The demand for air services is derived from the demand for the products of business and leisure activities. A community's rising level of income stimulates the demand for air travel in two main ways, a rise in private disposable incomes leads to higher expenditure on leisure travel and higher economic activity increases the demand for business travel. ... Attitudes to Work and Leisure Business travel is generally less sensitive to changes in airfares than leisure travel. ... Leisure travel is usually at personal expense and is often planned well ahead. ... This can have a negative effect ...

• Word Count: 4942
• Approx Pages: 20
• Has Bibliography
• Grade Level: Undergraduate

The KLM group has four main activities: passenger air transport, cargo transport, maintenance services and the operation of charter and low-cost/low-fare scheduled services by its subsidiary Transavia. ... The Air France group has three main activities: passenger air transport, cargo transport and maintenance services. ... Synergies expected to be established by the acquisition: Preservation of own brand and identity while capitalizing on the strengths and complementarities of both airlines Creation of greater opportunities for employees Emerging as a strengthened airline group Rei...

• Word Count: 4298
• Approx Pages: 17
• Has Bibliography
• Grade Level: Undergraduate

The bargaining power of buyers: The customers can be broken down into two main segments: business and leisure. Because business travelers often book flights at the last minute and frequently have their organization pick up the tab, they tend to be relatively price-insensitive, so high inelastic; Instead, the demand for air tickets among leisure travels is fairly price elastic. ... This makes the frequent flier programs a powerful tool in the leisure market as well. ...

• Word Count: 3996
• Approx Pages: 16
• Grade Level: Undergraduate