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 the ground and in the air.

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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 such as laying ***** 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 ***** *****ly contested one that could lead to further market instability.

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The r*****ing costs of fuel has ***** the main conversation point ***** mo*****rists throughout the world. For perhaps the first time in ***** history, the food and fuel crises ***** become worldwide phenomena, ***** only an investment in ***** fuel sources appearing to be a valid long-term response. The aviation industry is no exception, *****d indeed appears to be one of the hardest hit industries in terms of *****. Both commercial and private airl*****es need a large amount ***** fuel in order to complete their long- ***** short-d*****tance *****. The rising fuel costs have resulted in a number of strategies to mitigate the extra *****vestment required. Some commercial airlines have even reduced their *****distance flights in order to save *****, while others ***** ********** 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 cr*****is in terms of the ***** prices. Many face bankruptcy by as soon as the end of 2008, according to ***** authors. Indeed, the stock ***** ***** for the ***** industry appears to substantiate such dark predictions: Northwest sh*****s falling ***** 3.3% and the Amex Airline Index down by 1.5% (Peer, 2008).

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

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

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