Economic Chartacteristics of the Airlines Research Paper

Economic Chartacteristics of the Airlines - Research opus ExampleHere atomic number 18 some of these characteristics.The high aims of capital intensities are associated with airlines. The range of various equipment essential to run an airline cannot be compared to the budgeting of a regular size office. We have basic equipment like the ticketing computers, examine equipment, and other necessities ranging all the way to the planes themselves and the maintenance equipment (Gordon, n.d.). The industry then proves to be a capital-intensive business when you spare in mind the cost of all these fundamental airline equipment. Therefore, most airliners will end up procuring this equipment through loans or even hiring them from other companies.Airlines are also characterized by a high level of labor intensity. For a standard airliner to function well, it will need to hire a number of super skilled personnel to make it work. This skilled personnel is inclusive of the pilots, flight atte nders, plane mechanics and engineers, luggage handlers, security officers, the catering department, managers, accountants and this list has also included lawyers of late (COMPANY BRIEF Airlines, 2008). All these laborers, as they office be termed as, require to be paid, and as we all know, skill does not come cheap. This character associated with airlines has a great economic implication in the industry.Airlines are also characterized by their nature to be seasonal. This translates to meet that, seasons. It is known that most of the worlds masses travel a lot particularly during the summer season. This is because most of them are going on vacations, which create what can be termed as a good season in the airline industry (Borenstein, 2011). The winter season, on the other hand, does not involve a lot of traveling leading to a notable decrease in the market of the airline industry. These seasons create an