Essay: Political and Economic analysis of Virgin Airline

Essay: Political and Economic analysis of Virgin Airline

Sample Essay

As far as the political analysis is concerned for the Virgin Airlines suffers from operating restrictions in which every airline has to take care of its operations. The main benefit for the Virgin Atlantic airways is joining an alliance with other industry giants which made it reachable in most of the countries in Asia and Europe. It also creates ties with slots, because every airline in their home country created a monopoly. Another political benefit for the Virgin Atlantic Airways is bilateral agreement of routes which every airline member can utilize it.

There are different factors which analyse the economic variability of Virgin Airline. The European market is a huge market and there are different competitors of Virgin Airlines which created competition such as rate wars leads towards the lower output for the Airline industry. However, major joint ventures proved to be beneficial to curtail the competition and increase the output level. The joint ventures of Virgin Airlines also minimized the possible predictions to the expansions of airports. Another economic factor of the Virgin Airline is the Code Sharing with other associated airlines and provides unique service to its customers without splitting its cost. Virgin Airline also entered in different markets (countries) and signed a joint venture agreement with the local airlines that were running out of funds in their home country.

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