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The Airline Industry’s Competitive Environment 3.0 The Threat of Entry 3.1 • In order to enter the industry a high capital investment is required. Realistically an organisation would need to have sufficient funds to invest or would need to diversify from there current market into the budget airline industry. • In the U.K. airport are extremely over crowded. This has led to fierce competition for runway bookings. A new airline in the industry may find it difficult to book enough slots to perform efficiently. This will increase as the ‘single European sky’ policy comes into affect. • The budget airline industry in the UK is over crowded. New entrants experience severe difficulties and either experience bankruptcy or are brought out by larger companies. This creates a major deterrent. • New EU countries could set up in the east in countries such as Turkey.
Approximate Word count = 526
Approximate Pages = 2.1
(250 words per page double spaced)
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