Introduction

An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Airlines vary from those with a single aircraft carrying mail or cargo, through full-service international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intra-continental, domestic, regional, or international, and may be operated as scheduled services or charters. The first Bangladeshi commercial passenger airline, Biman Bangladesh Airlines, rwas bon in 1972 soon after the independence of Bangladesh. As the national flag carrier, Biman operated as a monopoly for over two decades and was fully owned by the Bangladesh government. Identification of industrys dominant economic features is very important for analyzing a companys industrys and competitive environment. It also provides an overview of the over all landscape of industry. So basically it helps the organization to know the different kind of strategic moves that industry members are likely to employ. Some of the important airlines industrys dominant economic features are given below. The airlines industry Dominant features are include-Market size and growth rate, number of rivals, scope of competitive rivalry, buyer needs and requirements, degree of services differentiation, services innovation, supply and demand conditions, pace of technological change, vertical integration, economies of scale, learning curve effects.

Market size and growth rate

Market size refers to the total number of firms operating in the industry. It is also important to know whether the industry is growing, static or declining. It depends upon the position of industry in the business life cycle i.e. early development, rapid growth, early maturity, maturity, stagnation, and decline. In Bangladesh there are large number of air lines companies available and their growth are followingBiman Bangladesh Airlines: partly transcribed from English into Bengali and the other way around) is the flag carrier airline of Bangladesh. Its main hub is at Shahjalal International Airport in Dhaka, and also operates flights from Shah Amanat International Airport in Chittagong, earning revenue from the connecting service to Osmani International Airport in Sylhet. Biman's operations are assigned the IATA airline code BG and the ICAO airline code BBC, while its callsign is BANGLADESH.The carrier provides international passenger and cargo service to Asia and Europe, as well as major domestic routes. It has air service agreements with 42
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countries, but flies to only 16. The airline was wholly owned and managed by the government of Bangladesh until 23 July 2007, when it was transformed into the country's largest public limited company by the Caretaker Government of Bangladesh. The airline's headquarters, Balaka Bhaban, is located in Kurmitola, Dhaka. Created in February 1972, Biman enjoyed an internal monopoly in the Bangladesh aviation industry until 1996. In the decades following its founding, the airline expanded its fleet and destinations, but it was adversely affected by corruption and mishaps. At its peak, Biman operated flights to 29 international destinations as far away as New York City to the west and Tokyo to the east. The airline has suffered heavy financial losses, and has a reputation for poor service because of regular flight cancellations and delays caused by its ageing fleet. For safety reasons, some of Biman's long-haul aircraft have been banned in the United States and the European Union. Annual Hajj flights, transporting non-resident Bangladeshi workers and migrants, and the activities of its subsidiaries, form an important part of the carrier's business. Rising oil prices have created additional pressure on the airline's finances, which is widely reported to have failed to meet its payment obligations to the state-owned petroleum corporation, BPC. Under Skytrax's five-star rating systems, Biman merits two stars. The carrier is currently facing competition from a number of local private airlines as well as some international carriers, which offer greater reliability and service standards, targeting the country's air transport sector which is experiencing an 8% annual growth rate, owing to a large number of non-resident Bangladeshis. Since becoming a public limited company, the airline has reduced staff and begun to modernise its fleet. Biman has made a deal with Boeing for 10 new aircraft, along with options for 10 more. The carrier is in the process of leasing some aircraft in the interim to restart flights to some of its previous destinations in Asia, Europe, and North America. In the 200506 fiscal year, Biman carried 1.15 million passengers, a growth of 70% over the previous decade. With the rise of private domestic carriers in Bangladesh, however, Biman's market share for domestic passengers dropped by 35% over the previous ten years' average, with only 162,000 passengers travelling with Biman in the domestic sector in the 200506 fiscal year. During the same period, Biman reported its biggest annual loss of over US$120 million (BDT 8.3 billion as of 2010), with a US$100 million (BDT 6.9 billion as of 2010) loss reported the following year. Biman also fell behind on millions of dollars in payments to its fuel supplier, the Bangladesh Petroleum Corp. The growth of international traffic and tourism to/from Bangladesh is facing continued challenges in 2011. National flag carrier Biman Bangladesh Airlines is reportedly on the verge of bankruptcy, weighed down by a considerable debt burden. Bangladesh is also struggling to
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upgrade its infrastructure and tourism facilities to attract international visitors, with inbound tourism remaining flat in 2010. Due to the poor performance of domestic airlines, foreign carriers have been driving the expansion of the international market to/from Bangladesh, to control over 80% of the market, according to United Airways. And despite a market environment that should support low cost carriers (LCCs), development on this front has been limited with only 7.5% of Bangladeshi capacity being operated by LCCs, according to Innovata. Bangladesh capacity share by carrier type (04-Jul-2011 to 10-Jul-2011)

Biman Bangladesh reports loss of USD11.1m in 2010

Biman Bangladesh Airlines, according to reports in The Financial Express in Jun-2011, is now on the verge of bankruptcy due to its large debt burden, after sliding from profitability to losses last year, with the carriers Chairman of the Board of Directors admitting the national carrier was going through a critical time. The airline made a remarkable financial recovery after it became a public limited company in Jul-2007 (during the time of the last caretaker government) but this failed to last. The carrier, the largest airline in Bangladesh by seat capacity, has been plagued by corruption allegations, a lack of planning, mismanagement, operational inefficiency, an ageing fleet, constant aircraft groundings and persistent operational delays, with the carrier finding profitable growth a challenge. Bangladesh capacity (seats per week, to/from/within) by carrier (04-Jul-2011 to 10-Jul-2011)

Source: Centre for Asia Pacific Aviation and Innovata In fact, growth of any kind appears to be a challenge. Biman Bangladesh is shrinking while other airlines are expanding. Its network is currently comprised of 19 international and three domestic routes with 11 ageing aircraft, down from as many as 30 international routes earlier in its history. Air Arabia: Air Arabia is a low-cost airline with its head office in the Sharjah Freight Center, Sharjah International Airport, in Sharjah, United Arab Emirates. Air Arabia was established on 3 February 2003 by an Amiri decree issued by Dr. Sultan bin Mohamed Al-Qasimi, the Ruler of Sharjah and member of the Supreme Council of the United Arab Emirates, becoming the first low-fare airline in the region. The airline started operations on 28 October 2003 with the first flight from Sharjah, UAE to Bahrain International Airport. The airline was profitable from the first year of being in business. It launched a successful initial public offering for 55% of its stock early in 2007. GMG Airlines: Based in Bangladesh, GMG Airlines owned by the industrial conglomerate Beximco commenced life in 1997 and started operations on 06-Apr-1998. The carrier, the largest private commercial carrier in Bangladesh, initially operated domestic services, with international services launched in Sep-2004 with services between Chittagong and Kolkata. 12 years later, with eight international and five domestic destinations, GMG Airlines offers 234 weekly services. GMG's international route consists of Kuala Lumpur, Delhi (resumed on 01May-2011), Bangkok, Kathmandu, Kolkata, Karachi, Dubai, Abu Dhabi, Jeddah and Riyadh. In domestic operation it serves Dhaka, Chittagong, Coxs Bazaar, Sylhet and Jessore. 75% of the carriers capacity is deployed internationally at present with the carrier also planning to add Doha and London to its network.
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With this expansion, GMG Airlines has grown to hold 12% of international capacity to/from Bangladesh, up from 9% a year ago. Bangladesh international capacity (seats per week as % of total) breakdown: Week commencing 04-Jul-2010

Source: Centre for Asia Pacific Aviation and Schedules iNet Bangladesh international capacity Week commencing 04-Jul-2011 (seats per week as % of total) breakdown:

Source: Centre for Asia Pacific Aviation and Schedules iNet The idea behind the launch of GMG Airlines was to take advantage of a specific gap that existed in the Bangladesh Air Transport industry for a quality oriented local airline but with a global reach, the carrier has said.

The repeated failures of the national carrier and the ever enhancing shares of foreign air carriers in the Bangladesh market only made the country, its intelligentsia and its business community more determined than even before to have an air carrier of Bangladeshi origin, free of state interference that could challenge the hegemony of foreign airlines and help the country to gain its rightful place on the global air transport map, the carrier has stated. Despite the trail of failed private airlines ventures in Bangladesh, With the entry of the BEXIMCO Group as strategic investors in June 2009, GMG Airlines vision of expanding its horizons to become a global player with a distinctly regional touch started becoming a reality, it added. GMG Airlines has ambitious plans to be a major player in the global market. To support these aspirations, the carrier is expanding, with new services in the Middle East, Far East and Europe. GMG Airlines currently operates a fleet of two B767s, three MD80s and three Bombardier Dash 8 aircraft, for a total of eight aircraft. Emirates (airline): During the mid-1980s, Gulf Air began to cut back its services to Dubai as it was concerned it was providing regional feeder flights for other carriers. Emirates became profitable within its first nine months. During its first year, it carried about 260,000 passengers and 10,000 tons of freight. To highlight the airline's early success, Gulf Air, during Emirates' first year of operations, suffered a 30% drop in profits, and a loss the following year. By 1986, the airline was adding new destinations such as Colombo, Dhaka, Amman and Cairo to its route network. On 3 July, Emirates received its first bought aircraft, an Airbus A310 (registration A6-EKA), and with two examples, launched daily non-stop services to Gatwick on 6 July 1987. The airline in 1987 added Frankfurt via Istanbul, and Mal (Maldive). This was followed by an expansion into the Far East market in 1989, with flights to Bangkok, Manila and Singapore, and Hong Kong in 1991. During the first decade of operations, Emirates recorded strong growths averaging 30%. This was despite the lack of a regional network, as its main competitor Gulf Air dominated traffic in the region. Qatar Airways: Qatar Airways is in airline company. This is in Doha, the capital city of Qatar. Its office can be found in the Doha International Airport. There will be another airport in Doha in short time. It is one of the fastest growing airlines, and one of the four airlines that are rated "five stars" because of its good service. Travel by air has reached the point where it is now taken for granted in most corners of the globe. With a larger number of passengers and more choice available in the skies today, airlines looking to maintain or grow their position in the marketplace must provide high-quality service with ever-increasing efficiency. In this highly competitive environment, Qatar Airways has achieved much with our phenomenal route expansion averaging 30% growth year to year and flying one of the most modern fleets of aircraft in the skies today.
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Jet Airways: Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership of Jets parent company, Tailwinds). It has 10,017 employees (as at March 2007). Naresh Goyal who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India set up Jet Airways as a full-service scheduled airline to compete against state-owned Indian Airlines. In the December 2010 quarter, the company's net profit rose by 11.7% to 118 crore from the year ago. The company benefited from the 14% growth in passengers and also the conversion of its low-cost carrier (LCC) to full-service carrier and rupeedenominated debt to dollar-denomination. By December 2010, the Mumbai-headquartered company had converted debt of about 2,000 crore of its total debt of 13000 crore into the dollar-denomination, helping it save 5% on interest costs. Also, the flexibility to convert LCC traffic into full services resulted in enhanced yields.

Regent Airways: Regent Airways (HG Aviation Limited) is a fully-owned subsidiary of Habib Group - a Chittagong-based conglomerate in business since 1947. As a start-up airline, Regent Airways is setting standards never seen before in the local industry - starting from extensive infrastructural capabilities and modern fleet of aircraft to world-class training of its staff and adoption of highest safety standards. The fleet of the aircraft currently consists of 02 (two) Canadian-built Bombardier Dash-8-Q300 aircraft reputed for its exceptional reliability and passenger comfort, which are maintained to European standards. The fleet is planned to expand soon with larger jet aircraft such as the Boeing 757 as Regent would begin to fly beyond the borders of Bangladesh. Cathay Pacific: Cathay Pacific (Chinese)Mandarin Pinyin: Guti Hngknggngs; Jyutping: gwok3 taai3 hong4 hung1 gung1 si1, SEHK: 0293) is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place. The airline's operations include scheduled passen ger and cargo services to 114 destinations in 36 countries worldwide, including codeshares and joint ventures, with a fleet of 132 wide-body aircraft, consisting of Airbus A330s and A340s, Boeing 747s and 777s. The airline also operates fifth freedom flights from Bangkok and Taipei, its major focus cities. Its wholly owned subsidiary, Dragonair, operates to 30
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destinations in the Asia-Pacific region from its Hong Kong base. In 2009, Cathay Pacific and Dragonair operated 56,000 flights, carrying nearly 25 million passengers and over 1.52 million tons of cargo and mail. Air China: Air China from Bangladesh to Ahmedabad : Find cheap Air China from Bangladesh to Ahmedabad and book direct Air China flights from Bangladesh to Ahmedabad online at Make My Trip UAE. MakeMyTrip.com the leading online travel company of Indi a provides best deals on Air China tickets from Bangladesh to Ahmedabad . Air India, Kingfisher Airlines, Emirates Airlines, Oman Aviation, Jet Airways, Air India Express, Gulf Air, Etihad Airways, Air Arabia, Qatar Airways, SriLankan Airlines, Malaysia Airlines, Singapore Airlines, Middle East Airlines, Thai Airways Intl Ltd, Biman Bangladesh, Kuwait Airways Corp, Alitalia and more. China Eastern Airlines MU: The airline was established on 25 June 1988, under the CAAC Huadong Administration. In 1997, China Eastern took over the unprofitable China General Aviation and also became the country's first airline to offer shares on the international market. It founded China Cargo Airlines in a joint venture with COSCO in 1998. In March 2001, it completed the takeover of Great Wall Airlines. China Yunnan Airlines and China Northwest Airlines merged into China Eastern Airlines in 2003. Shanghai-based China Eastern Airlines (MU) reported third-quarter profit increases owing to the continuous robust growth of domestic market demand.

MU posted a third-quarter net income of CNY3.31 billion (US$523 million), up 4.9 per cent over a net profit of CNY3.16 billion in the year-ago quarter. Operating revenue climbed 12 per cent to CNY24. 45 billion while operating expenses rose 13.6 per cent to CNY21.27 billion. In the first nine months of the year, MU earned a net income of CNY 5.76 billion while HU reported a net profit of CNY2.28 billion in the same timeframe.

The carrier's operating revenue grew 14 per cent to CNY63.23 billion from January to October while its operating expenses also increased 14 per cent to CNY 58.07 billion. HU's operating revenue climbed 23 per cent to CNY19.37 billion while operating expenses increased 20.6 per cent to CNY13.642 billion in the same timeframe. China Southern Airlines CZ: China Southern Airlines (simplified Chinese:; traditional Chinese: (SSE: 600029, SEHK: 1055, NYSE: ZNH) is an airline headquartered in Baiyun District, Guangzhou, Guangdong Province, People's Republic of China. It is the world's sixthlargest airline measured by passengers carried, and Asia's largest airline in terms of both fleet size and passengers carried. It is also the fourth-largest airline in the world in domestic passenger traffic and the sixth-largest in scheduled domestic passenger-kilometres flown[citation needed].
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From its main hubs at Guangzhou Baiyun International Airport and Beijing Capital International Airport, the airline flies to 121 destinations using a fleet of 422 aircraft. In 2010, China Southern Airlines carried 76.5 million domestic and international passengers with an average load factor of 79.2%. The airline reported a net profit of CNY5.8 billion ($883 million) in 2010. Etihad Office Dhaka - EY : The airline was set up by a Royal Decree in July 2003, with Abu Dhabi, the capital of the UAE, as its hub. Etihad started commercial operations in November 2003 and has established itself as a leading airline. In a short time since its inception, Etihad Airways has become the fastest growing brand in the history of commercial aviation. Gulf Air GF: In 2004, Gulf Air introduced direct flights between Dubai and London and Muscat and London, and a daily service between Abu Dhabi and Ras Al Khaimah and carried a record 7.5 million passengers during this year. Gulf Air's sponsorship of the Bahrain Formula 1 Grand Prix continued, with a record race crowd and a global TV audience. The airline announced a return to profit, with the best financial performance since 1997. Despite a BD30 million (US$80 million) cost to the business through fuel price rises during the year, Gulf Air recorded a profit of BD1.5 million (US$4.0 million) in the calendar year to December 2004, on revenues up 23.8% to BD476.3 million (US$1.26 billion) (2003: BD 384.6 million / USD1,020.2 million). The results meant the airline out-performed the targets set under Project Falcon, the three-year restructuring plan approved by the Board in December 2002. The owner states of Gulf Air at that timethe Kingdom of Bahrain, the Emirate of Abu Dhabi, and the Sultanate of Oman confirmed their support for further expansion of the airline through a new three-year strategic plan which would include re-equipment of the aircraft fleet and recapitalization of the business through private sector financing. Gulf Air was also placed on the IOSA registry following its successful completion of the IATA Operational Safety Audit (IOSA). Kingfisher Airlines: Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle (East), Mumbai. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red.

Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines Kingfisher operates more than 375 daily flights to 71 destinations, with regional and long-haul international services.In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the skytrax award for India's best airliner of the year 2011. Kuwait Airways KU: Kuwait Airways Al-Khutout Al-Jawwiya Al-Kuwaityah) is the national airline of Kuwait, with its head office on the grounds of Kuwait International Airport, Al
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Farwaniyah Governorate. It operates scheduled international services throughout the Middle East, to the Indian subcontinent, Europe, Southeast Asia and North America, from its main base at Kuwait International Airport.Kuwait Airways is a member of the Arab Air Carriers Organization. Kuwait Airways aims to re-establish its network to reach more than 47 countries around the globe with a firm commitment to providing the finest service and comfort to passengers while continuing to rank safety as one of highest priorities.The airline had 5,915 employees in March 2009. Malaysian Airline : Malaysian Airline System Berhad (MYX: 3786), DBA Malaysia Airlines (abbreviated MAS), is the government-owned flag carrier of Malaysia. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its eastern hub in Kota Kinabalu. It has its headquarters on the grounds of Sultan Abdul Aziz Shah Airport in Subang, Selangor. The airline plans to relocate its headquarters from Sultan Abdul Aziz Shah Airport to KLIA in February 2012. RAK Airways: RAK Airways was founded in 2006 and launched operations early in 2007 with two Boeing 757-200 aircraft. Boeing and RAK Airways signed a 1.6 billion dirham deal for four 737-800s, with further purchase rights with the first aircraft available to be taken on delivery in 2011. Singapore Airlines: Singapore Airlines was the launch customer of Airbus A380, currently the world's largest passenger aircraft. SIA has diversified airline-related businesses, such as aircraft handling and engineering. Its wholly owned subsidiary, SilkAir, manages regional flights to secondary cities with smaller capacity requirements. Subsidiary Singapore Airlines Cargo operates SIA's dedicated freighter fleet, and manages the cargo-hold capacity in SIA's passenger aircraft. SIA has a 49% shareholding in Virgin Atlantic and engages the low-cost carrier sector through its stake in Tiger Airways. It ranks amongst the top 15 carriers worldwide in terms of revenue passenger kilometres, and 10th in the world for international passengers carried.On 15 December 2010, Singapore Airlines was announced by the International Air Transport Association as the world's second largest airline in the world by market capitalisation with a worth of 14 billion US dollars. Saudi Arabian Airlines :Saudi Arabian Airlines is the flag carrier airline of Saudi Arabia, based in Jeddah. It operates domestic and international scheduled flights to over 90 destinations in the Middle East, Africa, Asia, Europe and North America. Domestic and international charter flights are operated, mostly during Ramadan and the Hajj season. passengers and recorded a 14% rise in profits. In April the following year the airline ordered 15 Embraer E-170LR aircraft in a deal worth $400 million. Thai Airways: Thai Airways International Public Company Limited (SET: THAI, Thai: ) is the national flag carrier and largest airline of Thailand. Formed in 1988, the airline's headquarters are located in Chatuchak District, Bangkok, and operates out of Suvarnabhumi Airport. Thai is a founding member of the Star Alliance. Thai is a major shareholder which hold 39% shares of Nok Aira low-cost Bangkok-based carrier. In August
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2010, Thai announced to own 51% of a joint venture for a low-cost airline based in Thailand, with Tiger Airways owning the remaining 49%. Turkish Airlines: Turkish Airlines (Turkish: Trk Hava Yollar Anonim Ortakl) (ISE:THAYO.E) is the national flag carrier airline of Turkey, headquartered in the Turkish Airlines General Management Building on the grounds of Atatrk Airport in Yeilky, Bakirky district, Istanbul.It operates scheduled services to 146 international and 41 domestic cities (38 domestic airports), serving a total of 187 airports, in Europe, Asia, Africa, and the Americas. The airline's main base is at Atatrk International Airport, with secondary hubs at Esenboa International Airport, Sabiha Gken International Airport, and Adnan Menderes Airport. In 2006, 2007, 2008, 2009 and 2010 THY carried 17 million, 19.7 million, 22.5 million, 25.1 million and 29 million passengers with total revenues of US$2.23, $3.0, $4.5, $4 and $5.6 billion, respectively. United Airways: United Airways (BD) Ltd, a public limited company by shares, is founded by an expatriate airline pilot, Capt. Tasbirul Ahmed Choudhury along with a group of professionals, business people, entrepreneurs united together in a shared vision to develop a world class airline in Bangladesh. United Airways fleet profile: Jul-2011

United Airways Bangladesh international capacity by region (04-Jul-2011 to 10-Jul-2011)

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Bangladeshs air traffic grew 7.3 per cent on 2008, making it one of the fastest growing aviation markets in the region, but decades of poor performance by the other airlines has enabled foreign carriers to snatch almost 80 per cent of the market. Government decision proves that it wants a level playing field in the aviation industry. UK and Gulf is the most important market for Bangladeshi airlines as one in two people who fly abroad goes to the six Gulf countries and UK, which employ more than 70 percent of the countys over five million migrant workers.

Other AirLines In bangladesh AirAsia: AirAsia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit (about $USD0.26 at the time) with USD$11 million (RM40 million) worth of debts. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27). Air France: Air France (formally Socit Air France SA), stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, (north of Paris), and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance. As of 2010 Air France serves 32 destinations in France and operates worldwide scheduled passenger and cargo services to 154 destinations in 91 countries (including Overseas departments and territories of France) and also carried 71.3 million passengers. The airline's global hub is at Paris Charles de Gaulle Airport, with Paris Orly Airport, Lyon-Saint Exupry Airport, and Nice Cte d'Azur Airport serving as secondary hubs.
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Air France's corporate headquarters, previously in Montparnasse, Paris, are located on the grounds of Paris-Charles de Gaulle Airport, north of Paris. SriLankan Airlines: SriLankan Airlines Limited (previously known as Air Lanka) is the flag carrier airline of Sri Lanka. It operates to destinations in Asia and Europe from its base and hub at Bandaranaike International Airport (Colombo). The airline's trademark phrase is 'You're Our World', and the company's logo features a stylized peacock. The airline's head office is in the Airline Centre, on the grounds of Bandaranaike International Airport in Katunayake, Sri Lanka. Nepal Airlines: Nepal Airlines (formerly known as Royal Nepal Airlines) is the flag carrier of Nepal. Its main base is Tribhuvan International Airport, Kathmandu. The airline was established in July 1958 as Royal Nepal Airlines Corporation (RNAC). The airlines first aircraft was a single Douglas DC-3, used to serve domestic routes and a handful of destinations in India. The airline acquired its first jet aircraft, Boeing 727's, in 1972. In 2004 the Nepal Government decided to sell off 49% of its stake in Nepal Airlines to the private sector. Presently, the airline operates a fleet of seven aircraft and flies to 39 destinations; seven of which are international. Air India: Air India is the flag carrier airline of India. It is part of the government of India owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Its corporate office is located at the Air India Building at Nariman Point in South Mumbai. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport. An international hub at Dubai International Airport is currently being planned. Air India has the fourth largest share in India's domestic air travel market, behind Jet Airways, Kingfisher and IndiGo. Following its merger with Indian, Air India has faced multiple problems, including escalating financial losses and discontent among employees. Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily due to stiff competition from private Indian carriers. In August 2011, Air India's invitation to join Star Alliance was suspended due to its failure to meet the minimum standards for the membership. In October 2011, talks between the airline and Star Alliance have resumed. Asiana Airlines: Asiana was established on 17 February 1988 and started operations in December 1988 with flights to Busan. It was formed by the Kumho Asiana Group (formerly Kumho Group) as part of the South Korean government's policy to create a second flag carrier and was originally known as Seoul Air International. The South Korean government has given its approval for foreign ownership of the airline to increase from 20% to 50%. The airline is owned by private investors (30.53%), Kumho Industrial (29.51%), Kumho Petrochemical (15.05%), foreign investors (11.9%), Korea Development Bank (7.18%), and others (5.83%). It employs 7,799 staff (at March 2007). Asiana Airlines has rapidly expanded since its establishment in 1988 to become a midsized, global carrier with a fleet of 69 aircraft providing international services to 66 cities in 21 countries on 82 routes, and domestic services to 12 cities on 15 routes. In 2007, the airline had net sales of some US$3 billion. Continental Airlines: Continental Airlines (IATA: CO, ICAO: COA, Call sign: CONTINENTAL) is a major American airline based in Chicago, Illinois (previously based in
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Houston, Texas). On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. (the parent company of United Airlines) announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc. These airlines are in the process of merging their operations under the name United Airlines. During the integration period, both airlines will, for a time, run separate operations under direction of a combined leadership team of the new parent company based in Chicago. The merger transaction is estimated to be worth (USD)$3.2 billion. Philippine Airlines: Philippine Airlines, Inc. (abbreviated as PAL and also known historically as Philippine Air Lines) operating as Philippine Airlines, is a flag carrier of the Philippines. Headquartered in the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name. Out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City, Philippine Airlines serves nineteen destinations in the Philippines and 24 destinations in Southeast Asia, Middle East, East Asia, Oceania and North America. All Nippon Airways -Japan base airline: All Nippon Airways Co., Ltd. is one of the largest airlines in Japan. It is headquartered at the Shiodome City Center in the Shiodome area in Minato, Tokyo, Japan. It operates services to 49 destinations in Japan and 35 international routes and employed over 14,000 employees as of May 2009. In May 2010, ANA's total passenger traffic is up year-on-year by 7.8%, and its international services grow by 22% to 2.07 million passengers in the first five months of 2010. ANA's main international hubs are at Narita International Airport outside Tokyo and Kansai International Airport outside Osaka. Its main domestic hubs are at Tokyo International Airport (Haneda), Osaka International Airport Itami, Chbu Centrair International Airport (near Nagoya), and New Chitose Airport (near Sapporo). Air Mauritius: Air Mauritius Limited, stylised as Air Mauritius, is the flag carrier of Mauritius. The airline is headquartered at the Air Mauritius Centre in Port Louis, Mauritius. Its main base is Sir Seewoosagur Ramgoolam International Airport. It operates under the IATA airline designator MK and the ICAO airline designator MAU; its callsign is AIRMAURITIUS. The carrier is 51%-owned by Air Mauritius Holdings Ltd., which is in turn owned in its majority by the Mauritian Government. Air Mautitius' wholy-owned subsidiaries are Airmate Ltd., Air Mauritius Holidays (Pty) Ltd. Australia, Air Mauritius SA (Proprietary) Ltd., Mauritian Holidays Ltd. (UK) and Mauritius Helicopters Ltd.; partly-owned subsidiaries are Mauritius Estate Development Corporation Ltd. (93.7%), Pointe Coton Resort Hotel Company Ltd. (54.2%), and Mauritius Shopping Paradise Company Ltd. (41.7%).

Air Macau:The airline was established on 13 September 1994, and began commercial operations on 9 November 1995, with a flight from Macau to Beijing and Shanghai (prior to 1995, there was no air service to Macau other than the helicopter service). One-aircraft service between Beijing, Shanghai and Taipei began on 8 December 1995. The first pure-freighter service was launched on 7 October 2002, between Taipei and Shenzhen via Macau.

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Air Macau is owned by China National Aviation (CNAC) (51%), TAP Portugal (20%), STDM (14%), EVA Air (5%), the government of Macau (5%) and Macau investors (5%) and employs 1,023 staff (at March 2007).[2] Two companies controlled by Macau SAR's Chief Executive Edmund Ho have sold a combined 1.25 percent stake in financially troubled Air Macau to a unit of China flagship carrier Air China, Reuters reported during the week. Druk Air: Druk Air Corporation Limited ,operating as Drukair Royal Bhutan Airlines, is the national airline of the Kingdom of Bhutan. Its headquarters are in the western dzongkhag of Paro. Bhutan has drawn a Vision 2020 Plan, as part of its Five Year Development Plans targeting several sectors for development, which includes improved external air links by 2017 that would enable increase in income from tourism from 100% (by 2012) to 150% (2017) coupled with completion of second National Highway by 2017. It has also signed several memorandum of understandings with the Government of India not only to enhance airtraffic facilities and operations but also to help Bhutan during emergency situations of floods and earthquake affecting the Paro Airport. Aeroflot : OJSC Aeroflot Russian Airlines (Russian: - Aeroflt-Rossskie avialni) (MICEX:AFLT RTS:AFLT), commonly known as Aeroflot (Russian: , English translation: "air fleet"), is the flag carrier and largest airline of the Russian Federation, based on passengers carried per year. Aeroflot operates domestic and international passenger services covering a network of 97 cities in 48 countries, mainly from its hub at Sheremetyevo International Airport. During the Soviet era, Aeroflot was the Soviet national airline and the largest airline in the world. Following the dissolution of the USSR, Aeroflot has been transformed from a state-run enterprise into a semi-privatized airline which ranks amongst the most profitable in the world. Aeroflot is still considered the de facto national airline of Russia. It is 51%-owned by the Russian Government, as of June 2011. The company completely owns Donavia since early 2007, when it boosted its participation in the Rostov-on-Donbased airline then-named AeroflotDon from 51% to 100%. British Island Airways (BIA): British Island Airways (BIA) was the legal successor to BUIA. It commenced operations under that name in mid-1970. Ten years later it merged with Air Anglia, Air Wales and Air Westward to form Air UK, at the time the UK's biggest regional airline and its third-largest scheduled operator. The first British Island Airways had its head office in the Congreve House in Redhill, Surrey. Bismillah Airline: Bismillah Airlines s is an enterprise within Mollah Group of Industries, a reputed industrial and export house of Bangladesh. Established in 1998, Bismillah Airlines over the years have developed strong linkages with the major freight forwarders, engineering & maintenance organization, flight operations , aviation schools and as well as the airline community globally. Now we have close working relationship with them and flourishing in the aviation industry in a positive direction

Scope of competitive rivalry

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Scope of competitive rivalry is an important factor for the organizations to know about the level of competition. Industry members must know about the nature of future competition. For example if a company realizes that its future success depends upon diversification, product development and market expansion, then it must start planning from the very first day.

Nation rival air lines include

Biman Bangladesh Airlines (flag carrier) GMG Airlines United Airways Regent Airways Royal Bengal Airline Bismillah Airlines Best Air Air Sylhet

Local rivals Best Air Royal Bengal Airline Regent Airways

Regional airlenes rivals Druk Air Nepal Airlines Air Sylhet GMG Airlines United Airways Air Macau
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Other are international and global rivals are includeBiman Bangladesh Airlines (flag carrier); Cathay Pacific CX ; Air China; China Eastern Airlines MU; China Southern Airlines CZ; Etihad Office Dhaka EY; Gulf Air - GF ; Kingfisher Airlines IT; Korean Air (KE) GSA-ABC Air Ltd.; Malaysia Airlines MH ; RAK Airways Dhakka Singapore Airlines SQ; Saudi Arabian Airlines SU; Thai Airways TG; Turkish Airlines TK; United Airways (bd) Ltd; Best Aviation Limited; Air Asia Dhaka Office; Air France/ Srilankan Air/Royal Nepal ; Air India IR; Asiana Airlines; Continental Air GSA; Philippine Airlines; All Nippon Airways -Japan base airline. Air Mauritius; Air Macau; GSAJetAge Air Services Ltd; Royal Bhutan Airlines; Aeroflot; British Airways BA;

Buyer needs and requirements

According to the buyer needs, airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Airlines vary from those with a single aircraft carrying mail or cargo, through full-service international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intra-continental, domestic, regional, or international, and may be operated as scheduled services or charters.

Service innovation
Years ago, airline automation was focused primarily on the behind-the-scenes processes for making travel happen -- reservations, ticketing, payment transactions, schedule management, etc. The next big wave in automation, and travel technology overall, will focus less on "the process" and more on "the people." Moving forward, it will be more about how technology can enhance and improve the travel experience from booking to baggage. Technology will deliver airline customers an engaging, more "humanized" interaction. This could mean personalized travel itineraries pushed to your cell phone or digital "identities" to speed security clearance or personal GPSs to ease navigation of airports and destinations. It's ironic that technology will ultimately deliver a more "human" experience in travel. But it will be critical if airlines hope to continue to successfully meet the needs of future customers. Now people expect more choice and options in how, when and where we fly. We are seeing innovations in seating, comfort and amenities, especially in the business and first-class cabins. Many airlines are also offering more in-flight services and entertainment, including access to the Internet.
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Increasingly, airlines are also experimenting with a la carte offerings -- giving passengers a choice of fare groups and then letting them add or deduct additional services such as premium seat selection, bonus mileage, access to airline lounges and the like. Continued innovation represents an important opportunity for travelers to get what they want while enabling airlines to differentiate themselves and build brand loyalty.

Pace of technological change

If the industry is characterized by rapid pace of technological change then the art of the state technology is imperative for the success of organizations. For example Industry of mobile phones requires rapid changes in the technology in order to meet the changing consumer demands. Three big technological changes areThe Bar Code We recently saw the end of good old paper tickets, and we may soon see the end of the boarding pass. Major carriers all over the world have agreed to a standard for cell phone check-in. Heres how it works: When you purchase an airline ticket, you will register your cell phone number. You will then receive a bar code via text message. When checking in, airline employees will be able to scan the code directly from your phone. For some people, this might seem like a great step forward in making check-in more efficient. Others are still angry they got rid of regular tickets. For those of you who do feel better with a piece of paper in your hand, you will be able to receive the bar code via email and print it out. The Millimeter Wave (whole body imaging) The TSA announced that it will be testing a new security tool at Phoenix Sky Harbor. Using beams of radio frequency, the Millimeter Wave creates a three-dimensional image of the body, with facial features blurred for privacy, (that) is displayed on a remote monitor for analysis. For now, the Millimeter Wave can be used on a voluntary basis in place of a pat down when secondary security screening is required. This is another technological advance that could split public opinion. Ive already talked to some people who think its exactly the type of security that our airports need, while others are not eager to use it at all. The Touch Screen Flight too long? Had to wait to take off? Its OK. Just play some poker and enjoy. I wrote about the magic of the in-flight touch screen in an earlier post. However, the touch screen could be primed for bigger things. Virgin America allows you to order food; find MP3s; and generally entertain yourself throughout your flight with a little screen in the seat-back in front of you, Delta has brought touch screen poker and a range of other games to certain flights (generally transcontinental), and a number of international carriers offer personal in-flight entertainment systems. Boeing also intends to put in-flight entertainment systems into its Dreamliner. As the battle to stay competitive wages on between the airlines, we should see the touch screen become a more common part of the flying experience.
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I know new technology is not loved by all, so I would like to hear what our readers think about these and other tech changes the airlines want to make. Love them? Hate them? Or, reserving judgment?

Vertical integration
We explore patterns of vertical integration in the Bangladesh airline industry. Major airlines subcontract portions of their network to regional partners, which may or may not be owned. We investigate if ownership economizes on ex post renegotiation costs. We estimate whether airlines are more likely to use owned regionals on city pairs with adverse weather (which makes adaptation decisions more frequent) and on city pairs that are more integrated into the major's network (which raises the costs of having adaptation decisions resolved suboptimally). Our results suggest a robust empirical relationship between adaptation and vertical integration in this setting

Economies of scale
In this article we use four different indices to measure cost performance of the Bangladesh Airline Industry. By using the number of routes as an indicator of Network Size, we are able to estimate indicators of Economies of Scale and Spatial Scope. By estimating total and variable cost functions we are also able to calculate an index of the excess capacity of the firms. For this purpose, we use data from the years 1984 to 1998, a period during which several deregulation measures were imposed on the European airline industry. Some of the implications of this deregulation process for the cost performance of the industry are presented and discussed. Our results suggest that in the year 1998, almost all the firms had Economics of Density in their existing networks, while several of the firms also had Economies of Scale and Economies of Spatial Scope. All of the firms had excess capacity of fixed inputs. These results support our hypothesis that fusion, alliance, and merger strategies followed by the principal European airlines after 1998 are not just explained by marketing strategies, but also by the cost structure of the industry. Organizations must also know about the different economies of scale in purchasing, manufacturing, and other activities. They should analyze whether the companies with high scale operations has any cost advantage or not. Any reduction in the cost of production leads to higher competitiveness which ultimately results higher profits.

Capital requirement
Local aviation authorities are drafting changes to existing regulations including higher chartered capital requirements for new airlines in a move to prevent unqualified investors from joining the increasingly competitive market.
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New airlines must have at least VND300 billion (US$14.6 million) if they register one to 10 airplanes for domestic services, or VND100 billion (US$9.7 million) higher than the current requirement, according to the draft changes to Decree 76/2007/ND-CP issued in May 2007 to govern civil aviation activities. Vo Huy Cuong, director of Air Transport Department at the Civil Aviation Administration of Vietnam (CAAV), told the Daily that higher chartered capital would also be a must for new operators of international services. Investors will have to guarantee their chartered capital of at least VND800 billion (US$39 million) rather than VND500 billion (around US$24.4 million) as currently if they want to have their new airlines to be licensed to use one to 10 aircraft for international flights. New airlines registering more than 10 aircraft for international services will have to secure VND1 trillion (US$48.7 million), or VND200 billion higher than the existing requirement. The aviation authorities want to set higher capital levels following the devaluation of Vietnamese currency against the U.S. dollar earlier this year and rising operational costs. Therefore, investors without substantial financial sources should be discouraged from taking part in Vietnams aviation market. Indochina Airlines is a case in point. Licensed in May 2008 with chartered capital of VND200 billion, this private carrier was grounded in losses and debts about one year its first commercial passenger service took off in November in the same year. Indochina Airlines had its traffic right revoked and its business license being decided by aviation authorities. The authorities have proposed in the draft regulations that a new airline will lose its business license if it does not begin flights 18 months after it is licensed, or four months shorter than detailed in the existing Decree 76. To prevent ailing airlines, the draft ruling sets a strict condition for new airlines to obtain an aircraft operator certificate one year after it is licensed, instead of two years at the moment. If an airline has its AOC withdrawn for violations linked to safety standards, aircraft operation and maintenance, it will have to correct all relevant problems within 12 months otherwise authorities will revoke its license. In reality, aviation authorities have not revoked the license of any airline. In addition to Indochina Airlines, another private carrier VietJet Air got its business license in December 2007 but this VND600-billion airline has for several times sought approval to delay its maiden flights. Despite a host of stricter regulations, the draft changes will contain favorable conditions for new players in terms of licensing procedures and capital contribution. Investors will not be required to place chartered capital in their bank accounts until they submit final dossiers and their plans for establishment of new airlines have been agreed.

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Investors will be able to use their real estate assets as capital contribution in a new airline but their cash proportions will not be less than two-thirds of the required chartered capital. SGT. As huge capital require so entry exit barriers are high.

Conclusion
This airlines industry has great impact on economic indicators in Bangladesh. Airlines contribution on GDP (constant prices, % change) In 2007 it was 6.305; In 2008 it was 5.959;In 2009 it was 5.789; In 2010 it was 6.023. GDP Per capita (current USD price) in 2007 was 468.888, In 2008 it was 527.887; In 2009 it was 583.973; In 2010 it was 637.908. GDP based on PPP per capita GDP In 2007 it was 1,324.97; In 2008 it was 1,414.46; In 2009 it was 1,489.39 In 2010 it was 1,572.34. Inflation (% change) In 2007 it was 9.109; In 2008 it was 8.9; In 2009 it was 5.426; In 2010 it was 8.235. Population (mill); In 2007 it was 157.753; In 2008 it was 160; In 2009 it was 162.221; In 2010 it was 164.473 According to these above indicators GDP(%) in Bangladesh was in 2007 it was 1.121; in 2008 it was 1.917 in 2009 it was 3.311 in 2010 it was 1.389. Finally we can say that above economic dominant factors influence the economic indicators. Thus airlines industry is dominating our countrys economy.

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