The As customers are becoming more informed due to

The air cargo industry accounts for only 1% of whole cargo industry, but the values it transports, is worth 35% of whole industry. They are valuable customers for airline industry. Goods they are transporting is valuable commodities and requires unique services e.g. Capacity considerations (volume, weight, hazmat, and dimensional), highly controlled transport, direct routing and reliability. Since it requires premium service to transport such good, airlines are charging high price and the customers have less bargaining power.2.2. Variables influencing bargaining power of buyers: There are various factors which have a significant impact on the bargaining power of buyers. Therefore, we divided them in 5 following segments: 2.2.1. Product and services:The airline Customers have a high bargaining power because there is no much product differentiation among different airlines. Almost all airlines are providing the same services. Therefore, airline companies always try to get competitive advantages over other companies, which includes greater legroom, on flight entertainments, on ground services. They do that in order to differentiate themselves from others and justify price they are charging.2.2.2. Online portals: With the evolution of online ticket booking applications, now buyers have easy access to different prices over internet. More informed customers have high bargaining power as they can compare different airlines online and choose options according to their need. 2.2.3. Low switching cost: Airline industry has low switching cost which means that customers face negligible costs of choosing another airline, which gives them higher value. There are factors such as frequent flyers miles and flag carrier which has their effect on switching cost. Airline usually provides free miles to overcome switching of traveler’s, however this has not deterred customers from switching by large extent.2.2.4. Price sensitivity: As customers are becoming more informed due to technology (online information about prices), they are becoming price sensitive. Previously, business traveler segment was not price sensitive but now corporate booking travel tickets are pushing price competition higher for this class too.