Vertical Integration in Aviation

Vertical integration in aviation refers to a business strategy where a company controls multiple stages of its production process or supply chain. For instance, an airline might not only operate flights but also handle aircraft manufacturing, maintenance, or fuel supply. This approach can enhance efficiency, reduce costs, and improve quality by minimizing reliance on external suppliers. In essence, vertical integration allows companies to streamline operations and better respond to market demands, potentially leading to greater profitability and competitive advantage within the aviation industry.