Book Why Can't We Make Money In Aviation Term Paper

PAGES
5
WORDS
1495
Cite

¶ … 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,...

...

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.

War Overseas

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 survey shows 19% of all American…

Sources Used in Documents:

References

Bluejay, M. (n.d.). What's Wrong with Bicycle Helmets? Retrieved from Bicycle Safe: http://bicyclesafe.com/helmets.html

Bowser, B. (2003, April 2). On the Homefront: The Airline Industry. Retrieved from Pbs.org: http://www.pbs.org/newshour/bb/transportation/jan-june03/airlines_04-02.html

News, A. (2003, April 4). SARS Spread Leads to Fear, Questions. Retrieved from ABC News: http://abcnews.go.com/Health/ColdandFluNews/story?id=116751&page=1#.UKa064dZWSo

Pilarski, A. (2007). Why Can't We Make Money in Aviation? Burlington: Ashgate.


Cite this Document:

"Book Why Can't We Make Money In Aviation" (2012, November 16) Retrieved April 20, 2024, from
https://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.20 April. 2024. <
https://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.20 April. 2024,
https://www.paperdue.com/essay/book-why-can-t-we-make-money-in-aviation-76495

Related Documents

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

Money in Aviation in the
PAGES 4 WORDS 1061

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

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

Logistics in Aviation Aviation logistics: Competitive advantage and technological innovation Prelude In the modern era, the worldwide logistics and supply chain is very cut throat and keeping an edge over others is important for all the firms in operation. Worldwide competition in aviation logistics business is cut throat with numerous firms. Firms in this business survive only when they maintain an edge over their rivals in the business in order to keep the

Aviation Management is a complex issue in any environment. In the 21st century environment Aviation Management faces many challenges. These challenges are related to Globalization, Challenges specific to legacy airlines, Air Traffic control shortages and Ethics including the impact of greenhouse gas emmissions. The purpose of this discussion is to examine the Challenges of the 21st century in Aviation Management and the forces of change. Globalization Challenges for Legacy airlines Like any industry,

AVIATION CIVIL AVIATION'S SARPS Civil Aviation's SARPs Civil Aviation's SARPs The primary objective of aviation security relates to airport infrastructure protection. The agencies also insist on the need to control people's access within protected areas. This essay discusses the roles and contributions of International Air Transport Association as well as the International Federation of Air Line Pilots' Associations to the aviation industry. The world's airlines have a trade association called IATA. The organization hosts primarily