AOL Airline Stakeholders and Profitability. Business & Marketing Essay

Airline Stakeholders and Profitability
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Table of Contents TOC \o "1-3" \h \z \u 1.Introduction PAGEREF _Toc25910791 \h 32.Critical Stakeholders PAGEREF _Toc25910792 \h 32.1Stakeholder 1 and profitability of US Airline Industry PAGEREF _Toc25910793 \h 3Aviation Fuel Companies PAGEREF _Toc25910794 \h 32.2Stakeholder 2 and profitability of US Airline Industry PAGEREF _Toc25910795 \h 4Government Institutions and agencies PAGEREF _Toc25910796 \h 43.Conclusion PAGEREF _Toc25910797 \h 44.References PAGEREF _Toc25910798 \h 5
Airline Stakeholders and Profitability
1 Introduction
The airline industry is known for complexities in retaining its profits margin due to several internal and external aspects which constantly hinder in their way of smooth flight operations. Airlines face huge competition from domestic and international airlines; labour union strikes are a constant threat for the air companies, changing customer preferences and highly volatile fuel prices pose significant threat to the business operations (Benny & Jen-Hung, 2012). It becomes important for the companies to adjust their strategies on a constant basis and identify way to increase their profits to survive and remain competitive in the global industry.
2 Critical Stakeholders
1 Stakeholder 1 and Profitability of the US Airline Industry
Aviation fuel companies. Stakeholders are the people who have their interest in the organization operations. One of the critical stakeholders of airline industry includes aviation fuel companies who have their interest in selling fuel to the airline corporations. Fuel cost is the largest expense for the airline which reduces its profit margins. Oil prices are constantly fluctuating. Airlines suffer due to a hike in oil prices which increases their operating costs. It is a major expense for air companies and they pay a huge amount of its revenues to the fuel companies. Air companies can avoid fuel price hike through an effective fuel price hedging which can help the airline to save millions of dollars. The airline should be prepared for price fluctuations ( HYPERLINK "/posts/author/thembinkosi-ntshalintshali/" \o "Posts by Thembinkosi Ntshalintshali" Ntsh...