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1a.As the competition continues being intense between Boeing and Airbus in providing carriers that meet the global demand by the airlines, diversified carriers have been produced. Boeing has faced increased competition from Airbus since the 1970s and that has seen the family of aircraft expand (Campos, 2001). As of stoday, Airbus is competing in areas that were once the stronghold of Boeing. In 2003, Airbus delivered more planes than Boeing for the first time. In 2007, Boeing won more orders as compared to the Airbus (Hollinger, 2015).The A320 was selected by more than 222 operators and is now gaining ground as it is becoming popular among low-cost operators compared to the Boeing 737.
b.The business class passengers are accustomed to having a fully flat bed and those using the economy class have little to enjoy in the recent past. As the search for increasing the cabin density among the airlines continues, the economy class has seen more comfort with the introduction of wider seats that seem to generate more comfort as the passengers can turn and move their legs. (AirlineTrends)The Mexican carrier, on the other hand, has introduced the super diamond that has better specifications regarding offering larger space and more privacy and is similar to the airways found in Qatar such as 787s that offer live channels on a 18inch touchscreen on high definition screens. Airlines are ordering large crafts to accommodate the many specifications that cater for the needs of their passengers regarding space and privacy in some planes. The large seats in economy class require a large plane.
d.A myriad of challenges exist for the airline industry, for instance, there has been substantial pressure to improve operational efficiency, and thus financial performance has become a critical factor in defining the success of the airline. Airlines are becoming more radical about the business that they need to carry on and the routes to continue serving. Such choices depend on the understanding of the economics of the business and the desire to embrace ideas that are unconventional (Egon Management). In such an industry, there is the need for greater flexibility and adaptability of the business model to the dynamic needs of the market. The CEOs are thus tasked with the duty of transforming their enterprises into profitable businesses with long-term missions.
e.The above table shows the profitability of airlines declining as compared to other industries showing how the airlines are cutting down their prices with an aim of ensuring relevant and also due to the rising cost of fuel.
iii) The issue of discrimination is an ethical problem that faces most airline companies, and in most cases, the passengers are neglected. Prejudices occur in the stakeholder's groups as evidenced in one occasion in Hungary where one woman died after being denied two seats due to her size. The woman had diabetes and wanted to catch her plane home (Williams). However, she had been denied the seats on various occasions, and according to the husband, he claimed she died because she could not attend her medical treatment since she was declined on many instances.
AirlineTrends. (n.d.). Cabin/Seats. Retrieved October 8, 2017, from AirlineTrends: http://www.airlinetrends.com
Campos, L. (2001). On the competition between Airbus and Boeing. Air and Space Europe, 11-14.
Egon Management. (n.d.). Egon Zehnder - Global Passenger Airline Market: Five Megatrends and their Implications for Talent Management. Retrieved October 8, 2017, from Egon Zehnder: http://www.egonzehnder.com
Garsia, M. (2017, September 22). How the FAA keeps US airspace on track in a crisis. Retrieved October 8, 2017, from tnooz: http://www.tnooz.com
Hollinger, P. (2015, JUNE 12). Boeing and Airbus face mammoth task to clear order backlog. Retrieved October 8, 2017, from Financial Times: http://www.ft.com
Porter, M. (2008, January). The Five Competitive Forces That Shape Strategy. Retrieved October 8, 2017, from Harvard Business Review: http://hbr.org
Williams, T. (n.d.). Business Ethics for Airlines. Retrieved October 8, 2017, from azcentral: http://yourbusiness.azcentral.com
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