Motor Carrier Industry

Personal consumption expenditure also increased in 1998 compared to 1997. Because the aging population will decrease the labor force growth, this will reduce the economy’s potential to produce. This will increase the cost of labor for the airline industry. Households in the Northeast and West spent more than the Midwest and South in 1995. Because regional spending patterns are partly determined by climate, spending by region is not likely to change in the years ahead. 4. Political/Legal Environment With the deregulation of the airline industry came the advent of hypercompetition and also a decrease in wages for airline industry employees. Censuses show a 10% decline in the relative earning of airline workers after deregulation. Excess government intervention will be the only thing that will inhibit the rapid growth effects of deregulation both domestically and internationally. 5. Global Environment Growth in international travel will be determined on the successful application of Open Ski legislation and other agreements with foreign governments and carriers. On June 16, 1999, the United States and the United Kingdom were on the verge of a break through in their negotiations on an open-skies agreement between the two countries. This would create an open and competitive environment in one of the world’s largest international aviation market. The European Community has been working on its own version of Open Skies deregulation. European regulation is a national

As Motorking Corporation considers introducing its now “gas extender” product into the market, the management must consider various factors to determine if this is a good financial move. The production manager needs to determine if the product will generate a profit for the corporation, how much product is expected to sell to determine how much to produce and how much to outsource.

The rise of crude oil has also effected the sales of trucks. With comapnays no buying or spending as much on a truck has hurt the econonmy.

The economic effects section will cover some of the aspects that have shaped American Airlines (American) into the company they are today. American has dealt with capacity reduction, bankruptcy, cutbacks, economic recession, mergers and have managed to stay seeded as one of the top four airlines in the U.S. These four airlines maintain control of 80 percent of air travel across the United States. The airline industry is very volatile and depends heavily on the economy. Airlines are faced with a balancing of managing a large revenue stream, watching global fuel prices, and keeping an eye on the political movements around the world.

From the looks of it, it seems like the ones who gained from federal government deregulations are the people, deregulation has created lots of new jobs. In this article the author states what kind of jobs it created, “So there the airlines were, scrambling to add new routes, to add new flights, and to respond to the millions of extra Americans flying their services. What did this require the airlines to do? Yes - add more jobs” (“A History of US Airline Deregulation”). Think of all the people that were able to get a job, either as people who worked at the airport, taxi drivers, airplane workers, security people, and so on. Another benefit would be that safety/security increased both on airplanes and at the airport. As the author states, “Deregulation has encouraged the airlines to become more safety conscious rather than less.” (“A History of US Airline Deregulation”). One of the airlines main priorities would of course have to be safety, if deregulation caused for less carriers, less routes, more fees, you can expect for more

The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has there been a drop in prices and an increase in routes, there has also been a remarkable increase in airline service and safety. Airline deregulation should be seen as the crowning jewel of a federal de-regulatory emphasis. Prices are down: Airline

The transportation and logistic industry is greatly affected by political stability, government policies, and regulations in each country. The deregulation and trade agreement has eliminated boundaries between countries such as U.S and Mexico, and hence, encourage transportation and logistic companies to easily

Within the last decade, the industry has fallen on difficult times due to the effects of the September 11, 2001 terrorist attacks, and the extenuating weather circumstances in August 2005, which resulted in the back-to-back onslaught of Hurricanes Katrina and Rita. The effects of these hurricanes in addition to implausible losses of life and property, would soon include reduced fuel production in the gulf, and begin a period of rising fuel costs which affected both consumers and carriers, and now in 2008, as an OPEC

The years since regulation have been rocky for the airline industry. Airline after airline has declared bankruptcy and either ceased existence or emerged as a weaker airline. The surviving airlines have done so by merging and protecting their territory with tactics not even dreamed of in most industries. Robert Crandall said it best when he noted, "This is a nasty, rotten business (Petzinger,1995)." You would think that with the competition allowed by deregulation that a large number of new names would exist, but that does not seem to be the case. Most Americans still travel on American, Delta, United, US Airways, or Continental (Kane, 2003). The only true champion of deregulation is Southwest Airlines, whose success is paving the way for others such as JetBlue, but the obstacles are enormous. Initially, the airlines went after each other by slashing fares and driving competitors out of business. The industry quickly learned that although this tactic was effective, it was not profitable, and it was more economical to focus on controlling the air out of a few cities (hubs) than to attempt to directly compete in every single market. Since most of the major airlines already had key cities in which they controlled most of the takeoff and landing slots, airlines could charge higher fares and take in greater profits without any real head to head

Lingering effects of the 9/11 attacks continued over the next few years. Airlines struggled to match the decline in passenger traffic by cutting capacity and changing route destinations (Tyler). This spanned the development of low cost carriers and air fares decreased over the next few years. The rising dominance of low cost carriers in the domestic market place caused the major U.S. carriers to shift capacity from domestic to international markets. Passenger traffic finally reached its pre 9/11 levels in 2004, although, profitability did not return until 2006 (Tyler).

The health of the overall U.S airline industry is still tenuous in-spite of the passenger traffic volumes returning to pre-9/11 levels. A survey estimated that from 2001 through 2003, the US airline industry reported to have lost $23.2 billion dollars, compounded by an additional $1.6 billion in the first quarter of 2004. This $24.8 billion shortfall exceeds the total profits earned over the entire six-year period 1995-2000

Growing up with a father who has worked as a truck driver for almost all of his life, I have witnessed firsthand the role that the trucking industry plays in the economic vitality of Tennessee. When I was younger, I could not understand why my father would be gone for extended periods of time or why he had such an irregular schedule; however, I now see why my father did what he had to do. Without trucking industry workers, such as my father, our state could not operate. People rely on transportation laborers to supply the goods that they need and desire. Without this industry, the lives of all would be impacted greatly. There would be no one to deliver food, resulting in scarcity. There would be no way for essential supplies and materials to

*The airline industry operates like the veins of the United States by pumping precious cargo throughout the country. Most *people don’t realize how different the airlines were a few decades ago. The entire industry was regulated by the government. Regulation is usually considered a more socialistic liberal idea that is opposed by conservative capitalists. Although I personally believe in a government with a small limited *role* in our daily lives, I have come to the conclusion that the airline industry is a rare exception that needs to return to regulation which would benefit the airlines and the consumers in numerous ways.

General Motors is a multinational corporation engaged in operations, worldwide. GM strives to be the world leader in transportation products and associated services. Over the years, General Motors has suffered tremendous losses. In efforts to deal with those losses, GM impacted various stakeholder groups. This placed an emphasis upon the impact of foreign automakers within the industry, especially Toyota. The role of the UAW and what U.S. automakers need to do to regain competitiveness was also thoroughly explored. This report analyzes the underlying cause, stakeholder’s perspective, the difficulty of remaining a strong contender in a highly competitive industry, what GM did in response, and the significance of effective strategic planning.

According to Liu (2012), the U.S has the biggest economy in the world and its 17% proportion of the global GDP is testament to that. The U.S economy is comprised of various sectors and one of the most vital sectors is the aviation industry, which falls under the transportation and logistics sector and is a major source of growth for the U.S economy in terms of revenue, capacity building and human development. This highlights the importance of the domestic aviation industry, and any factors that affect this industry are bound to have effects on the entire economy.