28 Oct 2022

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The Critical Stakeholders in the Airline Industry and How the User Data Can Be Advantage in the Industry

Format: APA

Academic level: College

Paper type: Research Paper

Words: 2943

Pages: 11

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Introduction 

The airline industry is one of the dynamic sectors that focus on the provision of air transport services. The production utilizes aircraft to provide the air transport services for both the traveling clients and for freight. In recent years, the industry has faced a significant growth and development based on the fact that it has become a lucrative venture for investments. The growth of the airline industry has led to the establishment of various airline companies in multiple regions across the globe whose focus is to provide world-class air transport services. The airline companies within the industry vary based on the nature of services they provide considering that some focus on domestic travels while others extend their services to the international platform. Based on the quality of services provided in the air transport, the industry has capitalized on creating essential rules and regulations that govern the industry as part of enhancing security and safety measures for the traveling passengers and cargo. The paper will focus on analyzing the critical stakeholders in the airline industry and the how the user data to enhance their competitive advantage in the industry. 

Industry overview 

The industry analysis will reflect on some of the key aspects associated with the industry with the critical focus being towards evaluating some the essential dynamics that define this industry. Considering the dynamism of the sector, some factors influence the nature of operations and services provided by the industry. The primary focus of the industry entails maintaining active activities that enhance growth and development of the industry and capitalizing on keeping a competitive advantage (Bigne, Andreu, Hernandez, & Ruiz, 2018). The stakeholders in the industry play a significant role in promoting the nature of operations undertaken and enhance the profitability of the sector. 

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Main Players in the Industry 

When evaluating the airline industry, one of the critical aspect to consider is the leading players in this industry, who play a central role in define the overall structure of the industry, as well as, reflect on the global possibilities of improvements. Some of the key players to consider include: 

Airplane Manufacturers 

Airplane manufacturers play a critical role in the success of this industry believe that they are responsible for the designing and manufacturing of aircraft that meet specific industry expectations. The leading role of these manufacturers in this industry is to help in the introduction of new technologies in the industry through the aircraft that they provide to their clients. Most of these manufacturers tend to focus much of their attention on some of the key expectations from their clients, who are airline companies to act as a determinant of the overall structure of the industry. Some of the notable manufacturers of aircraft used by a majority of the airline companies around the world are Airbus and Boeing. 

Airline Companies 

Airline companies also play a central role in defining the overall levels of success for the industry, as they play a central role in the movement of people and cargo within different locations. Airline companies act as critical stakeholders in this industry attributed to their role in ensuring that they create concrete structures that allow passengers to move from one location to another using aircraft ( Morrell, 2005 ). The companies operate within airports around the world from where they can define the overall viability and validity of this industry. The airline companies help towards identifying the changing dynamics in the industry considering that they deal with clients having varied needs and expectations. 

Governments 

Governments are critical stakeholders in the airline industry considering that they help towards investing in efforts by other players with the sole intention of improving overall outcomes in the industry. One of the key aspects to note is that airline companies operate within different jurisdictions controlled by various governments, thus, meaning that they must abide by the laid out policy structures. On the other hand, governments are mandated with the sole responsibility of ensuring that they maintain expected security structures within this particular industry as a way of building that positive avenue for the success of the industry (Bigne, Andreu, Hernandez, & Ruiz, 2018) . In airports, governments invest in security structures with the aim of protecting the passengers moving through these airports to other parts of the world. Thus, this highlights the role of the government towards defining the success of the airline industry. 

How is the industry doing? 

The focus of this section is to analyze the industry thoroughly to determine the overall movement of the sector regarding performance and life cycle. 

Industry Life Cycle 

A review of the airline industry’s life cycle, one of the key aspects to note is that the industry has evolved significantly within the last few decades towards becoming one of the most lucrative industries. One of the essential elements to note when evaluating the industry's life cycle is the commercialization of the sector, which has occurred within the last few decades where more commercial airline companies have invested in the industry ( Morrell, 2005 ). That has meant that more people are using this particular mode of transport as part of their daily routines and activities. Another critical aspect to note when evaluating the industry's life cycle is on innovation taking note of the fact that the industry has experienced a notable increase in its change, which has been of value towards promoting overall efficiency in the industry. 

Dying or Rising? 

Since the invention of the airline industry, the demand for this type of transport has been on the rise with more and more people using this mode of transportation, as it is not only one of the fastest way of transport, but it is also among the safest methods of traffic in the world today. The industry has also experienced a steady increase in investment whereby investors are coming into this industry considering that it has positioned itself as one of most viable avenues for investment. According to the latest International Air Transport Association (IATA) figures, the airline industry has built itself towards becoming a trillion dollar industry, thus, highlighting its overall capacities regarding growth ( Zins, 2001 ). From that view, it becomes essential to take note of the fact that the airline industry is rising significantly. 

How are data used industry wide? 

The data collected through different methods are used for two primary purposes. Firstly, the data is used to evaluate industry needs regarding innovation and technology. As the industry progresses, the demand for innovation and technology has also increased significantly, thus, creating the need for having to use data collected to determine some of the critical approaches to take in a bid to improve the industry. Secondly, data is used in evaluating the safety element of the production considering that the individual players in this industry seek to ensure that they maintain the expected safety standards of the industry. The long-term effect that this has had is that it has helped project commercial as being one of the safest modes of transport in the world today. 

Where is the industry going? 

When evaluating the current structure of the industry, as well as, investments made to the industry, one of the key aspects to take note of is the fact that this industry is working towards positioning itself as a leading hub for investment. Economists argue that the airline industry is working hard towards ensuring that it maintains that positive outlook regarding performance ( Kucukusta, Denizci Guillet, & Chan, 2016 ). Additionally, it is also evident that the industry is on the verge of achieving commercial viability considering that the industry has experienced a significant increase in the number of people using this mode of transport. 

How do they develop the industry? 

The development of this industry is solely through the incorporation of innovation and technology whereby the sector has experienced a significant increase in the demand for innovation and technology as a way of ensuring that it develops towards becoming an essential industry. Through change, airline companies have been able to ensure that they provide their clients with that element of safety, as well as, comfort. Aircraft manufacturers tend to experience the urge to improve on their designs considering that this would be of value towards ensuring that their plans meet international standards and market expectations Kucukusta, Denizci Guillet, & Chan, 2016 . 

Will the industry continue as it has in the past? 

Based on the analysis of the airline industry, it is evident that the airline industry has been on a steady path towards ensuring that it maintains that element of growth, which has not only been of value towards building the industry's success but has also helped towards ensuring that the sector continues some form of performance outcomes ( Zins, 2001 ). However, moving forwards, industry players have laid out essential strategies that seek to improve the performance of the industry. Thus, this means that the production is expected to experience an acceleration regarding its growth margins and performance. 

Individual Companies 

Delta Air Lines 

Delta Airline is an American company that engages in extensive domestic and international operations. The company whose headquarters are Atlanta, Georgia was founded in 1924 as a crop dusting operation company. The company participated in the crop dusting operations until 1929 where it began flying passengers to various local destinations. The company engaged in various air transport services that led to the growth and development of the company to being of the leading airline companies in the United States. Delta Airlines invested in the provision of quality services as one of the factors that contributed to their growth in the industry. The company underwent various cabin upgrades as part of enhancing the cabin operation services provided to the growing number of clientele. In recent years, the company has focused on venturing into international operations by reaching out to all the continents and creating a global brand that can provide quality services. The company capitalizes on the implementation of effective strategies that help the company to remain competitive and profitable in the industry (Kumar, 2008). The approach entails diversification, proper financial management, practical research to obtain information regarding the needs and wants of the potential and current clients. 

Considering that the airline industry has its difficulties based on the nature of challenges presented, Delta Airline Company has capitalized on proper methodologies to gather and analyze data, which is relevant for effective running of the company. The company has invested in advanced data collection and analysis as a primary element that helps in understanding the parameters of the airline industry. The first type of data gathered by the company entails the clients. The potential and existing clients in any business venture play an integral role in the development of the business. Delta Airline Company uses the customers' data to understand the needs of the customers in a bid to help in improving the services to the given needs. The second type of data entails the market trends in the airline industry and the competitors' information. The big data is essential to Delta Airline Company as it helps in understanding the weak areas that require improvements and identify the vital regions that should be capitalized in a bid to ensure profitability and dominance in the industry (Kumar, 2008). To gather the data, Delta Company implements various data collection methods such as surveys that focus on engaging the customers in providing the required information. Additionally, the company participates in different sampling techniques as part of gathering the bid data. 

Upon gathering data, the company undertakes proper analysis to ensure relevance and reliability of the given data. The results from the study indicate that the company can engage individuals in providing information which is relevant in enhancing the nature of operations undertaken by the company during the provision of air transport services. The company uses the data to achieve a competitive advantage through the analysis of their strengths and the competitors' weaknesses to capitalize on measures that may help in bettering their operations (Kumar, 2008). Considering that the company invests in active data collection, the company has never been involved in data breaches as it ensures that proper data protection measures are put in place. In cases where the company requires more detailed information regarding a particular aspect, the company uses outside consultants to help in gathering a wide range of data. Unlike other companies, Delta Airline uses onboard interviews that help in understanding the actual customer reactions regarding the nature of services provided. 

JetBlue Airways 

JetBlue Airways Corporation is considered as the sixth-largest airline company operating within the United States. The airline, founded in 1998, works towards ensuring that it provides its clients with the best quality of flying experiences, which has been of value towards improving the company's capacity to compete within the airline industry. The company has been able to build its position based on its ability to offer low-cost flying to its clients moving within different states. According to the company's performance, JetBlue Airways operates within 110 destinations in the United States, Mexico, Canada, and South America. One of the critical elements that JetBlue Airways has used as a tool towards distinguishing itself from other airlines is in-flight entertainment (Flouris & Walker, 2005). According to the management, the crucial focus for the company is to work towards "bringing back humanity to air travel." 

The primary data that the airline collects is on customer satisfaction with the principal focus being on ensuring that it works towards providing that the experiences that clients have to match their set out expectations. The data on customer satisfaction is essential to the airline considering that this determines the overall perception that clients tend to have when focusing on their experiences in the airline. JetBlue Airways works towards ensuring that it projects a positive experience, which is essential in ensuring that it maintains that particular structure of the performance. JetBlue Airways gathers its data solely from customer surveys conducted using questionnaires that passengers are given immediately they board a JetBlue Airways aircraft and are expected to fill it out during travel and submit the same after their trip for analysis. 

Based on the company's response of the data provided, one of the key aspects to note is that the airline has seen a significant increase in the satisfaction levels among its clients, which has been attributed to a considerable improvement in the quality of services offered. The company uses the data collected to evaluate customers’ expectations from where it becomes much easier for the management to make effective decisions focusing on building its competitive advantage. Since its founding in 1998, JetBlue Airways has not experienced any instances of data breaches with the company investing heavily in data security. The company has invested in a secure network as a way of reducing the possibility of data breaches, which may have important impacts on the company’s corporate image. The company uses outside consultants especially on matters of data security and IT infrastructure, which has been of value towards maintaining the expected security structure (Flouris & Walker, 2005). Regarding data collection, JetBlue Airways is similar to other airline companies considering that other airlines use the same data collection mechanism as part of understanding their clients. 

Qatar Airways 

Qatar Airways are one of the largest airline companies that engage in the provision of air transport services and other cabin operation in significant parts of the world. The company, which is based in Doha, Qatar was established in 1993 and began its operations in 1994. Over the years, the company has focused on the expansion of its primary activities thereby creating a network that helps in linking over 150 international destinations across the world. The company has an extensive employee base that assists in ensuring effective delivery of quality services to its clientele. The company has invested in owning more aircraft to assist in enhancing the operations undertaken by the company as part of maintaining a competitive advantage in the airline industry (Samuel-Azran & Assaf, 2017). To better the services and their activities, the company has capitalized on investing various strategies that include research and development, which helps in providing an overview of the market and the customers. 

The company focuses on obtaining data regarding their customers, the market trends, the competitors and the employees' information. Customers' data is crucial in Qatar Airways as it helps in ensuring that the company understands the needs of the customers in a bid to make the necessary improvements regarding the meeting of the given needs. Market trends data allow the company to focus on ensuring that the nature of services provided is in a position to meet the international standards defined within the industry. The employees' information allows the company to address various factors that may act as a hindrance to effective delivery of quality services to the clients. The company implements multiple data collection techniques that entail interviews to engage the given stakeholders in airing out their grievances and issues. The use of big data in the given company helps in ensuring that the company meets the expected stands by maintaining profitability in the industry. 

The company uses the given data to obtain a competitive advantage by taking advantage of the competitors’ weaknesses and capitalizing on their strengths. The company reflects on the general expectations of its clients with the sole focus being on ensuring that it understands some of the critical approaches that its competitors are taking as part of their business structure. Since its founding, Qatar Airways has not experienced any instances of data breaches attributed to its investment in data security as part of ensuring that it builds its capacity significantly (Samuel-Azran & Assaf, 2017). The company incorporates the use of consultants in the data collection process, as well as, in its security structure analysis. 

Conclusion 

In summary, the airline industry is one of the dynamic sectors that focus on the provision of air transport services. The airline companies within the industry vary based on the nature of services they provide considering that some focus on domestic travels while others extend their services to the international platform. Some of the notable manufacturers of aircraft used by the majority of the airline companies around the world are Airbus and Boeing. Airline companies act as critical stakeholders in this industry attributed to their role in ensuring that they create concrete structures that allow passengers to move from one location to other using aircrafts. Governments are critical stakeholders in the airline industry considering that they help towards investing in efforts by other players with the sole intention of improving overall outcomes in the industry. The airline industry has built itself towards becoming a trillion dollar industry, thus, highlighting its global capacities regarding growth. 

References  

Bigne, E., Andreu, L., Hernandez, B., & Ruiz, C. (2018). The impact of social media and offline influences on consumer behaviour. An analysis of the low-cost airline industry.  Current Issues in Tourism 21 (9), 1014-1032. 

Flouris, T., & Walker, T. (2005). Confidence in airline performance in difficult market conditions: An analysis of JetBlue's financial market results.  Journal of air transportation 10 (1), 38-57. 

Kucukusta, D., Denizci Guillet, B., & Chan, H. L. (2016). The Effect of CSR Practices on Employee Affective Commitment in the Airline Industry.  Journal of China Tourism Research 12 (3-4), 451-469. 

Kumar, K. (2008). Delta-Northwest Airlines: A strategic merger.  ICFAI Journal of International Business 3 (4), 59-74. 

Morrell, P. (2005). Airlines within airlines: An analysis of US network airline responses to Low Cost Carriers.  Journal of Air Transport Management 11 (5), 303-312. 

Samuel-Azran, T., & Assaf, I. (2017). Was Sky News softer on Qatari affairs due to Qatar Airways’ sponsorship of Sky weather reports? An empirical analysis.  Critical Studies in Media Communication , 35 (2), 1-16. 

Zins, A. H. (2001). Relative attitudes and commitment in customer loyalty models: Some experiences in the commercial airline industry.  International Journal of Service Industry Management 12 (3), 269-294. 

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StudyBounty. (2023, September 16). The Critical Stakeholders in the Airline Industry and How the User Data Can Be Advantage in the Industry.
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