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TRL3703 ASSIGNMENT 4 SEMESTER 2 2023

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Course
Air Transport

Institution
University Of South Africa (Unisa)

1. Briefly discuss how competition has impacted service delivery in the airline environment. Refer to your own knowledge of airline alliances in your discussion. Competition within the airline industry has played a pivotal role in shaping service delivery, resulting in both positive and negative o...

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2023

Institution
University of South Africa (Unisa)
Course
Air Transport

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TRL3703
ASSIGNMENT 4
SEMESTER 2
2023

1. Briefly discuss how competition has impacted service delivery in the airline
environment. Refer to your own knowledge of airline alliances in your discussion.
Competition within the airline industry has played a pivotal role in shaping service delivery,
resulting in both positive and negative outcomes. Increased competition has forced airlines
to enhance their services to attract and retain customers (Smith, 2022). To differentiate
themselves, airlines have invested in innovations such as advanced in-flight entertainment
systems and improved cabin designs (Brown & Davis, 2017).
However, the pursuit of cost efficiency in the face of competition has led to certain
compromises in service quality. For instance, some airlines have reduced legroom and
complimentary services to maintain profitability (Johnson, 2023). Overbooking and flight
delays, often driven by competitive pricing strategies, have also impacted passenger
satisfaction (IATA, 2020).
The dynamics of airline alliances further contribute to service delivery. Global alliances like
Star Alliance and Oneworld allow member airlines to collaborate on routes and services,
offering passengers an extended network of destinations (Johnson, 2018). Nevertheless,
ensuring consistent service quality across diverse alliance members can be challenging (IATA,
2020).

The airline industry is a highly competitive industry, with airlines constantly competing for
passengers. This competition has had a significant impact on service delivery in the airline
industry. Airlines have been forced to improve their services in order to attract and retain
customers. In the airline industry, competition has led to a number of improvements in
service delivery. Airlines have improved their customer service, introduced new technologies,
and formed alliances with other airlines. These improvements have made it easier, more
convenient, and more affordable for passengers to travel by air.

Here are some more details about how competition has impacted service delivery in the airline
industry:

 Improved customer service: Airlines have implemented a variety of customer service
initiatives in order to improve their ratings. These include things like:

, o Introducing customer service pledges that guarantee a certain level of service
o Creating dedicated customer service teams to handle complaints and inquiries
o Using social media to interact with customers and resolve issues
o Investing in training for customer service staff
 More efficient processes: Airlines have streamlined their operations in order to reduce costs
and improve efficiency. This includes things like:

o Consolidating ground handling operations
o Using more fuel-efficient aircraft
o Investing in new technology to automate tasks
o Partnering with other airlines to share resources
 Introduction of new technologies: Airlines have invested in new technologies to improve the
passenger experience. These include things like:

o Self-service check-in kiosks
o Online boarding passes
o In-flight entertainment systems
o Mobile apps for booking flights and managing reservations
 Formation of airline alliances: Airlines have formed alliances with each other in order to offer
customers a wider range of destinations and services. This includes things like:

o Codesharing, which allows passengers to book a flight on one airline and travel on another
airline's aircraft
o Frequent flyer programs, which allow passengers to earn miles or points that can be
redeemed for free flights or upgrades
o Lounge access, which allows passengers to relax in comfortable lounges before or after their
flights

The impact of competition on service delivery in the airline industry is not without its
challenges. For example, airlines may be forced to cut costs in order to compete, which can
lead to lower wages and fewer benefits for employees. Additionally, the introduction of new
technologies can be disruptive and may lead to job losses. However, overall, the impact of
competition has been positive for passengers, who have benefited from lower airfares,
improved customer service, and more convenient travel options.

Examples of how competition has impacted service delivery in South Africa:

 Competition between South African Airways (SAA) and low-cost carriers such as
FlySafair has led to lower airfares.

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