Essay on Hospitality Management
5 May 2011
SFT 1007-1011 Introduction to air transport
The impact of recession in air transport(passengers demand, economic cycles, current developments)
The reports covers the entire aviation industry and will include the recession aspect and its consequences on the passengers demand, the economic cycle and also on the current developments.
One of the biggest international industries, the air transport, has the largest sensitivity on the economic crisis. That crisis hit and still continues to effect the populations, industries and economic growth in developed and developing countries. Every sector has been effected by the crisis, every industry has had a reaction and an immediate …show more content…
The air transport sector is one of the main players, playing a key role in the global growth,.
This because stimulate employment, bring economic benefits for many sectors, guarantees trade expansion and is also essential for the social interaction and leisure travels. Its fundamental role, makes essential the analysis and the management to the sharp drop in demand. Which will bring less revenue and less outgoing from airlines companies.
3.0 The economic cycle
Starting from the assumption that in times of crisis and or of economic difficulty, people fly less often than they do in times of prosperity, both for business or leisure.
Is now possible to analyse the business cycle.
The 2007, was called by many, and especially from the same field of aviation as of the most prolific years in demand from passengers. And also in the terms of orders for new aircraft. (and this was pointed thanks to the market outlook of the major production companies such as the American Boeing and European Airbus).
However, in 2008 the industry prosperity has changed, due to an increasing fuel cost in the beginning of the year and the global economy downturn. By the end of 2008 the aviation industry and the global economy had worsened rapidly then had been anticipated with the forecast. In December 2008 the