Since
the advent of air transport, travelling has actually become very easy and
convenient. In the past, it used to take people days to reach neighboring
areas, let alone some far away country. But air transport has made it possible
for a person to reach faraway places in just a few hours. Other than the
advantage of saving, air transport also saves people from a lot of hassle and
trouble. However, the fact remains that airplanes are quite an expensive mode
of transport.
The
airplane is an invention that has changed the world completely. It has not only
changed lives but has also effected people’s perception of their surroundings. The
initial airplanes could only fly for a little time, but with wars came new advancements
in air transport. Over time, air travel has become such a common phenomenon
that it has actually become hard to imagine life without it. The airline
industry has also changed the global financial scenario by allowing people to
effectively conduct business in far off places. The airline industry can
basically be divided into four different categories. These include
international, national, regional and cargo airlines. The first three are
categorized on the basis of distance between routes but all these airlines
carry people. Cargo airlines, however, are for carrying goods and merchandise
from one place to another. Some significant issues for the airlines industry
are related to airport size and airplane capacity, route structures,
advancements in technology and costs. All these issues need to be sorted out
with care by the members of the global airlines industry. Some other problems
include weather conditions, fuel costs and labor. Weather conditions are very
important for a safe flight, and to date adverse weather conditions are the
biggest cause of aircraft accidents. Costs of fuel and other things are also
important as they affect the overall cost of the trip for the passenger. The
number of employees an airline has also affects the travel cost because the
airline company has to pay all those pilots, baggage handlers, airhostesses and
dispatchers. The airlines industry just needs to go with the flow and embrace
all those upcoming changes in demand and customer preferences. For more details
about recent developments in the airlines industry, please visit
Bidnessetc.com, the best website for financial news and views.
The
airlines industry companies such as American Airline stock exists
in an atmosphere that is highly competitive. Several changes have occurred. One
of these is that in the past, the airlines industry was at least partially
owned by the government. But now in most countries the major airlines are all
privately held. Overall revenue of the airlines industry is estimated to be
about 19.7 billion dollars in 2014, an increase of almost 50% as compared to
market value of 12.9% recorded in 2013. Profit margins for the airlines are not
that huge, almost 2.6% for the year 2014. The profit earned per passenger is a
tiny value, only six dollars. The airlines industry has several major player
and some smaller private companies. Things are expected to turn out in favor of
the airlines industry. For updates about airlines and flight schedules, please
visit Bidnessetc.com.
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