Business risk in passenger civil aviation - in search of sources of instability in the sector
DOI:
https://doi.org/10.33119/SIP.2025.201.2Keywords:
airline business, business risk, macro-environmentAbstract
The businesses in passenger aviation sector are characterized by high instability. It is induced by frequent changes in the macro-environment of the sector as well as in the sector itself that have a significant impact on business activities. Thus, the sector is characterized by a high level of business risk, which describes the possibility (likelihood) of such changes occurring. The following study discusses the issues of business risk, particularly the types of business risk that have the greatest impact on the operation of airlines, airports, air navigation service providers and other entities that make up the sector. The study employs a case study method of selected cases that represent the materialization of various business risks typical of the passenger air transport sector. The analyses conducted indicate that the type of risk that can potentially have (and historically has had) the greatest impact on the sector is political risk (including geopolitical and regulatory risks), as events related to these factors often affect the fundamentals of passenger aviation.
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