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 ***** burdened by such fuel prices. Indeed, some have gone to extreme measures ***** as laying ***** thousands of workers and delaying or eliminating long-distance flights. In addition, ***** general aviation industry has also suffered, along with the service providers 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 been conclusively investigated. Not being a simple issue, it is ***** highly contested one that could lead to further market instability.

Introduction

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

Commercial Aviation

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

Alex*****ra Marks (2008) paints an even gloomier picture, ********** that the entire aviation system in ***** United states could face collapse by the beginning ***** 2009. Indeed, as indicated above, ***** 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 inconvenience of high costs and o*****r cost-cutting methods by *****s. Concomitantly, the airline industry has become a losing investment. According to the author, the main effect of the rising oil ***** fuel costs have resulted in major *****s losing millions of dollars during each quarter. This trend will not continue for very long until every ***** airline faces bankruptcy, according ***** warnings by the chairman of American Airlines, Robert Crandall.

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

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