THE IMPACT OF GOVERNMENT POLICY ON AIRLINE PROFITABILITY

Abstract

The primary goal behind this study was to identify themes in expert opinion to determine if regulation adversely impacts the profitability of airlines. Safety and compliance officers for airlines were the selected study population due to their understanding of balancing safety with sustained profitability. A survey was utilized for the collection of data, and a qualitative method was used to derive themes from respondent answers. Qualitative analysis of the topic was necessary due to the complex macro-economic factors impacting airlines. Through the expert-accreditation approach, valuable themes were discovered that clearly indicated the perceived impact of regulation on the profitability of airlines. When analyzed, this data lends credence to the supposition that regulatory reform is necessary in the aviation industry. Furthermore, the data can assist regulators and airline lobbyists in determining the most beneficial manner reform can be implemented in the aviation industry.