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Running head: AVIATION INDUSTRY OVERVIEW

Aviation Industry Overview
Student’s Name
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AVIATION INDUSTRY OVERVIEW
Aviation Industry Overview
Introduction

The aviation industry is one of the prominent industries in the globe where it has
undergone major changes in the past few decades. The industry is one of the most profitable
industries due to the prestige and services that it offers. Some of the driving forces of the
aviation industry include legal factors, technological factors, legal and cultural factors. These
driving forces determine the different aspects and characteristics. The aviation industry
operates in an oligopoly market that is controlled by a few companies especially due to the
various barriers that exist for new investor's entry. It is an industry that has a greater
component of technology (Segal, 2018). From the aircraft to flight management and also the
utilization of services, the industry has seen a great deal with technology.
Thesis statement: The aviation industry is likely to undergo different changes and
transformation in the next few years. These changes are partly predicted due to the past
changes and also the nature of the market and expectations of the industry. Some of these
changes include an increase in customers hence a higher percentage of seats are filled in
planes and higher sales of tickets. As an aviation management student, all these will greatly
affect me.
Analysis
Aviation industry possible changes in 20-30 years
In recent years, one of the major changes is that the industry has seen much
competition and its nature have made it hard for airlines to maintain and keep customers. One
of the characteristics that the consumers in this industry is usually price sensitive which has
made the cost of traveling lower. Some few characteristics of the industry a few years ago are
that competition has increased as the environmental factors have encouraged the entry of

AVIATION INDUSTRY OVERVIEW

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other companies in the industry. The industry was also not very common in the past until a
few decades when it has become popular and especially in developing countries.
Some of the major changes that may happen in the next 20 years are that competition
in the industry will increase (Spicer, 2018). The competitive environment will allow
consumers to use airline services more and will also allow airline investments to become
more common. The competition not only good for the consumers but it will also improve the
services provided such as the facilities, prices, services and also total quality management.
The competition will also increase government revenue through the tax collected. The tax
collected can be used to develop and improve the infrastructure of the country.
Another change that will be introduced by competition includes innovation, expansion
of services and also increases in customer options due to increased customization services. In
explaining this, the government has always regulated the aviation industry. The different
regulations inclu...