Is there Air transportation domestic competition in your country? Competition between domestic and foreign airline companies for domestic flights business being allowed in your country?
Roberto - Minadeo I would partially disagree with you on how strong competition actually is, and in fact, three of those four airlines are in trouble. The LATAM merger did not solve problems, it merely found another dynamic which still remains critically unbalanced in their Brazilian operations. Gol is financially compromised for years and has been lobbying hard to change legislation that restricts foreign ownership in the sector (which has recently changed). Avianca has filed for bankrupcy in last December. I will concede that the sector is not for amateurs, however these three companies failed to grasp what Azul put together from the start: you need to feed you national ambitions with regional support. Meaning that larger companies need to create stable regional hubs with the support of smaller regional airlines and other modes of transportation that will feed the national lines.
Rafiq Idris answering your question, in Brazil, my opinion is that the market does not compete on price (they all seem to get along) but are now competing for the more profitable routes and will surely compete for foreign investments. All airlines are national (meaning that the controlling interest is local), but that should change in the upcoming years. On international flights, the market is completely open.
As far as my perception goes there is a stiff competition in Airline Industry, both domestic and international. But the biggest challenge for the firms in airline industry is, how to manage the raising prices of white petrol, reduced number of passengers, pilots demanding higher salaries etc. Recently the price of white petrol increased by 8 per cent. The main competition is how they are going to balance the revenue and cost.
Governments in Africa decided to invest in air transport. Example Uganda air, Kenya air or Ethiopia airlines. So there is tight competition. Government try their business.
Yes, many airline companies, especially low cost ones, come to Croatia, because of tourism.
В России существует конкуренция в сфере авиаперевозок между отечественными и зарубежными компаниями, в данной ссылке вы можете увидеть названия этих компаний https://avianity.ru/aviakompanii/zarubezhnye/
There are always complaints, but the fact that one of the four largest airlines in Brazil is in serious financial trouble indicates that competition is very strong and that the sector is not for amateurs.
Roberto - Minadeo I would partially disagree with you on how strong competition actually is, and in fact, three of those four airlines are in trouble. The LATAM merger did not solve problems, it merely found another dynamic which still remains critically unbalanced in their Brazilian operations. Gol is financially compromised for years and has been lobbying hard to change legislation that restricts foreign ownership in the sector (which has recently changed). Avianca has filed for bankrupcy in last December. I will concede that the sector is not for amateurs, however these three companies failed to grasp what Azul put together from the start: you need to feed you national ambitions with regional support. Meaning that larger companies need to create stable regional hubs with the support of smaller regional airlines and other modes of transportation that will feed the national lines.
Rafiq Idris answering your question, in Brazil, my opinion is that the market does not compete on price (they all seem to get along) but are now competing for the more profitable routes and will surely compete for foreign investments. All airlines are national (meaning that the controlling interest is local), but that should change in the upcoming years. On international flights, the market is completely open.
In Iraq, the domestic air transportation is too competitive because of being faster, saves time and effort as well as being more save too. Iraq has too many religious, tourism and economic areas which motivate people to travel through air. These places attract investors not only in the field of transportation but also in the scope of trade too.
Another factor that expands competition between companies in Brazil is the investment of foreign companies in the sector.
No competition of domestic and foreign but foreign airlines do compete and the domestic airline needs to be revived. Even best airlines face bankruptcy or sever crisis and revive over time, shorter or longer again.
Hi, Prof. @ Marson Cunha. I see the monopoly in the supply of aviation fuel as an impediment to the growth of the sector. In addition, the institutional climate still presents additional difficulties.
In Malaysia, no competition between local and foreign owned airline companies for domestic flights
Hi, Prof. @Rafiq Idris. Competition is basic in any market. In our country, there was great accommodation until 2002. The entry of low cost Gol, in 2002, drastically dropped prices. Millions of people flew for the first time since that date. Three old and well-to-do companies quickly went bankrupt and the other survived hard, being acquired by an international group.
The market is fast and relentless: today the sale of the troubled airline was announced to the group that had the third position in the domestic market, but with strong connections in expertise and controller of an international company. Thus, there are three companies of similar size disputing the domestic market. At first glance, competition decreases, however, I see competition as a result of intensity and rivalry. That way, in parallel, there is more fighting between the two only players suppliers of commercial aviation planes, Boeing and Airbus, than when there were dozens of small manufacturers.
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