the benefits of mergers & acquisitions for the Airline Industry. Business Problem under Investigation The business problem discussed in this research is the identification of the benefits of mergers and strategic alliances so that the importance of these strategies’ can be identified for airline industry. This research also deals with drawing important conclusions about the future of the Airline Industry. It is focused on the aviation business and the usefulness of merger and strategic alliance for it (Airline Industry, 2009).

It also focuses on the condition of the Airline Companies all over the world so that an overall knowledge of the Airline Industry, as well as, about mergers and strategic alliances can be attained. In addition to this it also deals with the analysis of prevalent types of merger and alliance options available and their feasibility for the industry. Parties involved in the Research The research undertaken involves numerous parties as it is for the beneficial of all the present and potential industry players.

This business research includes prominent industry consultants and industry leaders so that some peculiar judgements can be made in regard to industry benefit. All the parties involved in the research, concentrates on the prominence of mergers & acquisitions in regard to airline industry. Method used to conduct the Research Project In this business research project, the most prominent methodology used to carry out the research is “Literature Review”, which includes article written by Chang and Hsu, report prepared by tae Hoom Oum and other facts and figures along with previously undertaken studies in this regard.

The article used for this research provides the information about the development of the Airline Industry and the differences in the airline strategies, such as mergers and strategic alliances. This methodology assist in identifying that the ownership rules of the industry have changed and many Airline Companies are adopting strategies for attaining their goals and objectives in the competitive market place.

This article assist industry players in identifying that the de-regulation in the transport market has increased the reorganization of the Airline Companies in the domestic, as well as, the universal market for increasing the market potential (Chang & Hsu, 2005). In addition to this, the report prepared by Tae Hoon Oum provides information about the attributes of global strategic alliances and the role of Canadian Airlines in enhancing the network through strategic alliances. The report provides the data about the increase in the number of strategic alliances between Airline Companies.

It shows that this strategy has assisted the companies in increasing their productivity and profitability by reducing their pricing. It has resulted into the enhancement of the market ratios; as well the shares and customer ratio (Oum, 2001). The impact of strategic alliances on the inter-continental traffic routing in North America covering the continental market share of global Airline Industry is also discussed. The report also provides information about the role of Canadian Airline Industry in improving the worldwide network of airlines and improvement in the economic concerns of the Canadian consumers, as well as, carriers.

Global networking in the long run traffic expelling has become possible in the Airline business due to the de-regulation of markets. The regulatory issues concerned with the international markets are also considered by the Researcher in the report, which help use in identifying that it is essential for the Airline Companies to coordinate with the international regulations for acquiring aviation markets at the international level (Oum, 2001).

This methodology facilitates that for becoming successful and effective in the marketplace, it is essential for the Airline Companies to manage the competitive force and attain sustainability in the financial matters of the industry and that can be done effectively by adopting appropriate strategies’ (Airline Industry, 2008). References Airline Industry (2009). Retrieved February 12, 2010, from http://www. economywatch. com/world-industries/airline/ Airline Industry (2008). Potential Mergers and Acquisitions Driven by Financial and Competitive Pressures. Retrieved February 12, 2010, from http://www. ao. gov/new. items/d08845. pdf Chang, Y. C. & Hsu, C. J. (2005). Ally or merge-airline strategies after the Relaxation of ownership rules. Proceedings of the Eastern Asia Society for Transportation Studies, 5, 545 – 556. Iatrou, K. & Oretti, M. (2007). Airline Choices for the Future: From Alliances to Mergers. Ashgate Publishing Ltd. Oum, T. H. (2001). Key Aspects of Global Strategic Alliances and the Impacts on the Future of Air Canada and other Canadian Air Carriers. Retrieved February 12, 2010, from http://www. reviewcta-examenltc. gc. ca/CTAReview/CTAReview/english/reports/oum. pdf


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