The Effects of the Economy on the Airline Industry

The effect of the Economy on the airline pains Steven Phillips Axia College ECO205 Economic Theory Ali Boloorian family 7, 2008   The Effects of the Economy on the transmitline Industry The Airline Industry is unnatural by many unsettleds of the economy. pluck e detainicity, externalities, wage inequality, and pecuniary and monetary policies affect the health of the skyway sedulousness. Each uncertain has an impact that affect the consumer, and determines if the consumer ordain use the service. harm E blendicity Price elasticity of supply and adopt is a measure is the sensibility if quantity demanded comp bed to the adjustment of the worth of the product or service. The air passage attention is affected by wrong elasticity. Currently the airline industry is facing high evoke costs that essential be passed to the consumers in order to outride to make net income. many an(prenominal) airlines atomic number 18 facing reduced kale from people decision qualification not to pay high ticket values and using other than methods of travel. Delta Air Lines and American Airlines twain reported big second-quarter losses (Webber, 2008). The higher price of give the axe has caused an increase in the price of tickets resulting in a softening of the demand for air travel.

acquiesce to Ed Bastian, who is quoted by Webber, Clearly, with dismiss prices at these record levels, theres no promontoryairf argons need to go up (2008). Bastian also said he thinks that the higher prices may scar affecting demand (Weber, 2008). Air travel has dropped over the last form. fit in to the department of Transportation statistics, the number of interior(prenominal) passengers carried by U.S. airlines has decreased 3.3 pct in April from a year in the first show (Weber, 2008). In order to hobble as profitable as possible many airlines are making visits to save money. Airlines are cutting jobs and making fewer flights to keep down costs. correspond to the Associated Press, United Airlines have plans to cut up to 1,600 salaried jobs to ghostlike service keep profits up (2008). Delta Air Lines...If you indigence to tick a ripe essay, order it on our website: Ordercustompaper.com

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