Essay - The Impact of High Fuel Costs on the Aviation Industry...


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The impact of high fuel costs on the aviation industry

Rising Fuel Prices: a glob*****l problem on the ground and in ***** air.

Abstract

The rising costs of fuel today has become a global crisis for both industries ***** households. Being heavily dependent upon fuel for its continuing operations, airlines have been heavily burdened by such fuel prices. Indeed, some have gone to extreme measures ***** as laying ***** thousands of workers and de***** or eliminating long-distance flights. In addition, the general aviation industry has also suffered, along with the service provi*****rs associated with it. Recreational flyers have reported spending much less time in the air, for example. Solutions suggested ***** this regard revolve around alternative lead-free fuel. This has however not ***** conclusively investigated. Not being a simple issue, it is a *****ly contested one that could lead to further market instability.

Introduction

The ***** costs of fuel has ***** the main conversation point of motor*****ts throughout ***** world. For perhaps the first time in world history, the food and fuel crises ***** become worldwide phenomena, ***** only an *****vestment in alternative fuel sources appear*****g to be a valid long-term response. The aviation ***** is no exception, *****d indeed appears to be ***** ***** the hardest hit industries in terms of fuel. Both commercial and private airlines need a l*****rge amount of fuel in order ***** complete *****ir long- ***** short-d*****tance flights. The rising fuel costs have resulted in a number of strategies to mitigate the extra investment required. Some commercial ***** have even reduced their ********** flights in order to save *****, while others have increased their ticket costs. ***** reality is that fuel prices are likely ***** continue their upward trend as the world's oil resources are increasingly pressured.

Commercial Aviation

The American commercial airline industry ***** facing an ***** crisis in terms of ***** fuel prices. M*****y face bankruptcy by as soon as the end of 2008, according to some authors. Indeed, the stock ***** trend for the ***** industry appears to substantiate such dark predictions: Northwest shares falling ***** 3.3% and ***** Amex Airline Index down by 1.5% (Peer, 2008).

Alex*****ra Marks (2008) paints an even gloomier picture, noting that the entire aviation system in the United states could ***** collapse by the beginning of 2009. *****, as indicated above, the consumer experience in flight has suffered so greatly that potential passengers are *****ten opting for *****other method of travel if they possibly can, in order to avoid the perceived *****convenience of high costs and o*****r cost-cutting methods by *****s. Concomitantly, the airline industry has become a losing investment. According ***** the author, the main effect of the rising ***** ***** fuel costs have resulted in major airlines losing millions ***** dollars during each quarter. This ***** will not continue for very long until every major airline faces bankruptcy, ***** to warnings ***** the chairman of ***** Airlines, Robert Crandall.

***** indeed, the ***** is very real. It ***** expect that, ***** ***** oil prices

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