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 ***** ground and in the air.

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The rising costs of fuel today has become a global crisis for both industries ***** households. Being heavily dependent upon fuel ***** its continuing operations, airlines have been ***** burdened by such fuel prices. Indeed, some have gone to extreme measures such as laying of 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 been conclusively investigated. Not being a simple issue, it is ***** highly contested one that could lead to further market instability.

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The ***** costs of ***** ***** ***** the main conversation point of motor*****ts throughout the world. For perhaps the first time in ***** history, the food and fuel crises ***** become worldwide phenomena, with only an *****vestment in alternative fuel sources appearing to be a valid long-term response. The aviation industry is no exception, and indeed appears to ***** one ***** the hardest hit industries in terms of *****. Both commercial and private airlines need a l*****rge amount of fuel in order to complete their long- and short-d*****tance *****. The rising ***** costs have resulted in a number of strategies to mitigate the extra *****vestment required. Some commercial airlines have even reduced their long-distance flights in order to save fuel, while others ***** increased their ticket costs. The reality is that fuel ***** are likely to 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 the fuel prices. Many face bankruptcy by as soon as ***** end of 2008, according to some authors. Indeed, the stock ***** trend for the aviation industry appears to substantiate such dark predictions: Northwest shares falling by 3.3% and the Amex Airline Index down by 1.5% (Peer, 2008).

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

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

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