ASSESSMENT TITLE:

Aviation: Covid 19 & future challenges:

Recent months have seen a huge decline in passenger numbers due to the Covid 19 pandemic. Governments have closed borders, and consumers have become cautious about travelling.

You will produce a briefing paper to a client who is exploring the possibility of operating a new low-cost passenger route in the European market.

Your client needs you to discuss the key challenges facing this industry.

Specifically, your client is keen that you examine the following issues in your report:

Market structure & firm behaviour.

Here you need to explain how firms have behaved, with a focus on the reaction of airlines and tour operators. The concepts of price and non-price competition will be helpful here.