Task 1

1. Key issues influencing future industry growth (TEMPLES)

Factors Issues Nature of impact Impact on future industry growth
Technology

Influence aircraft design to reduce turnaround time & passenger density, especially for long-distance routes in order to reduce costs and increase efficiency.
New technologies like online booking, flight software Positive

Positive Low / Medium

low
Economic Global Financial Crisis exploded in 2008. The world economic recovery is still facing uncertainties. Negative Medium
Market Declining trend in terms of older-style, full-service airline demands. Customers are more price-sensitive. Negative Medium The Asian market is really growing compared with the stagnant markets in North America and Europe. Positive Medium
Politics Asia is not at a stage in terms of a common single market and is subject to different restrictions in different countries. Negative Low / Medium
Law Very complex in terms of cross-border ownership laws. Negative Low / Medium
Society An ongoing trend for greater environmental concerns. Especially people with a high awareness for global warming try to travel environmental friendly and are looking for suitable travelling substitutes.
An increase in services to leisure destination lifestyle of the new generation.
In today’s fast-paced global business environment, timetables took precedence over service and for a discerning business traveler, scheduling is critical. Negative Medium
Overall Negative Low to Medium

2. Porter’s 5 Forces Model Overall: Low to medium
Potential New Entrants — Low
Potential threat from new entrants are:
a. Foreign Carriers enter into Australian Market
b. Regional Carrier Start Up. E.g. Virgin Blue
There are very few barriers to entry to the airline industry, but those that exist are particularly high:
There are high financial