The Current Global Economic Crisis Would Change the Face of the Aviation Industry as We Know It Today- Is There Truth in the Statement?

The sector employs more than 3 million people. Prior to the 1990’s, the air transport industry in Europe had been traditionally highly regulated and dominated by national carriers and state owned airports. Since then a single market for aviation has been created. The single market has seen the removal of all commercial restrictions for airlines flying within Europe. These include restrictions on routes, number of flights and the setting of prices.

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

At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.

Given these points, Bombardier Canadian transportation company being the leading company has brought down the aviation market along with the labor market affecting other factors. The key economic points proven with this current event are how shifts affect the price and quantity consumers want to purchase and are willing to pay price. Yet, the Bombardier company is struggling to gain back the buyers and their willingness to pay the value for aircrafts in order to increase their demand of aircrafts market and labor

JetBlue’s is societal aspects that are affected by external forces as well. I would break it down into four categories to mainly focus on this societal area. They are listed as follows: Economic, Technological, Political-Legal and Sociocultural. Looking at the economic aspect, the economy has gotten much better since 2008-2009. There is more income being dispersed around the country. Also, if you are looking at the current price for oil, that should not be an issue for airlines right now. The technological aspect shows us how well the ticketing and self-service check-in are doing. Another thing that could be helpful is even allowing credit cards to be used on flights for more purchases. The Internet has become a great tool for our society. It allows us to even search around and find the cheapest flights around. The political-legal aspects that have an effect could be the fear of terrorists. I know since 9/11, airplanes have been one of the safest ways of transportation with all the rules and regulations. Another important part that of this aspect is the effect on oil because of certain internal wars over in the Middle East. Finally, the sociocultural aspect shows us that people have different opinions on certain topics. For example, I know many people are probably worrying about the Zika Virus if they are on a plane that has come from a country that is known for having it or if they are traveling to one of those countries. People want to be updated and know that they are in

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.

9. Alternative forms of transportation, such as a high-speed railway, could weaken demand for air

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

According to Liu (2012), the U.S has the biggest economy in the world and its 17% proportion of the global GDP is testament to that. The U.S economy is comprised of various sectors and one of the most vital sectors is the aviation industry, which falls under the transportation and logistics sector and is a major source of growth for the U.S economy in terms of revenue, capacity building and human development. This highlights the importance of the domestic aviation industry, and any factors that affect this industry are bound to have effects on the entire economy.

The airline industry is interpreted as being very unstable due to the immediate reaction to tragedies. The airline industry was affected following the September 11th tragedy and it affected other industries indirectly. The airline industry plays a key role in

Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010).

4. Several major airlines filed for bankruptcy. Many airlines significantly decreased their capacity, reduced their routes and postponed purchases of new aircraft. Some airlines reported a 50% reduction in routes and flight frequency. All these events provided opportunities for the low-cost carriers not only to increase the number of flights but also to introduce services on new routes.

Because the number of airlines place decreases, the number of flights in Heathrow Airport will decrease overall. Although the demand and supply curve to remain in their original place, the quantity supplied will contract from Qeq to Q1. The production of airlines is not at equilibrium, and it is at inefficient level of production, as the community surplus is not maximised.

impacted by unforeseen factors like a crisis (see appendix I). So demand for air traffic decreases during times of economic distress or simply when the growth slows down. This causes overcapacity and therefore lower fares and yields. The effects of the change in the industry, however, might show lagged in time. Also the factor causing the industry’s downturn can intensify or