Question

What might be the challenges to cost management in the airline industry, and why might certain carriers be more efficient in cost management that plays a crucial role in bottom line expectations? please answer clearly and explain with your own words, don't copy-paste from articles

Answer 1

The airline industry is quite booming nowadays, as the need for faster connectivity increases day by day. Everyone now must be wondering how such a booming industry faces such a challenge. This is where the problem starts.

• A new airline company starts its operations.
• Starts providing low priced tickets and better services than others.
• The company starts getting immense popularity and profits.
• blinded by the ever-growing demand and to recover for its low price services, rushes to expand international operations without proper planning.

In this race of becoming the most profiting airline, the company rushes to start its overseas operations which are actually nothing but a huge risk.