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 ***** ground and in the air.

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The rising costs of fuel today has become a global crisis for both industries and 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 ***** thousands of workers and de***** or eliminating long-distance flights. In addition, the 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 ***** this regard revolve around alternative lead-free fuel. This has however not ***** conclusively investigated. Not being a simple issue, it is a *****ly contested one that could lead to further market instability.

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The rising costs of ***** ***** ***** the main conversation point ***** motorists throughout the world. For perhaps the first time in world history, the food and fuel crises have 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 ***** in terms of *****. Both commercial and private ********** need a large amount ***** fuel in order to complete *****ir long- and short-distance *****. The rising ***** costs have resulted in a number of strategies to mitigate the extra investment required. Some commercial airlines have even reduced their long-distance flights in order to save fuel, while others ***** *****creased their ticket costs. The reality is that fuel ***** are likely ***** continue their upward trend as the world's oil resources ***** increasingly pressured.

Commercial Aviation

The American commercial airline industry is facing an ***** crisis in terms of ***** fuel 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 shares falling by 3.3% and ***** Amex Airline Index down ***** 1.5% (Peer, 2008).

***** Marks (2008) paints an even gloomier picture, noting that the entire aviation system in the United states could face collapse by the beginning ***** 2009. *****, as indicated above, the consumer experience in flight has suffered so greatly that potential passengers are often opting for ********** method of travel if they possibly can, in order ***** avoid the perceived inconvenience ***** 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 oil and 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, according ***** warnings ***** the chairman of American Airlines, Robert Cr*****all.

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

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