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By Andreas Wittmer (auth.), Andreas Wittmer, Thomas Bieger, Roland Müller (eds.)

This booklet goals to supply finished insurance of the sphere of air transportation, giving awareness to all significant features, corresponding to aviation rules, economics, administration and procedure. The ebook methods aviation as an interrelated economy and in so doing offers the “big photo” of aviation available in the market economic system. It explains the linkages among domain names equivalent to politics, society, expertise, financial system, ecology, legislation and the way those impression one another. Examples of airports and airways, and case reviews in each one bankruptcy help the application-oriented method. scholars and researchers in enterprise management with a spotlight at the aviation undefined, in addition to pros within the seeking to refresh or expand their wisdom of the sector will reap the benefits of this e-book.

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Extra resources for Aviation Systems: Management of the Integrated Aviation Value Chain

Sample text

1 Manufacturing Industry and Suppliers The aircraft manufacturing industry is characterized by two dominant manufacturers: Boeing and Airbus. These two companies represent the only manufacturers on the market (Newhouse 2007), particularly regarding wide-body aircraft. These two players as well as smaller manufacturers such as Bombardier and Embraer play a role for small to medium-sized aircraft (up to about 150 seats). Profit margins of aircraft manufacturers are commonly higher than those of airlines and airports, however, when compared to the total manufacturing industry, they are below average (Doganis 2005).

As mentioned before, the political process of deregulation is significantly different to the one in the US (Nijkamp 1996). The European Union is a collective of sovereign states which makes deregulation to a process of negotiation. Due to differing interests of various states, deregulation was only slowly implemented. The majority of states had a governmentally funded flag carrier and an infrastructure they wanted to protect. These national interests were reasons for the gaps in deregulation pointed out earlier.

The impacts of deregulation on the American market have been assessed in countless studies and have been discussed controversially. In the following, the decisive effects for the airlines (supply) as well as for the consumers (demand) are presented. Supply Especially the deregulation of prices in conjunction with the reduction of entry barriers led to fierce price pressure through new market entries for existing airlines. Therefore, in the first 8 years after the abolition of regulations, 200 new airlines were founded.

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