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Despite various negative forecasts, the airline industry got back on track soon afterwards. Not only did the demand not fall, but it underwent significant increases.
Another element which could affect the functioning of the airline industry in a negative manner is represented by the concerns for the environment. Leaving aside the issue represented by the phonic pollution, aspects such as global warning may become an important concern for the airline industry should the issue gain a high importance on the public and political agendas. So far, however, the issue did not manage to influence people's choices regarding travelling by airplane, regardless of the attempts made in this directions by various politicians. (Pickard, 2006)
How the economy affects the success of your chosen industry
Economy can play an important part on the functioning and development of the airline industry. From this point-of-view, it can be stated that, just like any other industry, the airline one functions depending on the relations between supply and demand. Both supply and demand are under the influence of economic mechanisms.
The success of the airline industry depends on various policies and regulations adopted at economic level. Under these circumstances, one can underline the importance of the regulations regarding the minimum wages or the price of fuel. Regardless of these aspects, it can be stated that the efficient functioning and the successful development of...
A rich economy is translated into a higher standard of living, and therefore into an increased demand for a variety of services including the ones provided by the airline industry.
Bibliography
Gopwani, J. (2007, April 26). NWA, flight attendants reach deal. Retrieved May 17, 2007, from Freep.com Detroit Free Press Web site: http://www.freep.com/apps/pbcs.dll/article?AID=/20070426/Business05/70426029/0/ENT03
Mankiw, N.G. (2004). Principles of economics (3rd ed.). Chicago, IL: Thomson South-Western.
McCabe, R.M., PhD. (n.d.). Airline Industry Key Success Factors. The ability for airlines to succeed today is measured according to several key success factors. Retrieved May 5, 2007, from Pepperdine University Web site: http://gbr.pepperdine.edu/064/airlines.html
Muskin, J.B., & Sorrentino, J.A. (February 1977). Externalities in a Regulated Industry: The Aircraft Noise Problem. The American Economic Review, 67 (1), 347-350. Retrieved May 5, 2007, from JSTOR Web site: (http://links.jstor.org/sici?sici=0002-8282(197702)67%3A1%3C347%3AEIARIT%3E2.0.CO%3B2-4
Pickard, C. (2006, October 9). Global Warming fears fail to dampen demand for air travel. Retrieved April 21, 2001, from OAG data Web site: http://www.oag.com/oag/website/com/OAG+Data/News/Press+Room/Press+Releases+2006/Global+Warming+fears+fail+to+dampen+demand+for+air+travel+0910064
Satarupa, D. Dr. . (2005, April 28). The Concept of Elasticity in Economics. Some Applications of Price Elasticity of Demand. Retrieved April 21, 2007, from Northern Virginia Community College Web site: http://www.nvcc.edu/home/sdas/elasticity/applications.htm
Bibliography
Gopwani, J. (2007, April 26). NWA, flight attendants reach deal. Retrieved May 17, 2007, from Freep.com Detroit Free Press Web site: http://www.freep.com/apps/pbcs.dll/article?AID=/20070426/Business05/70426029/0/ENT03
Mankiw, N.G. (2004). Principles of economics (3rd ed.). Chicago, IL: Thomson South-Western.
McCabe, R.M., PhD. (n.d.). Airline Industry Key Success Factors. The ability for airlines to succeed today is measured according to several key success factors. Retrieved May 5, 2007, from Pepperdine University Web site: http://gbr.pepperdine.edu/064/airlines.html
Muskin, J.B., & Sorrentino, J.A. (February 1977). Externalities in a Regulated Industry: The Aircraft Noise Problem. The American Economic Review, 67 (1), 347-350. Retrieved May 5, 2007, from JSTOR Web site: (http://links.jstor.org/sici?sici=0002-8282(197702)67%3A1%3C347%3AEIARIT%3E2.0.CO%3B2-4
Pickard, C. (2006, October 9). Global Warming fears fail to dampen demand for air travel. Retrieved April 21, 2001, from OAG data Web site: http://www.oag.com/oag/website/com/OAG+Data/News/Press+Room/Press+Releases+2006/Global+Warming+fears+fail+to+dampen+demand+for+air+travel+0910064
Satarupa, D. Dr. . (2005, April 28). The Concept of Elasticity in Economics. Some Applications of Price Elasticity of Demand. Retrieved April 21, 2007, from Northern Virginia Community College Web site: http://www.nvcc.edu/home/sdas/elasticity/applications.htm
Airline Industry Analysis This report aims to present a summary of findings for a research study regarding the airline industry. The objective of this project was to first, gain new experience in the analysis process of an entire industry from an economic and business perspective as well as an environmental and social viewpoint. Secondly, the research attempts to provide direction for potential employment opportunities within the various aspects of the direct
One-to-one marketing allows premium pricing as well as increased sales volume to particular unique micro markets. Studies show that as customer satisfaction and loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value that other alternatives do not provide (Giddens, 2002). Long-haul international business travelers and short/medium-haul domestic business travelers are the customers that
S. are seeing modest improvements in economic indicators. The social environment is favorable for air travel. The mode still holds tremendous cachet with consumers and is favored when consumers can afford it. There is some consideration that the airline business is a major contributor to greenhouse gases and therefore global warming, but as of yet the industry has not come under serious public pressure as it is generally viewed by the
Innovation is our signature. We foster creativity and vision to provide solutions beyond today's boundaries ("FAA Mission)." JAA The Joint Aviation Authorities (JAA) was developed in the 1970s by a handful of major European National Aviation Authorities when they began to join activities. The JAA was established for the purposes of developing a platform for a cooperative safety regulatory system because they desired to have a uniform high standard of aviation
Introduction Infrastructure assets, although very beneficial to society are often marred with high profiled accidents and deaths. Industry segments such as trucking, rail transportation, and ocean shipping have all experienced very high profile and deadly accidents. Although the statistics indicate the many of these activities are safe, occasionally accidents occur that can adverse consequents for not only the company, but the industry overall. The airline industry is not except for this
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