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Cost Structure of the Airline Company

Big airlines like US Airways, United, and Delta struggle to compete with smaller carriers like JetBlue.

Delta answers by introducing its own low-fare airline, Song.

HOW DO AN AIRLINE'S COST STRUCTURE AND BUSINESS MODEL AFFECT ITS ABILITY TO MANAGE COSTS AND CHARGE COMPETITIVE RATES?

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The response addresses the queries posted in 650 words with references.

//To remain competitive is the need of today business environment. Similar is the case with Airline Industry. In order to analyze the Cost structure/ basic business model, it is necessary to focus on the element of cost management and its business model. Keeping this in mind, below is the Cost Structure of the Airline Company: //

Cost Structure of the Airline Company

Introduction:

In the world of globalization, changes are a necessary tool to survive competitively. In the industry, the price of the product and services are affected by various factors such as the demand, market structure, environment of the society and culture of the society, competitors in the industry etc. Due to these factors, the firms charge the different prices for the same service. In order to manage the cost of the services, the business model and cost structure of an airline plays an important role.

Due to the low cost carrier, competition is continuously increasing in the airline industry. The consumers are attracted towards these airlines because of ...

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