(2013, 2 27). Boeing, 787 Battery Supplier at Odds Over Fixes. Cohan, P. (2013, 2 6). 'Thermal Runaway' in 787 Dreamliner Batteries Must Be Stopped. Retrieved 2 27, 2014, from http://www.forbes.com/sites/petercohan/2013/02/06/thermal-runaway-in-787-dreamliner-batteries-must-be-stopped/
Although some parts of this law encourage safety, it has the potential to cripple the aviation industry. This is so because of the predicted shortage of pilots in the coming years, lost interest of young pilots, potential higher prices for consumers, and loss of jobs. The view that there is a pilot shortage impending has been echoed by many including Louis Smith, president of FLTOps, a website geared towards finding pilots jobs and providing assistance in résumé building. He states, “Pilot hiring was severely depressed in the last three years. The next ten years will be the exact opposite, with the longest and largest pilot hiring boom in the history of the industry" (Jones).
Aviation transportation and its services for business and leisure travel are relied upon worldwide and prior to the attacks on September 11, 2011, U.S. airlines were experiencing the effects of a weak economy. The effects of September 11th, 2001 on the United States have caused great harm and concern towards the economy and an already diminishing aviation industry. Airlines were: going bankrupt; air fare and fuel costs were on the rise; and layoffs further complicated the conditions of the aviation industry. Strengthening the vulnerabilities in aviation security has received a great deal of consideration by Congress (Dillingham, 2003). On November 19, 2001, Congress enacted the Aviation and Transportation Security Act (ATSA) which created the Transportation Security Act (TSA) within the Department of Transportation (DOT).
The airline industry is perceived as being unpredictable because it is relies on the current market, and the market is always changing. Incidents such as inflation, oil prices and terrorist attacks seriously influenced the demand for airline tickets throughout the years. Competition from other airlines consistently affects the price of airline tickets because it allows the customer other companies to choose from. Alternatives are to travel by train, car, or avoiding travel whenever possible, and consumers have resorted to all of these substitutes during unstable times in our economy. The elasticity of demand is very much affected by the customer's purpose for travel.
Southwest Airlines business opened for operations in 1971, after Rollin King and Herb Kelleher raised enough capital to finance their plan. Their service model broke off from the typical large airline policies and procedures. The typical model had an airline that was “home based” from a hub and ran routes to and from that location. This model added cost that Southwest wanted to avoid, causing them to implement point-to-point flights. The leadership team also made decisions to eliminate the inflight meal options to reduce overhead costs.
(2011, March 17). Competitive factors in the Aircraft Manufacturing Industry (Airbus: Challenger to Market Leader). Retrieved , from http://assignmenthelpseries14.blogspot.com/ 4. How Your Competition Affects Your Strategic Plan. (2011, November 5).
This is because the price of gasoline is determined through a complex mechanism of international trade practices and is subject to the shocks of international events (Wensween). For example, the Gulf War literally took Iraq off the gasoline grid and caused an increase in the prices of airline fuel. Airlines are the weather wanes of the global economy. If the economy i... ... middle of paper ... ...sales and marketing strategies to make the airline profitable. Day to day running of the airline will involve a tight control over scheduling of the workforce, monitoring the timeliness of the aircraft, the interface with the catering industry to ensure meals are delivered on time, budgeting of the airline, and cost control.
“Right now, the level of concern is very high.” As of 2012, the decision of... ... middle of paper ... ...eved April 11, 2014, from CBS local site: http://dfw.cbslocal.com/2012/02/03/american-airlines-plans-to-outsource-some-jobs/ Genevieve Brown, (October 2, 2012). American Airlines: Timeline of Troubles [online]. Retrieved April 11, 2014, from ABC news site: http://abcnews.go.com/blogs/lifestyle/2012/10/american-airlines-timeline-of-troubles/ “AMR Corporation Reports 2Q 2011 Net Loss of $286 Million, Announces Landmark Aircraft Agreement and Eagle Divestiture Plan”. (N/A). Retrieved April 11, 2014, from http://www.aa.com/i18n/amrcorp/newsroom/fp_2q2011_financials.jsp?v_locale=en_US&v_mobileUAFlag=AA “American Airlines' reorganization costs drive 3Q2012 loss but revenue momentum increases”.
Conversely, the airline has faced increasing international market share pressure, with increased competition, particularly on North Atlantic routes on which it has traditionally held a monopoly. A sustained spike in fuel and consequent overhead prices, the reduced competitiveness of an ageing fleet, along with increased labour costs through a heavily unionised workforce, have all combined to deliver a severe blow to the airlines overall profitability. In recent years, the power of the unionised workforce to hold the airline to ransom was evidenced by the ultimate grounding of the fleet in 2011 by Chief Executive Officer, Alan Joyce, as he locked out the disputing workforce and subjected p... ... middle of paper ... ...national/august-2012/Pages/ceo-interview-qantas.aspx O'Sullivan, M. (2012, June 25). Ditching sale act won't end turbulence for vexed Qantas. Sydney Morning Herald.