Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
Money in Aviation: An Examination of Support
The history of American flight is generally one of pride and wonder. Historical figures associated with the first airplanes are generally revered by history books and society as a whole. These are figures like the Wright brothers, Amelia Earhart, Charles Lindbergh and others who most agree made a positive impact on human life and symbolize a leap of mankind towards advanced technology and increasing modern times. Modernity. Technology. These are all things that airplanes and flight represent to Americans and they're widely viewed as things which have improved life on this planet for the better. This begs the question as to why the airline industry still remains one of the most volatile, low (or no) profits business around. The book, Why We Can't Make Money in Aviation, by Adam M. Pilarski, seeks to both scrutinize and illuminate the general failure of the airline industry to reach stable and consistent profitability. While some might say the text is heavy handed, it actually represents as a whole, a fair and comprehensive overview of the airline industry, its attributes and shortcomings.
The Ten Plagues
Pilarski opens the text of the book in a smart and succinct manner. Pilarski calls attention to the most catastrophic event to happen to the airline industry in its entire history: the terrorist attacks of 9/11. While Pilarski does give those events the acknowledgement for being as detrimental to the industry as they were (in fact, he even offers up a fact that most Americans aren't aware of: that government had a bailout plan for the airlines, in fear that the entire industry would go under and cease to exist), he does eliminate any and all illusions about the incident. One of the most effective elements of the text is that Pilarski does not waste any time specifying what he refers to as the ten plagues: these are all events that happened more or less in succession that have had essentially a crippling impact on the auto industry. Pilarski begins to state each plague immediately. The first plague Polarski highlights is the recession, a plague which is definitely not to be underestimated by any means. The recession was definitely global and the impact was pervasive: companies downsized, unemployment was up, house sales plummeted, foreclosures sky-rocketed, and consumer confidence in the economy was at an all time low. Because of the recession, "Traffic was down by midyear of 2001 and average passenger ticket prices were already falling" (2007, p. 2).
However, the combined fear of flying and increased security measures proved to be a truly detrimental combination: "A fear of flying set in after the 9/11 tragedy which further reduced profitability as passengers avoided air travel and traffic numbers dropped. Then security measures implemented to keep flying safe caused an increase in the actual time of completing a journey and in the unpleasantness of the experience" (Pilarski, 2007, p.2). The phenomenon is akin to bicycle helmet laws: once the laws go up regarding bicycle helmets: "The most significant result of a helmet law is to discourage cycling. That's because many would rather quit biking than have to wear a helmet, and because a law promotes the idea that cycling is an incredibly dangerous activity. Reductions in cycling by 33% to 50% are typical in places where helmet laws have been passed" (Bluejay). With airlines, once security measures became more intricate and involved, and thus, more unpleasant to the experience as a whole, it gave the entire act of flying the appearance of being unsafe, reinforcing the fears of 9/11.
Just as Pilarski highlights the detrimental combination of fear+increased security measures, he makes a similar connection between uncertainty+ wars overseas (2007). Pilarski reminds one how air travel dropped during the Gulf wars in 1991 and the years surrounding, and that U.S. involvement in Iraq and Afghanistan did not bode well for the airline industry. "People were afraid of flying not because of specific threats, but because of the increased atmosphere of uncertainty" (Pilarski, 2007, p.2). While it may be easy to forget in 2012, the atmosphere at the start of the 21st century, on the tails of 9/11 was riddled with doubt and uncertainty. "The war in Iraq has made things worse for the airline industry that was already reeling with financial problems. Just this week, American Airlines narrowly avoided filing for bankruptcy, and U.S. Airways emerged from Chapter 11, after cutting a billion dollars in costs...One…[continue]
"Book Why Can't We Make Money In Aviation" (2012, November 16) Retrieved October 23, 2016, from http://www.paperdue.com/essay/book-why-can-t-we-make-money-in-aviation-76495
"Book Why Can't We Make Money In Aviation" 16 November 2012. Web.23 October. 2016. <http://www.paperdue.com/essay/book-why-can-t-we-make-money-in-aviation-76495>
"Book Why Can't We Make Money In Aviation", 16 November 2012, Accessed.23 October. 2016, http://www.paperdue.com/essay/book-why-can-t-we-make-money-in-aviation-76495
Aviation Book According to Pilarski (2007), "the financial situation of the airline industry, especially in the U.S.A., has been between disaster and catastrophe," (p. 3). Financial wizards like Warren Buffet have made "bombastic pronouncements" related to the economic illnesses of the airline industry (9). Dynamic entrepreneur Richard Branson, himself seduced by the desire to own an airline, has likewise stated, "How do you become a millionaire? Start as a billionaire, and
Overregulation Finally, Pilarski reviews the explanations which blame airline underperformance on onerous government-imposed restrictions and obligations. Many observers, especially deregulation-fanatics, claim that airline companies are inhibited by excessive government regulation and public ownership of airlines. Pilarski rejects these explanations which attribute financial performance to government interference, stating that airline carriers outside of the U.S. subject to much more regulation have performed better than unregulated airlines. Analysis Overall, Pilarski seems to agree that it
The combination of such broad language and the paucity of any significant enforcement tools meant that these initiatives were largely ineffective. Not surprisingly, complaints from passengers increased by 200% within the year; furthermore, flight delays continued to increase 12% faster in the first five months of 2000 than in the same period in 1999. "Indeed, in the twelve months following the airlines' voluntary promises, flight delays cost business travelers 5
With the threat of terrorism remaining so strong in this country it is vital to find new and better ways to protect people and to keep them safe from harm as much as is humanly and technologically possible. Scope of the Study The scope of this particular study is very broad and far-reaching, because there are so many people who are being affected by it now and will be affected by
Behavioral Finance and Human Interaction a Study of the Decision-Making Processes Impacting Financial Markets Understanding the Stock Market Contrasting Financial Theories Flaws of the Efficient Market Hypothesis Financial Bubbles and Chaos The stock market's dominant theory, the efficient market hypothesis (EMH) has been greatly criticized recently for its failure to account for human errors, heuristic bias, use of misinformation, psychological tendencies, in determining future expected performance and obtainable profits. Existing evidence indicates that past confidence in the
This is important, because this flight school is larger and has a variety of programs to offer. If at some point, someone decides that want to study other forms of aviation, this school would be ideal at learning for much as possible. ("MVP Accomplishments," 2010) Mc Air Aviation offers students the ability to complete most of the course work, through a self-study format. Where, students will complete the basic written
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001). By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to