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...90s. ... An Analysis of the European Airline Industry Changes in the Industry Environment and Structure since 1992 Grant (1991) suggested that it was vital for the firm to understand three things – its customers, its suppliers, and its competitors – which constitute its industry environment. After deregulation of the airline industry in 1992, the increase in air travel providers as regulative barriers to entry were reduced resulted in the industry environment undergoing considerable changes. ... Up until the start of deregulation, the industry had seen a steady increase in the number of air travellers. This increase became more pronounced after deregulation, with the entry into the industry of additional airlines. The aggressive marketing strategies employed with the entry of the budget airlines into the industry, and the fall in prices as airlines tried to capture the expanding leisure travel sector, stimulated interest in air travel among customers who would ordinarily not have considered travelling. Prior to deregulation, the business travel sector had been more attractive to the national flag carriers, with organizations less price conscious with regard to air travel than the leisure traveller funding their own travel. The business travel sector of the market was therefore the most attractive to the traditional airlines. After deregulation, the leisure travel sector was also targeted, primarily by the budget airlines but closely followed by the national airlines in response to the added competitive pressure. ... The increasing numbers of airlines after deregulation also led to increasing competition among industry suppliers, namely aircraft manufacturers and the airports providing landing slots. ... For any airline wishing to expand, ownership of take-off and landing slots at these airports was vital. With the growing air travel industry filling slots in the more popular airports, such as London’s Heathrow and Gatwick, new entrants were forced to look elsewhere for slots, and ‘out of town’ airports such as Stansted and Luton had to be considered. By using only one type of aircraft, the Boeing 737, budget airlines were able to develop a partnership with one of their main suppliers. ... Competition within the industry increased as the number of air tr...