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 ***** ground and in the air.

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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 ***** has also suffered, along with the service provi*****rs 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.

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The ***** costs of fuel has become the main conversation point ***** mo*****rists throughout ***** world. For perhaps the first time in world history, the food and fuel crises ***** become worldwide phenomena, with only an investment in alternative ***** 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 ***** in terms of fuel. Both commercial and private *****lines need a large amount ***** fuel in order to complete their long- and short-d*****tance flights. The rising ***** costs have resulted in a number of strategies to mitigate the extra *****vestment required. Some commercial airlines ***** even reduced their long-distance flights in order to save fuel, while others have increased their ticket costs. ***** reality is that fuel ***** are likely to continue their upward trend as the world's oil resources ***** increasingly pressured.

Commercial Aviation

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

***** Marks (2008) paints an even gloomier picture, ********** that the entire aviation system in ***** United states could face collapse by the beginning ***** 2009. *****, as indicated above, the consumer experience in flight ***** suffered so greatly that potential passengers are often opting for *****o*****r method of travel if they possibly can, in *****der ***** avoid the perceived inconvenience of high costs and o*****r cost-cutting methods by *****s. Concomitantly, the airline ***** 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 ***** dollars during each quarter. This trend will not continue for very long until every major airline faces bankruptcy, according ***** warnings ***** the chairman of ***** Airlines, Robert Crandall.

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

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