imately one-third of the revenue received on these trans-Atlantic flights (Levere, 2005).
IS THE AIRLINE INDUSTRY GLOBAL OR LOCAL?
Industry globalization can be determined using the guidelines set out by Yip, including market, cost, competitive and government drivers. These drivers are influenced by various factors, including economic, technology, social and political factors, and the confluence of these factors and drivers results in a particular level of globalization·or localization·for a particular industry (Stonehouse et al, 2000):
Cost drivers in the airline industry include labor and fuel, along with the capital required to acquire and maintain aircraft. Fuel is one of the most significant cost drivers in this industry, and fuel is an international commodity influenced by political factors in addition to economics. Technology factors have helped British Airways reduce some of their costs as the company has been able to move toward increased automation of reservations and check-in so that labor costs can be reduced (Th
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