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o come into the airline industry are the high cost to develop new airlines and government restrictions, airline alliances, landing slots. Most of the slots are being booked by the major airlines.(Darin, 2006) . there are certain Marketing strategies which make the things extremely tough for the other airlines to attract traffic. The elements of the strategies include frequent flier plans, code sharing partnership with commuter carriers, commissions paid to travel agent and computer reservation systems. As a result the airfares goes up and dominant’s carriers make their position protected by operating such barriers. (Dian, 1996). But there are rivals who can take the competitive advantage over others by reducing cost, introducing new routs.

Competitive rivalry describes the competition among the existing firms, in order to get competitive advantage over their rival organization. Each firm try to establish their brand and reputation in order to strengenth their position over the chief rivals.( Nancy et al, (2008:73).Firms also can use of a several range of actions to get competitive advantage such as price variations, withdrawal or entry into new market, more tactical, more strategic. In the airline industry is charecterised by the cut-throat competition and such competition is immense. In the USA it has started in the early 1990s then in the EUROPE. Now it can be seen all over the world.( Werner, 2005, in Werner,Herbert,Stefan & Sascha, 2005). Europe’s third biggest airline British airways disclosed a record of full-year loss which is hit by the recession. This is the biggest loss since BA was privatised in the year 1987. Long-haul airlines are struggling more than short-haul airless.(Airways, 2010). On the other hand, at the same time Europe’s biggest short-haul low cost carrier Ryan air has increased their market shares and posted the profits of the year 2010 is 500 million pound.(Airways, 2010). Again, the biggest airline in the Europe Lufthansa is greatly affected by the global economic crisis and has posted their net loss for the year 2010 is 112 million euro. (Airways, 2010). During the sustainable recession, customers are more interested to shor-haul airlines rather than long-haul airlines. And short haul-airlines are keep expansioning their market all over the Europe.(Mintel, 2009)

References.

Anthony (2009) press releases IATA:?Loss Forecast Increases to US$9 Billion. [Online]?

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Mintel (2010).Holidays - Attitudes and the Impact of Recession - UK - January 2010. [Online]
IATA (2003). Airports and Air Traffic Control Must Reduce Costs.[Online]
Michael E. Porter (2008).on competetion. Harvard: Harvard Press.
Michael A. Hitt, R. Duane Ireland, Robert E. & Hoskisson (2009).?Strategic management: competitiveness and globalization : concepts & cases. 8th edn. Belmont: cengage.
John, G.w. (2007).Air Transportation. 6th edn. Hampshire: Ashgate.
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Michael A. Hitt, R. Duane Ireland, Robert E. & Hoskisson (20