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er option but Boeing 747. (Manuel, 2008). Boeing and its only rival air bus are highly affected by the global recession. Both of them cut the wide-body plane production. They are facing worst possible crisis in decades. Their market shares has fallen down, many employees has lost their jobs. Many airlines have cancelled their order. The most interesting fact is that, previously many of airline customers been compensated for production delay, now they are being forced to negotiate for late delivery because the recession hits the industry. (Airwise, 2009). Global distribution system (GDS) is integrated to airline industry, more then one billion air bokking 250 million for hotels, non-air content and cruises has been processed by GDS and generated over 6 billion dollars in revenues. Now they are also very much concered about consumers changing behavior which has effected by global recession.(Mintel, 2006). Presently air travelers are looking for other substitutes to fulfill their requirements which are more cost effective, available and reasonable.

The availability of substitute products and the threat of substitutes are another factor that can affect airline industry. As far as the customer concerned, the substitutes are the alternative products that perform essentially the same function. The substitutes of airlines include buses, trains, ships, and private transports. If the airline marketer decide to charge high then the customers have the options to switch over the substitute products which are comparatively cheaper. (Bennett & strydom, 2001). Along with the other substitutes, the most effecting issue for the air travel is electronic methods of communication. In the present recession, company has reduced business travels. Instead of business travel company has introduced teleconferencing and video conferencing. Because of the electronic methods business travelers are travelling less. Instead of sending urgent documents by air, people are more comfortable to send via email which affects the air freight industry. .( Stephen, 2007). Between the year 2003 and 2007 the faster growing mode of domestic transport in the United Kingdom is railways. In Europe the cities are connected as like spider nets by the high speedy train. (Ian & Britton, 2009). On the other hand, Short-haul cruise is another option for the consumers. In 2008 1.5 million cruise holidays were taken and it increased 20% was ever greater.(Mintel, 2009). Tough airline industry is saturated, it is also difficult for the new entrants to get into the industry. New entrants might have to overcome from the obstacles.

Barriers to entry is one of the forces describe by poter’s which refers the new competitors entering the industry and reducing the profits of the established companies. The competitive equilibrium of the existing players may disturb by the new entry. ( Stephen, 2007). Today in the airline industry, there is hardly space for the newcomers to enter because of the saturated market and deregulation of the airline industry. The main problem to entry is the cost. during the recession period, the new entrants are discouraged to enter into one of the world most expensive industry. In order to enter into airline market newcomers need to think about buying and leasing aircrafts, man power, security safety mattres and customer service.( Robert, (2006).?Other barriers to entry which are affecting newcomers t本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。