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 and households. Being heavily dependent upon fuel ***** 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 ***** has also suffered, along with the service provi*****rs associated with it. Recreational flyers have reported spending much less time in ***** air, for example. Solutions suggested in this regard revolve around alternative lead-free fuel. This has however not ***** conclusively investigated. Not being a simple issue, it is ***** highly contested one that could lead to further market instability.

Introduction

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

Commercial Aviation

The American ***** airline industry is facing an extreme cr*****is in terms of the fuel prices. Many face bankruptcy by as soon as the end of 2008, according to ***** authors. Indeed, the stock market 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).

Alexandra Marks (2008) paints an even gloomier picture, ********** that the entire aviation system in ***** United states ***** ***** collapse ***** the beginning of 2009. Indeed, as indicated above, ***** consumer experience in flight has suffered so greatly that potential passengers are *****ten opting for another method of travel if they possibly can, in order to avoid the perceived ********** ***** 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 ***** and 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, according to warnings ***** the chairman of ***** Airlines, Robert Cr*****all.

And indeed, the crisis is very real. It is expect that, ***** high oil *****

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