Write 7 pages with APA style on Competition in the Airline Industry. Fares by these airlines are dependent on this competition and every airline these days is trying to minimize the fare rates so that they can get on top of the industry. Previously it was seen that airlines provided their customers with limits to carry baggage and if the customer was willing to carry baggage which was higher than the limit then he had to pay for the additional baggage. The amount of baggage previously allowed by many airline companies was high enough but nowadays it is seen that the limits have been reduced. At an average, it is seen that for international flights the airline companies are almost allowing 23 kg of baggage per individual. And anything which has a weight of more than 23 kg would be charged by the airline companies. Similarly, it is also seen nowadays that the airline companies are charging for hand carry bags which previously was not seen. The question now arises as to why the airline companies are adopting such a policy. Many believe that carrying baggage is a necessity for every individual in the world today and hence the airline companies are taking benefit of this very necessary to charge the customers even higher. However, if viewed from an accounting perspective it can be seen that the airlines are trying to balance out different costs that are incurred by them. This assignment would further revolve around the aspect of baggage and as to why airlines are charging excessively for the amount of baggage carried by their customers (IT Review 2009. Business Denver Journal 2008).
Nowadays with growing competition in the airline industry, it is seen that airlines are trying to minimize their expenses such that they are able to survive in the market. With such a policy every airline is attempting to attract more customers towards it so that it can increase its rate of profitability. In the .airline industry today many companies are charging extra for the baggage carried by the customers and they have specific reasons for such a policy. .