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Informational Industry Report - Assignment Example

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It involves careful evaluation of specific goals and how to reach them. For students who have set specific goals to establish a career in Aviation Administration, this…
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Informational Industry Report

Download file to see previous pages... Today, globalization has created an aviation industry market where there are an increasing number of airlines, both in the international and domestic that form alliances and invest in each other to form global networks e.g. American Airlines. As the aviation market expands, the more job opportunities are created for individuals who are interested in pursuing employment in Aviation Administration.
Air transportation is a key industry that provides major contribution to economic, political, and social progress. The demand for its services, such as transport is driven by needs and desire to attain a specific objective. For instance, air transport can develop economic opportunities to a specific region such as tourism. Demand for airline transport is also motivated by the needs of goods and services offered by the region.
Outlook of the industry, the International Transport Association (IATA) asserts, has showed an improved profitability in its economic performance. Accordingly, the collective global net profits of airlines are expected to reach $25.0 billion in 2015. Drivers of Forecast are oil prices, jet fuel prices, economic growth, passenger trends and cargo trends.
Jet fuel prices. The benefit of lower fuel prices are not immediately felt because of the forward fuel buying practices of the industry; however costs savings will be realized as soon as time lag is settled. IATA estimated that 26% of industry costs are jet fuel prices. Given that improving fuel efficiency is a priority for airlines, IATA says fuel efficiency has improved by 1.8% in 2014 and more improvements are expected in 2015. Accordingly, fuel efficiency improvements could be done by reducing the 5% of wasted fuel due to air space and airport inefficiencies.
Passenger trends. A growth in passenger traffic of 7.0% is expected in 2015, a percentage that is above 5.5% growth of the past two decades. Total passenger numbers are expected to grow by 3.5 billion and expected airline ...Download file to see next pagesRead More
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