Factors that affect ted aviation industry!

Factors that affect ted aviation industry!

Aviation industry has certainly gone through various ups and downs. There are several factors that had a great impact on aviation industry. Some of them are mentioned below:

The Oil Crisis

Just when we grudgingly conceded reserved seats and in-flight meals to enjoy competitive fares, oil prices struck a devastating blow to the airline industry. Oil prices doubled, demanding further indignities must be borne. Fuel is one of the main overhead costs. With oil priced at $ 150 per barrel, the average cost to transport a passenger soars to hundreds of dollars. There are two ways to absorb rising fuel costs and neither is palatable. The most obvious solution is to use less fuel. There are several ways to conserve fuel.

An airline can adjust flight paths and air speed and reduce gas- hogging weight by removing entertainment systems. Fuel cost offsets also include discontinuing unprofitable routes forcing passengers in remote areas to drive to larger airports. Employees have been furloughed. The cost of tickets rose in some markets as well as the cost of miscellaneous fees and fuel surcharges added to ticket prices. You may wonder, as do many customers, why the cost of standing by for an earlier flight or carrying a pet is affected by the cost of oil when neither changes the weight of the aircraft nor the route nor the air speed. The fact is fuel price has no direct bearing on such fees. Airlines need more money to pay for fuel and they must find ways to meet that expense.

The Hub Concept

Imagine a wagon wheel attached to the axle of a picturesque Conestoga wagon, a popular, low cost form of transcontinental travel before the train or airplane. Notice the centre hub from which radiate spokes in every direction to an outer rim. The hub is the centre from which all movement occurs. Likewise, airport hubs radiate movement in the form of routes.

There is hundreds of airports in the United States alone, plus hundreds more throughout the world. The idea of travelling from any single airport to every other airport is ludicrous, particularly if you are beginning or ending your trip in a small regional airport.

From most regional airports, airlines fly to hubs only, with perhaps a daily flight to a popular destination if there is sufficient demand to ensure a profit. Many people who seldom fly expect they will be able to fly nonstop from their regional airport to another regional airport. It is the first of many bubbles that will be burst.

Most airlines have more than one hub, at least one major hub and other mini-hubs, international hubs, or 'focus cities'--service to surrounding regions. Geographic location, demographics, and room for expansion figure in hub selection, as well as politics and the presence of other airlines. Hub location is a prime factor in acquisitions because, as in all matters of real estate, it is all about location.

Though there are many other factors that impacted airlines greatly. To learn more about the ticket price as in where they are costly and when they are not then you need to call.