Career Academy of Texas Attractiveness of Industry Presentation I uploaded the essay consider reading it before you doing the slides because all the info t

Career Academy of Texas Attractiveness of Industry Presentation I uploaded the essay consider reading it before you doing the slides because all the info that you will use or write on the PowerPoint will be from the essay I provided. please I do not need any information from any other sources except the essay that I provide use a minimum font size of 24 and no more than five bullets slide.thank you Attractiveness of Industry
There is a lot of money to be made in the aviation industry, if you can get a solid
foundation built and compete with the highly competitive market airlines. The current issue with
this industry revolves around Covid-19 and its impact on air travel. The virus pandemic has
absolutely shattered the flying business, as a lot of people are scared to be in such tight quarters
with someone else for an extended period of time. Exhibit B represents the drop in global traffic
growth as impacts from the Coronavirus became more pronounced in early 2020 (Global Airline,
Pg. 7). If someone was going to try and enter this industry right now, they would have an
extremely hard time filling up their aircraft, and they would have an even harder time trying to
show people why they should utilize their brand-new airline over one of the “proven” airlines.
This is why over the years many of the key players like Southwest and American Airlines have
not closed, nor have they seen a considerable loss of customers to new market entry airlines.
Environment Factors
The main factor that currently impacts this industry is Covid-19. The Covid-19 pandemic
has greatly impacted air travel in all sectors of the industry. Consumer confidence in the industry
as a whole has absolutely gone way down (Exhibit C). There was a massive decline, that is
predicted to slowly start to come back this year pending the pandemic does not get worse than it
currently is. Coronavirus has changed the way market leaders think about moving people from
one place to the next. There have been new regulations that fill planes to a certain capacity, just
to help people social distance and stay as safe as possible when traveling. One other factor we
must consider falls into the legal category of a PESTEL analysis, making sure that all of your
employees are qualified and stay qualified to be a part of your staff is a key component in staying
“legal” in the aviation industry. Pilots are especially important, because there are several tests
and regulations they must stay current with.
A potential opportunity is that people will almost always need to utilize air travel. We are
at a point in research and development where cars and trains can only go so fast safely, so
aircraft fill a niche in a way to move people as fast as possible from point A to point B. The
opportunity in this environment lies with always trying to find out where people need to travel.
Often times you will see airlines cancel certain routes and then announce a new route from one
city to the next. They offer these routes because they see a potential opportunity in offering them
to the public. For example, Pre Covid-19, Southwest airlines announced that it was releasing 10
new routes in the summer of 2020 (The Points Guy, 2019). These are some of the opportunities
available in the industry.
Industry Analysis: Firms
There are several airlines in the domestic portion of the industry, and they have a very
small spread amongst the market share. Exhibit D shows the key players in airline industry,
along with their accompanying market share. As we can see, the main airline in the United States
is Delta with a 17.6% market share, followed closely behind by American Airlines with a 17.5%
market share. This goes to show just how competitive the market really is. There is a competitive
advantage that could be achieved by each airline in the form of rewards programs, but because
market share is so close together, there is no discernable advantage any of these companies have
over the other. If there was, we would see a larger spread in market share because the people
using the service (airline) would start to use the one with the competitive advantage more than
the one without the competitive advantage. The market share spread between the top 4 firms is a
mere 2.8%, which is extremely small. The top four airlines in the U.S. and their market shares
are as follows: Delta with 17.6%, American Airlines with 17.5%, Southwest with 16.7%, and
United with 14.8%. One interesting thing to note is the earnings per share at yea rend in 2019.
United came in with the highest of the top 4 domestic airlines at 11.58 per share (exhibit F).
Delta posted a solid 7.30, American had a 3.79, and Southwest finished 2019 with a 4.27
(Exhibits E and F).
Conclusion
The aircraft industry is always changing, even more so with the current climate. Airlines
will continue to fight to stay afloat in America, as well as around the world. The industry is
struggling, but should make a comeback as long as the Covid-19 situation starts to fall off. One
thing is for certain, we will certainly always look at the way we fly from here on out.
Exhibits
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Sources
Bombardier CRJ 700. (n.d.). Aircraft
Compare. https://www.aircraftcompare.com/aircraft/bombardier-crj-700/
June/July 2019 specials on 737 type ratings. (2020, May 15). Airline Pilot Training
Located in Kissimmee, FL with courses in A320,
B737. https://aerostartyperatings.com/type-rating/b737-open-house-specials/
Bloom, L. B. (2019, September 29). Ranked: The best and worst airlines in America in
2019.
Forbes. https://www.forbes.com/sites/laurabegleybloom/2019/05/02/rankedthe-best-and-worst-airlines-in-america-in-2019/#51ec03b95342
Southwest adds 10 new routes in summer schedule rollout. (2019, December 11). The
Points Guy. https://thepointsguy.com/news/southwest-airlines-adds-10-newroutes-in-summer-schedule-rollout/

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