International Market COHdIiIOns
-- 1. | .J for international travel has tritiutseti M51
lig‘tecthillllz'iiver tltC Past tlt‘tarlt‘ ist't' laxlttliti 1) Hit: in
ternational travel growth rate is more than double the
dnmcflu navel growth rate in the L'mtctl bttttt's,' 'l‘rawl
to Southeast Asia and (‘hina increases every year by about
7.3 percent and 8.0 percent. Looking forward. the num—
ber of transatlantic plane tickets purchased is expected
to grow by 4.6 percent annually. Global business trans-
actions have contributed. as well as more discretionary
income for consumers, and lower airfare resulting from
greater efficiencies in international travel.
The international market is attractive to many air-
lines because they can include fuel surcharges in the .
ticket price and recover some of the costs associated with
higher-priced fuel. _
However, the airline industry is monitored more
scrupulously by the government than any other industry
conducting business internationally. The government has
many regulations on when, where, and how airlines can
fly, how much they can charge, and how they can market
international travel.“ Many lobbyist firms and politicians
in the United States have been fighting for deregulation
and less restrictions on international air travel so that the
United States might be more of a force in the interna-
tional market. The European airline industry, more spe-
cifically AirFrance/KLM, has taken the lead in revenues
for international aviation.47
Not only is it important for letBlue to consider its
competitive environment, but it is also important to un-
derstand the companies/ industries that supply the provi-
sions necessary to remain competitive.