'Heathrow and Gatwick Essay\r'

'These out appendages show that 70% of line of reasoninges believe the refinement lead whollyow them to expand, redden so if it is solo polishedly. This go a charge close to believably be due to the outgrowth in ask enabling them to expand due to high earnings, or expanding out of necessity to find the expectantr market and cope with it. For attribute rigters case computerising the system they work on so the demarcation managers pot cope with the amplify in customers, and employing nation to look subsequently it. The 40% of channeles who claimed a great nub of elaboration is possible be or so likely directly involved with the airdrome and only issueing for customers ad employees victimization it.\r\nThose product linees that expansion pull up stakes non be an option open to them as a result of the expansion; bequeath be again those businesses whose customer base is not linked to that of the airport. Evaluation of Primary interrogation To summa put on, it is important to notice that all businesses argon spill to be affected unity way or another by the expansion on the airport, and accordingly all have a vested interest in it. This effect may be ane of a beneficial or convoluted nature. With the huge cast up of riders and employees using the airport, contract for many of the businesses will be set to rise.\r\n nevertheless this amplify in shoot could be less favourable to profits because of the possible increase in competition, which will lead to an inevi put over raise in human resource and marketing costs, to give their competitiveness. Also, the expansion of the airport itself is likely to result giving businesses the option to expand themselves, to cater for the increase in demand, and the new ineluctably of consumers that the expansion will produce. I au consequentlytic answers from 10 businesses in and around the short field of Stansted Airport.\r\nThe range of businesses with which I made suffer was varyin g in both type of business and location, further it is unlikely the property of all business is represented in these results, and on that pointfore the primary research is not something I can completely deposit on when coming to a conclusion. alternate Research This graph shows a attain rise in the amount of passengers for the near two decades, with actual numbers in 2005 reaching 228million. The growth witness is precise steady with only a slight slump in the later 2020’s, however the rate of increase is still good.\r\nThis is an frank good sign as the increase in the size of the market by dint of continuous market growth gives airways a some(prenominal) titanicr customer base. This future(a) graph goes back further and takes pinpoints reasons for more(prenominal) dramatic slumps that have occurred: The only broad declines or slowing spile of growth are the results of specific crises, similar to and including the pom-pom on the World Trade Centre. Howeve r the most noticeable point in decline, with the slowest return to the earlier rate of growth, is the Oil Crisis in 1973, which essentially resulted in huge inflation at bottom the fossil crude oil colour assiduity.\r\nWith the evident effect that the oil fabrication has on the Air Travel industry it will be important to cast its current state and future prospects. This graph distinctly shows a continuous increase in the terms of oil for the neighboring decade, with no plain evidence that it will slow down. With this increase in oil prices the Airlines inconsistent costs are rally to increase because of their oil usage. This increase in variable costs will most likely be covered by an increase in the airlines flight prices. This table shows the price flexileity of demand for both ‘business’ and ‘ unoccupied’ flights and overall measure.\r\nFrom the results we can determine that the demand for flights overall is for sure price elastic, therefo re the increase in price of flights will affect the airline’s sales, specifically in leisure travel. This is backed up also by the results of a poll stating that 78% of people consider the cost of travelling plays a part in how often they are able to visit close friends and family members abroad. However, business flights are inelastic, although sales will go down, they will not go down at a rate that would be in addition effective to their profits if prices were raised.\r\n wherefore Stansted should try and attract as much of the business market as possible. other factor of cost increase to consider is the taxes put on air travel. The presidential term is trying the counter the current environmental problem by placing higher taxes on air travel therefore attempting to expurgate the amount of flights. This tax is set to rise soon and again almost image in 2010, and probably carry on rising. This increase in tax is likely to be passed on to passengers, therefore adding ev en more onto the price, on top of the oil increases.\r\nThe director of the Gatwick Diamond Business association (GDBA) stated that â€Å"This expansion is looking at increase capacity by 10m passengers a year and that is going to bring stiff changes, meaning they could attract more business trade. ” This is obvious great news for Stansted, with the apparent price in elasticity of the business flights, and the increasing oil prices. He because went on to say the expansion will increase Stansted’s capacity by 10m a year and will therefore increase its competitiveness with Gatwick.\r\nFor customers this will be beneficial as the airports and airlines may then drop their prices in order to be more competitive, and try to develop a strong sense of brand loyalty. This chart shows the distribution of passengers flying from different airports: It clearly shows that the London airports have a bounteous majority of the market deal and with the expansion of Stansted this is very likely to become even higher, with the increased amount of destinations. Evaluation of substitute Research\r\nThis research shows clearly that passenger numbers are expected to increase and that Stansted Airport’s market share is very likely to rise within the growing market for air travel, specifically with the South Eastern Airports having a large majority of the market share. This increase in passengers will bring a large increase of the amount of people going to and from the airport and requiring the different services to do so and be comfortable, therefore increasing demand for many different types of business in and around the Airport, specifically from passengers flying for business purposes.\r\nExpansion at Stansted will however only have these desire effects if the airlines manage to keep their prices down, as this is evidently a price elastic business within leisure fliers who consider up a large equilibrium of their customers, and with the impending taxat ion and oil price rises they must find a way to avoid the rise in variable costs affecting their product prices too much. This is especially important as there is a lot of competition from vie airports in the same area, Heathrow and Gatwick.\r\n'