Why do people continue to invest in new airlines? What will be ...

[roselinechinyere27m]

Question 1

Differentiate between the roles played by Sectur and FONATUR.
 
  What will be an ideal response?

Question 2

Why do people continue to invest in new airlines?
 
  What will be an ideal response?

[Alyson.hiatt@yahoo.com]

Answer 1

Sectur is charged with carrying out tourism promotion strategies nationwide and abroad. FONATUR is in charge of planning and developing large tourism projects represented by Cancun, Los Cabos, Ixtapa, etc.

Answer 2

There is no answer for this other than the fact that many people in and out of the travel industry still have a sense of romance about the early days of air travel when it was new, exciting, and conveyed a sense of adventure. Those attracted to the idea of starting a new carrier come in all shapes and sizesexecutives given golden parachutes at airlines that have merged or are down-sizing, venture capitalists who otherwise follow hard and fast rules when they look at potential projects in other industries but relax these standards when presented with a plan for a new airline, and dreamers who think they have a better idea that the marketplace will accept but fail to do market research to determine if anyone would support their ideas. Most plans for start-up carriers I have reviewed have little chance for success, but the people behind these ideas don't want reality to intrude on their dreams. More new carriers will continue to be proposed in the future, and the vast majority will either never get born or will fail within a couple of years after launch because the enthusiasm of the founders and investors will override consideration of hard facts. But the topic is an interesting one for students to discuss.