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 global problem on the ground and in ***** air.

Abstract

The rising ***** 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 ***** 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.

Introduction

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

Commercial Aviation

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

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

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

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