Economic rent is an important theory and concept in the airline industry as it identifies relevant factors of production and amount of resource that must be invested in production. Airline industry has a number of production dynamics whose costs must be received in order to sustain the business. For instance, a firm should pay wages to employees in order to get services their service. Different factors of production earn economic rent because of their efficiency or relevance in line of service offer or output production. Private ownership and management in the airline industry is less affected by rent sharing between management and alliance partners. The airline industry is very dynamic and sources of economic rent are diversified.
An Economic Analysis of the Low-Cost Airline Industry
Case Study: Southwest Airlines Mastered The Low-Price Model | Cram
Links to an external site. Waters Ed. London, UK: SAGE The case explains the growth in popularity of budget airlines and how low cost airlines are expanding their services to meet the needs of the global market. What benefits do airline customers seek when they buy air travel tickets? Also, what external and internal factors affect airline pricing decisions?
Pricing strategies of low-cost airlines: The Ryanair case study
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His primary job function includes marshaling planes and loading and unloading freight and baggage. When he initially applied for the position never would he have imagined that his job function would one day encompass color patterns and uniform design. Two years later Southwest Airlines is ready to unveil a bold and bright new uniform design. However, instead of hiring an outside company for the undertaking, it tapped employees like Roy Nabors to get the job done.