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 the air.

Abstract

The rising costs of fuel today has become a global crisis for both industries ***** households. Being heavily dependent upon fuel for 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 de***** 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 ***** this regard revolve around alternative lead-free fuel. This has however not been conclusively investigated. Not being a simple issue, it is a highly contested one that could lead to further market instability.

Introduction

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

Commercial Aviation

***** American commercial 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, ***** stock ***** ***** for the ***** industry appears to substantiate such dark predictions: Northwest shares falling by 3.3% and ***** Amex Airline Index down by 1.5% (Peer, 2008).

***** 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 another method of travel if they possibly can, in order to avoid the perceived inconvenience of high costs and o*****r cost-cutting methods by *****s. Concomitantly, the airline ***** has become a losing investment. According ***** 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 major airline faces bankruptcy, ***** to warnings ***** the chairman of American Airlines, Robert Crandall.

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

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