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uction in both economic growth and spending money (IMF, 2008). World Bank (2010) believes that the crisis is going continue to reduce and everything would be better than it is at the moment. This might make the industry less attractive in the short run but in the long run it will be profitable.

House prices fell in December 2010 by a further 1.3% according to Halifax (2011). The instability of interest rate and oil prices will affect the cost of the low cost airlines. This reduces the attractiveness as fuel takes up a large amount in the operating cost of airlines.

There has been an increase in unemployment (economist, 2010). This gives the low cost airlines bargaining power as an employer.

The UK economy (BBC news, 2009) is so stressed that a holiday is almost as important as having a job. This means the low cost airlines will still have customers as people want to go on holiday only cheaper. An increase in business travelling; this would be beneficial to low cost airlines as it means almost guarantee passengers. This is an opportunity as well as an attractive mechanism.

Internet usage is more common now than ever, it has increased the knowledge of people regarding business (Financial Times, 2009). To the low cost airlines it means the middle men charges can be cut off hereby reducing cost but it also means it can be compared to other airlines. It also means online bookings and check-in can reduce cost and improve efficiency. This is more attractive as getting customers will be easier. The threat of substitute products or service as they can easily be accessed; this gives the customer more bargaining power.

In the airline industry the development of technology is fast moving and very expensive (Harrcross, 2010), hereby can be seen as a barrier to entry. It is very important for the low cost industry to be up to date.

In 2010, Financial Times published the collusion of how airlines collude on fixing prices; this ensured that other airlines didn’t do it. Employment law and trade union affect low cost airlines as if the staffs decide to go on strike it will affect the company’s image and profit. An increase in corporate tax is being accessed (FT, 2011)

Customers are more aware of the environmental effect and are becoming green (Mainieri et al, 1997). The level of noise control is very important. This means they would be competition for the spaces there and low cost airlines would usually fly from another airport.

The climate change acts 2008 ensure tighter environmental regulation which might increase cost in the long run. The law of carbon emission, this would also affect their costs. The environmental changes can make this industry more attractive as long as the public know they are doing the right thing.

The bargaining power of supply (Hicks, 1932), oil prices are very important to aircrafts (Plourde and Watkind, 1998) the uncertainty and the continuous rise affects the industry in a great deal. It is beyond the control of the industry. There are two main aircraft manufactures which gives them bargaining power. This is high strength.

The bargaining power of customers(Cuff, 1999), due to the fact it is a low cost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。