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 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 ***** 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 providers associated with it. Recreational flyers have reported spending much less time in ***** air, ***** 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 a highly contested one that could lead to further market instability.

Introduction

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

Alexandra Marks (2008) paints an even gloomier picture, ********** that the entire aviation system in the United states ***** face collapse by the beginning of 2009. *****, as indicated above, the consumer experience in flight has suffered so greatly that potential passengers are *****ten opting for ********** method of travel if they possibly can, in order to avoid the perceived inconvenience ***** high costs and o*****r cost-cutting methods by airlines. Concomitantly, the airline ***** has become a losing investment. According ***** the **********, the main effect of the rising oil and fuel costs have resulted in major *****s losing millions ***** dollars during each quarter. This trend will not continue for very long until every ***** airline faces bankruptcy, ***** to warnings by the chairman of American Airlines, Robert Cr*****all.

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

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