SCHEDULED PASSENGER AIR TRANSPORTATION INDUSTRY INDUSTRY CODE: 48111 IKEMEFUNA NZOIWU

INDUSTRY OVERVIEW History of the industry dates back to 1925 with the passage of Air Mail Act Required pilots to have minimum flying experience to be able to carry mail for the USPS Prior to this time there was no government regulation Air Commerce Act passed in 1926 regulated route certification, tariffs, and rates

INDUSTRY OVERVIEW Increased manufacture and sale of airplanes resulted in a need for a governing body to coordinate, direct, and implement regulations to control air transportation. Led to Civil Aeronautics Act of 1934 which created the Civil Aeronautics Board CAB had the responsibility of regulating civil aviation and investigating aviation mishaps which were on the rise at the time. Some of the first airlines carrying passengers were TWA and Continental airlines.

Competition and Trends in the Airline Industry Currently, the three major airlines carrying passengers are, United, Delta, and American Airlines They enjoy oligopoly of the market through machineries that direct rates and costs of running business The dollar size of the Airline industry statistical figures suggest an excess of 700 billion dollars Aviation industry grows at a compound annual growth rate of around 7.4 percent, reaching 783 billion U.S. dollars in 2014 Growth in revenue has been attributed to seasonal trends, cyclical variations and forecasting techniques that predict travelers’ behaviors

Competition and Trends in the Airline Industry Seasonal trends indicate that people travel more frequently during holidays like Easter, spring break, summer vacations, Christmas Airlines lower their prices around these seasons to accommodate more passengers. Airlines also encourage travelers to plan their trips way ahead by giving lower fares to customers who buy tickets months in advance of their flights

Negative Trends People became reluctant to travel because of fear The airline industry suffered great losses after the September 11, 2001 terrorist attacks in the United States People became reluctant to travel because of fear Stricter government regulation Transportation Security Administration (TSA) created in 2002 From 2001 to 2008, airlines lost billions of dollars and had to reinvent marketing strategies such as flying points and customer loyalty points

Industry Developments and New Regulations Airports have introduced many Explosive Detection System (EDS) machines, X-ray technology, biometrics, and Trace detection equipment to deter terrorists Airline Deregulation Act of 1978 dismantled the requirements that airlines first seek regulatory approval to serve any given route which caused incumbent airline operators could raise barriers to the challenge of new competition This was done to foster healthy competition in the industry Airline Industry continues to grow despite setbacks and continues to be profitable for the conveyance of passengers and cargo Fastest and most reliable mode of transportation presently because of regularly scheduled flights