# data[].attributes.body
Deregulation of the Airline Industry, In America 1978, In EU there were liberalisation rules that came in to place in 1992/3 In 1997 the Airlines are deregulated. Since then it is much more easier for budget airlines to operate within, EU and US. While big national airlines struggled through the price changes and deregulation. Airlines such as PanAm went in and out of bankruptcy. Mostly it is an oligopoly, at least in the early days of the air travel.

# data[].attributes.body
- High capital requirement
- High technical skill requirement
- High laws and regulations

Effective use of technology & by products

Large scale production --

Economies of scale

Overbooking -- no show
price nesting
off peak pricing
CASM = taking all of the airlines operating expenses and dividing it by the number of seat.

# data[].attributes.body
Aviation Industry is growing-by the day. between 2016 and 2017 it grew by 6.3%, from 747 billion $ to 787 billion $.  Also, to give just an idea about how big an airline company can be, American Airlines carried 198 million passenger alone in 2016.  These stats gives a glimpse how big the market is. There are also small players in the market, compared to big national or privatised airlines, which are called "budget airlines" these are relatively cheaper to national airlines. Also, it is vital for cross border manufacturers to ship their parts via air travel, and estimated 6.9 Trillion $. Turkish Airlines profited net  175M$ during 2017.  While pegasus compared to Turkish airlines a smaller company, has a net profit of 138M$. In comparison to Train travel, if we take eurostar as basis, which reported 58M$ net profit, air travel seems to be a more profitable business model.

# data[].attributes.body
In the expanding world of air travel, with competitive prices it is harder for companies to lure in consumers. However, there are certain ways companies attract their customers. One of them is their loyalty programs. in other words their frequent flyer programs, as you fly more and more with your selected air company, you will ascend in the ranks. This allow you to have free upgrades and occasionally but tickets with your reward points. Although even this alone doesn't attract most of the customers, thus most of the companies use social media such as instagram to promote themselves and sell their tickets for cheap prices. These days consumers tend to choose airlines with the lowest fare, the trend shows that budget airlines such as Pegasus, easyjet and Ryanair are among the most preferred airliners due their low prices.

# data[].attributes.body
During 2017 & 2018 season it is expected oil prices will rise due to opec. Rising costs and intense competition are the two most common challenges highlighted by airline executives. Airport slot restrictions or the lack thereof is another. In Addition to the facts stated above, there are other problems for budget airlines. For example Russian airspace is, closed for any budget airline and, for a very high cost, is open for nationally owned airline companies. Moreover, buying aircraft and changing aircrafts is also a problem for some airlines as buying large aircrafts are not that profitable any longer. For example, it is hard for airlines to fill in business class seats thus, they want to fill in more of economy class. However, it is hard for the airlines because, there are not many aircrafts that can fly long range transatlantic that are small. Airbus is building a new plane that is small but can fly transatlantic. this will change the game.

# data[].attributes.body
There is an increasing competition, between airlines as mentioned before. The main problem is filling the business seats of an aircraft as they are worth much more in pricing than the economy seats. However, budget airlines face different problems as they do not offer business seats. They have to find more creative ways around the pricing so they can be competitive and be profitable. Another competitive issue is the destinations and airport slots. The more destinations you fly the better. In order to do that you must have the appropriate aircraft fleet, capital and must comply with laws and regulations within the countries you fly to.

# data[].attributes.body
A record-breaking 246.1 million passengers are choosing air travel this summer because they understand there’s never been a better time to fly.
The airlines have a vested interest in providing the best possible service to passengers. The largest airlines are, as they have always been, competing with each other every day. Couple that with the emergence and popularity of smaller, primarily low-cost carriers and ultra-low-cost carriers and it is plain to see there is no shortage of competition. Analysis conducted by economists at Compass Lexecon shows that the state of nationwide airline competition has intensified in recent years, with more – not fewer – choices when traveling from one city to another. This positive trend is alive and well as a wide array of carriers are ramping up competition and entering even more markets, helping to keep fares low while providing more options for passengers. Simply put, the market is working, and the industry is more competitive than it has ever been.
Operating in a very competitive space is good for the airline industry, and it’s good for consumers. Enabling multiple players to compete fosters airline investment in everything from new aircraft to new technology and amenities to improving nation’s airports.