We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Economic Profile of the US Airline Industry - Research Paper Example

Comments (0) Cite this document
Summary
This paper talks about the current state of the airline industry in the US. The essay specifies the economic problems the industry is facing and offers the solution for these problems, in order for the industry to follow the path of sustainable development…
Download full paper
GRAB THE BEST PAPER
Economic Profile of the US Airline Industry
Read TextPreview

Extract of sample
Economic Profile of the US Airline Industry

Download file to see previous pages... This had negative impacts on the industry. The elasticity of demand is affected by the reason the passenger travels. Three reasons that can be accounted for travelling by airplanes are business necessity, time saving and pleasure. The financial crisis forced many travelers to opt for other modes of transport leading to loss of revenue for the industry as a whole. While calculating the price of tickets the airline companies use a formula that takes care of the yield as well as inventory cost. Sometimes customers look to book tickets that are close to the departure dates. There is certain amount of risks to the airline industry as if the seats are not filled the flight will have to travel with vacant seats which again brings revenue loss to the consumers. In order to mitigate such kind of risks the airlines have to increase the price of tickets. The high volatility of the prices of crude oil leaves the airline operators at greater risk of cost fluctuations. Therefore the demand conditions are highly affected by the fluctuations in the crude oil prices. The travel by airplanes is considered as luxury and luxury tax is added with the price of tickets. The demand conditions can be affected by the existence of such taxes too. The price elasticity of supply for the airline industry is elastic. The availability of seats in the airplanes responds substantially to the changes in prices which prove the elasticity of the airline industry. Elastic supply can also be witnessed in the price wars that are initiated by the competitors. The drastic changes in the prices of tickets bring about large or small changes in the availability of seats on airplanes. Monetary and/or fiscal policies that have affected the airline industry The...
This research paper offers comprehensive analysis of the current trends on the American market, where the airline companies operate. Also, effectiveness of the economic policies of the US government toward the industry is evaluated.
The airline industry is a cyclical one. The industry witnesses bankruptcy as well as M&A activities every decade. The estimates of the International Air Transport Association and that of Federal Aviation Administration expect a rise in cargo traffic and passengers along with decline in profits for the airline companies.
The airline industry is dependent on the conditions of the market.. The demand for the industry was greatly influenced by the global financial crisis and the fluctuations in the oil prices. It is a competitive industry as many players have emerged into the market. The other modes of transport provide competition to the industry.
The monetary and the fiscal policies can influence the aggregate demand. Monetary policies can influence the shift in the aggregate demand for goods as well as services by increasing the supply of money. The economy can also contribute in the industry through lack of competition or through increased competition.
The same factors that determines economic performance also affects the growth of the international airline industry. The factors includes growth in international trade, the rise of GDP and the growth of the industries that use air services. Sustained economic growth of international trade has strong positive impact on international traffic. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic Profile of the US Airline Industry Research Paper”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1464146-economic-profile-of-the-us-airline-industry
(Economic Profile of the US Airline Industry Research Paper)
https://studentshare.org/macro-microeconomics/1464146-economic-profile-of-the-us-airline-industry.
“Economic Profile of the US Airline Industry Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1464146-economic-profile-of-the-us-airline-industry.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economic impact of downturn in housing/mortgage industry in the US 2008-2010
Major banks became bankrupt and various governments undertook to rescue their economies through economic stimulus packages. Mortgage-back securities became toxic and general stock market declined in value.
10 Pages(2500 words)Research Paper
Merger For Success In The US Airline Industry
The incentive to mergers and acquisitions is connected with the Law on the Regulation of Aviation Charges of 1978. It was believed that competition was strengthened by excluding the Federal Council of Civil Aviation and its regulatory framework. The 1978 law on the deregulation of the airline is based on three specific areas: competition, new entrants and tariffs.
11 Pages(2750 words)Research Paper
Deregulation of Aviation in the Commercial Airline Industry
Historically, airline services were partially regulated, because of oligopoly and monopoly concerns, as only a few airlines provided flights that were direct between cities. The aim of the United States airline deregulation was to control entries and reduce prices in the transport system in the United States.
9 Pages(2250 words)Research Paper
US Economic Research Paper
US Economic Research Paper Proper functioning of the economy of a country is vital for the achieving of the long-term goals and objectives of its population. In the economy, the major drivers are the demand and supply of goods and services, either within the country or outside its national boundaries.
8 Pages(2000 words)Research Paper
Strategic Management in Singapore Airlines
Strategic Management in Singapore Airlines. The aim of this research report is to analyze briefly Singapore Airlines strategic management profile. To report the name of the minds whose policies have led to the continuous success of this airline in today’s competitive environment.
5 Pages(1250 words)Research Paper
Commercial Passenger Airline Service Industry
Similarly, the airline industry provides freight services and cargo ferrying from one destination to another at a fee. Large airline companies have large aircrafts that transport large cargo and many passengers. On the other hand, some companies provide the transport services through small aircrafts that carry just a few people.
6 Pages(1500 words)Research Paper
Integrating Values - The Legality, Morality, and Social Responsibility of US Airways and Delta Airlines Merger
Introduction For the last one decade, the U.S. Airline industry has experienced a number of high-profile merges, the recent one being the US Airways- American Airline merger. According to the available literature the three motives of mergers are: monopoly motive, speculative motive and normal business motive.
15 Pages(3750 words)Research Paper
Economic Profile for the Airline Industry
2) that influence the structure of the market and impact mobility. This paper aims to create a general economic profile for the airline industry by discussing various aspects of the airline market, such as industry trends, market demand and supply and associated elasticity, the products the industry produces and associated externalities, employment relationships, and more.
8 Pages(2000 words)Essay
Oil on the Airline Industry
Thus, we can see that the airlines industry is very closely impacted by the changes in the fuel prices. The major issues that impact the industry on account of fuel prices
4 Pages(1000 words)Research Paper
Innovation and Creativity and Enterprise
he airline industry was hard hit and this discouraged investors but despite this occurrence, the airline has embraced lateral strategies that have enabled it to document profits regardless of the industry’s current economic state. The methodologies adopted by the carrier in
11 Pages(2750 words)Research Paper
Let us find you another Research Paper on topic Economic Profile of the US Airline Industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us