Global Airlines, Xerfi

Description

Commercial airlines provide scheduled air transportation of passengers and cargo on domestic, regional and intercontinental air routes. Airlines also often generate additional revenues from ancillary activities related to air transport, such as maintenance and repairs, catering and travel-booking services. […]
Major airlines include full-service carriers (FSCs) such as Lufthansa, Delta Airlines or Air France-KLM, and low cost carriers (LCCs) such as Southwest Airlines or Ryanair. FSCs usually join global airline alliances (Star Alliance, SkyTeam, Oneworld) for high levels of cooperation, while LCCs’ success is based on a leaner and highly cost-efficient business model. [...]

Market deregulation and liberalisation have intensified competition among leading carriers and enabled the emergence of the highly competitive low cost business model. Although FSCs and LCCs both keep specific competitive advantages and do not yet compete on the same market segments, competition between these two models will re-shape the industry over the coming decade. [...]
Main airline hubs remain concentrated in industrialised countries, yet global transit traffic is increasingly moving through large hubs in emerging regions. As both demand and supply will continue to grow faster within rapidly developing emerging countries, the industry’s centre of gravity will shift to these markets.

- Who are the key players?

Major airlines include full-service carriers (FSCs) such as Lufthansa, Delta Airlines or Air France-KLM, and low cost carriers (LCCs) such as Southwest Airlines or Ryanair. FSCs usually join global airline alliances (Star Alliance, SkyTeam, Oneworld) for high levels of cooperation, while LCCs’ success is based on a leaner and highly cost-efficient business model. [...]

Companies analysed in the report include:

LUFTHANSA GROUP, DELTA AIRLINES, AIR FRANCE KLM, JAPAN AIRLINES, UNITED AIRLINES, EMIRATES, BRITISH AIRWAYS, SOUTHWEST AIRLINES, CHINA SOUTHERN AIRLINES, RYANAIR.

- How intense is competition?

Market deregulation and liberalisation have intensified competition among leading carriers and enabled the emergence of the highly competitive low cost business model. Although FSCs and LCCs both keep specific competitive advantages and do not yet compete on the same market segments, competition between these two models will re-shape the industry over the coming decade. [...]

- What are the main markets?

Main airline hubs remain concentrated in industrialised countries, yet global transit traffic is increasingly moving through large hubs in emerging regions. As both demand and supply will continue to grow faster within rapidly developing emerging countries, the industry’s centre of gravity will shift to these markets.