How Does The Government Affect The Airline Industry

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were

Although the airline industry is in the business to transport people from one place to another they could not function without those who keep the airplanes operating on schedule. The airline industry has become the major provider of public transportation for Americans traveling between the nation's cities. Scheduled airlines now account for 92%

Since the airline industry is a direct product of market conditions, it is greatly affected by all externalities. Many people noticed a decline in travel after the September 11th tragedy occurred due to safety concerns. When there is a huge increase in fares that definitely interferes with the demand for travel; it causes the price of tickets to continue to rise since a clear correlation between supply and demand exists. When the economy is doing well in terms of the employment rate, and when the dollar is strong people have the tendency to travel more (Jerram,1998).

Thinking about airlines, the first thought which probably comes to mind would be luxury and comfort. However, there is much more to the airline industry than just that. Yes, most of the airlines worldwide are facing a cycle of rising operating costs and declining profits and margins. Now, passengers may not be able to observe these characteristics, but after extensive research it is quite apparent the global airline industry is in disarray.

The modern day airline industry is a highly complex and dynamic industry, characterized by numerous elements. For instance, the airline industry is now, unlike its inception period, populated by privately owned companies, rather than state owned enterprises. Then, the airline sector is marked by high levels of financial resource consumption, employment concerns or pollution complaints.

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

Air travel is one of the largest growing industries in the world. Activities such as world trade, economic growth, international investment, tourism and cargo services are central to the globalisation that is taking place in other industries. Air travel for business and leisure purpose has been experiencing a significant growth worldwide.

The Airlines Market within the United States of America is very important in the role it plays. This industry thrives on what happens upon the profits, failures, successes and all around survival of certain markets. We find that to often within a market there are many gains and profits because of new industries leaving and new industries entering. An Airline market can consist of many different types of businesses plans. The theory behind how American airlines compete among other airlines is with price elasticity. We find that we stay a float by the prices that are offered for certain flights etc. The airlines use the competitive edge by allowing the company to survive. Government can have an adverse effect on what it can do to force

has a high sensitivity to the economic cycle (Doganis, 2006). The profit margins of the airline

Increased interest rates & credit crunch in US are affecting people to spend on luxuries like long distance air travel. The economic environment of the airline sector has been characterized by growth in relation to most key figures. Air travel demand has closely mirrored the cyclical pattern shown by gross domestic product (GDP) figures in that it responds to cyclical upswings and downswings. However, air travel growth has far exceeded GDP growth over the period. Between 1960 and 1995 the total world economy, measured by GDP, grew by a factor of just over three, while air transport, measured by tonne-kilometres, grew by a factor of nearly 20 (Hanlon, 1999).Furthermore, fuel and aircraft prices are major expenditure items subject to fluctuations and the international orientation of the industry means that movements in foreign exchange rates can have major effects upon industry profitability. Holloway (1998) maintained that aviation managers face the need to pursue strategies capable of sustaining profitability throughout entire economic cycles.

The airline industry market has had its ups and downs, currently the airline industry is in the positives of making profit. The battle of keeping up with the positive profit margin, especially in the current economy will be a

Many have us have flown in our lifetime, in fact, according to the report from the Bureau of Transportation (2014); there were 824,832,951 passengers and 9,706,403 domestic and international flights in 2013. Regardless of your fears or thoughts about flying, the reality is that most of us will have to fly at some point in our lives. Airline companies understand how stressful planning a trip can be; therefore, their goal is to make it as simple and customer-friendly and convenient as possible. Although perhaps perceived as a profitable business, airline companies have gone through major struggles in the recent years. From rising fuel prices, to the catastrophic events of 9-11, the way airline companies operate has evolved and those that continue to stay in business have had to endure changing customer needs, challenging financials, and steep competition.

A steady and growing economy helps most industires grow. Changes in prices are anindication of the current economic environement. Government regulations monitored by the FAA and interference influence an industry by regulating prices and safety rules and guidelines that all airline companies must follow. Air travel is more in demand than ever. Because of the number of carriers and their low prices, more people are able to fly and choose from a variety of places. Things such as terrorist threats and disease epidemics are definitely a factor when trying to decide where they want to go. Technology of course is a huge part of any industry the airlines in particular. Advances technology is a cost saving mechanism for many airlines. Most older airplines are being replace with newer planes with better technology to save on fuel and provide a safer and more confortable ride for passengers. The safety of the crew an passengers and American Airlines realizes the need to invest in better customer service in the air and on the ground