Flying And Flying: An Economic Frontier For America

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

When the 20th century began, no human being had ever flown in a powered aircraft. By the end of the century though, Flying had become a common thing for millions of people, And some of us even flew through space and visited another planet. Today, it is farely common to take a flight anywhere in the world, something people only 100 years ago couldnt fathom.

The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.

The day of 9/11 sparked the attention of the aviation industry, citing that it will never be the same again. Different sectors

Flight has become romanticized by humanity, it provides “Freedom”. Throughout the majority human history, humans have used land and water for their transportation needs. The invention of the airplane opened the use of a third medium, air. Flight only has the illusion of freeing us from earth. Airplanes would not be able to maintain flight without their ground based systems. These systems are arranged along flight corridors or airways. The Transcontinental Airway was the first major flight corridor constructed in the United States. The ground systems constructed along these corridors have made major impacts upon the landscape of the early 20th century.

The reorganization of how the government will create regulations for aviation has now come to its final home, the future of United States day to day aeronautical operations is now the responsibility of the FAA. The Federal Aviation Act of 1958 was a big step that the government took to getting to how we know Aviation today. When you think of United States Aviation the FAA usually comes to mind, and for good reason, the FAA has been a huge component in shaping new technologies and ways of running the National Airspace System (NAS). All of these contributions to the advancement aeronautics, through the FAA, could not have been possible if it weren’t for the reconstruction of government involvement in aviation. From the Air Commerce Act of 1926, to the Federal Aviation Act of 1958, the government has had a significant influence on how we conduct day to day aeronautical operations, ranging from reducing emissions, to improving navigational systems, and ATC

In 2012, the United States of America's Federal Aviation Administration (FAA) was directed to integrate the use of Unmanned Aircraft Systems (UAS) with the National Airspace System (NAS). This was after a report indicated that there was a lot of opportunity which had remained unexploited by prohibiting the use of drones. Realistically, the use of UAVs for commercial purposes will create more financial and job opportunities considering the fact that the UAV is flexible and they require low operation and maintenance costs. However, for this to happen, there should be clear rules and regulations which will govern the purchase and the ultimate use of unmanned aerial vehicles.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.

Another emerging trend in the past five years has involved the progress made on open skies agreements between the United States and other countries. Open skies agreements serve to liberalize Orlando International Airport transport markets between the two signing countries or parties in the agreement. These agreements remove government restrictions, such as limits to the number of flights any one airline is allowed to operate per week between countries. The removal of these limitations has opened some routes up to increased competition, by allowing Orlando International Airport to fly more frequently and making these routes more accessible. Orlando International Airport could not previously justify the capital expense of operating on routes with limited flights are now able to profit on routes with high demand.

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

There have been few inventions to change how people live and experience the world considerably as the creation of the airplane. Today, traveling by air has become the norm and it would be difficult to imagine life without it. Air travel has improved the way people are able to conduct business by shortening travel time and changing their thought of distance. The companies within the airline industry exist in a very competitive market. One of those companies, Southwest Airlines, features low-fare, no-frills air service with frequent flights of mostly short routes. Costs are kept down by the exclusive use of Boeing 737 aircraft, which allows for low maintenance costs and quicker turnaround times for flights, and by an emphasis on ticketless travel (Encyclopedia Britannica). This paper will address two segments of the general environment and how they affect Southwest and the airline industry; evaluate how Southwest has addressed two forces of competition; predict what Southwest might do to improve its ability to addresses these forces; assess the external threats affecting Southwest; discuss Southwest’s greatest strengths and most significant weaknesses; determine Southwest’s resources, capabilities, and core competencies; and analyze their value chain.

In examining the history of aviation in the U.S. and the development of the airlines, it is clear that the Federal Government played a vital role in the development of both. Historical records clearly show that this involvement by the Federal Government was critical in getting them established and in helping to develop them into the globally dominant enterprises they are today. Furthermore, it can be easily argued that U.S. aviation as a whole, and the airlines in particular, would not be where they are today without this direct involvement by the Federal Government and some of the very specific actions that it has taken to keep them relevant and competitive during the most dire of times. The Federal Government ensured that U.S. aviation and its airlines would develop and achieve a worldwide leadership role by becoming involved in three major ways: through funding, legislation, and policy setting.

Aviation contributes approximately 2 percent of total greenhouse gas emissions, a figure which is projected to grow through 2050. Although fuel efficiency has improved by nearly 16 percent since the 1990s, future technologies—including better flight patterns, more-efficient engines, and alternative fuels—have promise for further emissions reductions. The profitability challenges of the early twenty-first century, however, affect the industry's ability to invest in new technology. (Hill, 2010 17-22)