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.

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The rising ***** 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 of thousands of workers and delaying or eliminating long-distance flights. In addition, the general aviation ***** has also suffered, along with the service providers 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 ***** ********** contested one that could lead to further market instability.

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

Commercial Aviation

The American ***** airline industry is facing an extreme crisis in terms of ***** fuel prices. Many face bankruptcy by as soon as the end of 2008, according to ***** authors. Indeed, the stock market ***** for the aviation industry appears to substantiate such dark predictions: Northwest sh*****s falling ***** 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 the United states ***** face collapse ***** the beg*****ning of 2009. *****, as indicated above, the 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 *****convenience ***** high costs and other cost-cutting methods by *****s. Concomitantly, the airline ***** has become a losing investment. According to the author, the main effect of the rising ***** ***** fuel costs have resulted in major airlines losing millions of dollars during each quarter. This trend will not continue for very long until every ***** airline faces bankruptcy, ***** ***** warnings by the chairman of ***** Airlines, Robert Crandall.

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

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