AIRLINE INDUSTRYFINALPROJECTECO205WK9 (2)

AIRLINE INDUSTRYFINALPROJECTECO205WK9 (2) - AIRLINE...

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AIRLINE INDUSTRY TINA SUGLIA AXIA COLLEGE OF UNIVERSITY OF PHOENIX NOVEMBER 2008 The Airline Industry has been around a long time, first starting around the early 1900’s. A successful flight by the Wright Brothers’ was one contribution in getting the Aviation Industry started. After this the Airline Industry began to grow during World War I, the government tried to wipe out the Aviation Industry, though with hardly any success. The Airline Industry began to grow more than it ever did before. Gaining more business from customers as the years went by, becoming one of the biggest, most successful industries in the world. The Airline Industry is needed for many reasons providing air transport services for customers and air freight. Leasing or ownership of the aircraft is how they are able to provide and supply services, which forms partnerships or alliances with other airlines for mutual benefit.
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Airlines can vary from a single airplane carrying mail or cargo, to a full-service international airlines operation. Airline services can be put into different categories like intercontinental, or domestic. Airline Industry largely contributes to economic growth, world trade, international investment and tourism. There are travelers for both business and leisure purposes which have grown strongly worldwide. The large aircraft Boeing 747 is used frequently and made more convenient and affordable for people to travel further to new and exotic destinations. Governments from other developing countries see that there are great benefits with tourism for their own economies. Business travel has grown as companies expand international in terms of their investments, their supply and production chains and their customers. However in 2008 the global airline industry has started to get on shaky ground, in fact this year alone they are losing about $6.1 billion in profits. Demerjian (2008) states that, “The situation is so dire the International Air Traffic Association issued a resolution on Monday at its annual meeting calling on the world's governments, airports and airline employees "to take immediate action to help the industry survive the growing financial crisis." The Airline Industry is clearly in trouble, due to decrease in people wanting to fly because of simply not being able to afford it. Economic times are tough right now as they have been in the past, but because of continuous lost business of millions of dollars it would not be surprising for the Airline Industry to declare bankruptcy. Some suggestions on how the Airlines can gain strength is to look at the way they run their business, so that they can re-construct and become more successful as an Industry. Unfortunately, there have been about twenty-four airlines that have gone under or gone bankrupt in the past six months. Compared to ten years back the Airline Industry has weakened in business through the years.
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When Airline tickets go up in price and the consumer is responsible for paying extra bagging fees and fuel fees. Consumers do not buy Airline tickets because they are too expensive
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AIRLINE INDUSTRYFINALPROJECTECO205WK9 (2) - AIRLINE...

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