The Impact Of Air Travel On The World Economy

Cowper-Smith & de Grosbois (2011, p.59) stated that airlines are not currently focusing enough on their social responsibilities, an area in which Qantas should look to be at the head of their industry. The way in which Qantas operates can have monumental impacts not only on their customers but to the environment itself. Planes although a current need in society also come with a heavy amount of baggage which influences the environment. Aircraft noise, impact on local air quality are just some of the by-products of aircraft travel (Goodman, 2009 p.14). The most discussed and criticised issue within aircraft travel in the modern climate however, is the affect that it has on the environment. This is due to amount of emissions in which are consumed through aircraft travel. Shell aviation the “leading global supplier of world-class aviation fuel and lubricants” supplies almost 7000 aircrafts with fuel each day, refuelling a plane every 12 seconds. Qantas airlines should be knowledgeable on how much fuel they are using and the type of fuel they are using. Pollution resulting from greenhouse gasses and emissions can result in horrific consequences for the environment. Examples of costs that Qantas may endure from its impact on the environment could be adding to the growing concern of global warming throughout the world (Kolstad, 1996 p.1). This is leading to issues such as sea level rising, melting of snow and ice and changes to plant growth and nutrition

Jetstar introduced a passenger Carbon Offset scheme in 2007 in accordance with the government’s “Greenhoues Friendly” initiative (

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

In today’s business industry, the globalization process has become an important aspect and fundamental force. The elements that contribute to globalization is the environment, culture, regulation and technology and production. While the advancements globalization has increased greatly, so has the advancements in airline industry with their aircraft (Shevell, 1999). Globalization also provides a great amount of potential profits to nations and their corporations (Button, 2008). Air transportation has evolved into a major industry (Kroo, 1999). The airline industry’s continuously grows and is facilitated through its international investment, tourism, world trade and economic growth (Kroo, 1999).

The objective of this research paper is to describe how the 21St Century utilized concepts , such as corporate social responsibility in relation with triple bottom line, to shift the airline industry into becoming a forward-thinking industry embedding sustainability into their core of business operations to create shared value for business and society. I will define corporate social responsibility and areas of social responsibility in the airline industry at the beginning of the paper and proceed with how it ties into the bottom line concept. Next, I will give brief examples of airlines such as JetBlue Airways, and British Airways how they apply these concepts into their mission. In conclusion, I will express my own thoughts about how different generations based their purchases and career decisions on these concepts.

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.

Economic, social-cultural, and technological forces are the external macro-environmental factors Southwest Airlines should be most concerned with. Weak economic growth reduces the purchasing power of an airline’s target market. Southwest, known for being a leader in low cost airline, provides flights at a higher frequency and capacity to attain profit. However, the company experienced increasing overhead through the lapse of long-standing fuel contracts, which previously helped provide a competitive advantage. This factor is also amplified by the growth the company experienced with success. Southwest is the fourth largest airline and has seen fuel cost skyrocket from 29 percent to 35 percent over a seven-year period.

The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.

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.

Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market

This explosion provides research of how the UK Economy contributes to the Aviation industry in various way with the standard points and innovation – have impacted on UK economic growth through the Aviation industry. By this report, contribution to UK economy has explained such as trade, tourism, employment and government tax. This report will pay particular attention in trade contribution current status, value added contribution details of Tourism impact, direct and

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

Does having access to direct international flights impact the attraction of foreign direct investment (FDI) and the strength of a local and regional economy? This paper attempts to answer this question through a two-phased research project: 1) a literature review, and 2) a case study of a possible direct international flight from Cleveland Hopkins International Airport located in Northeast Ohio to Frankfurt, Germany. The choice of international flight was based on the existence of German companies in Northeast Ohio, particularly in the automotive industry, the region’s potential to attract German companies, and the available connections between Frankfurt and other destinations in the world.

Media has a great impact on customer’s choices. Budget airlines have recently been mentioned by the Media as the least environmentally friendly way to travel. In society concern with ‘green issues’ budget airlines may need to switch in close future their marketing focus from rock bottom fares to environmental responsibility.