Airline Industry Problems and Suggested Solutions Essay

Airline Industry Problems and Suggested Solutions The airline industry has over the past few months gradually been going into recession. This has been due to a number of factors, all affecting the industry in a negative manner at the same time. This has resulted in low profits and poor performance. The decline in the industry sharply increased after the terrorist attacks on the United States, increasing the urgency to clearly identify the causes of the problems faced and to find any solutions available to overcome them. One of the factors contributing to the poor performance has been the global economic slowdown whose effect has not been limited to the airline industry but has extended to many other industries. The effect of this†¦show more content†¦But after the demand for military pilots declined, there were cutbacks. Pilot training is now no longer subsidized, forcing pilots to pay for their training. This has a high cost of approximately $70 000. Action must be taken to solve these problems to prevent more damage to the airline industry. The first step that companies should take is to try and deal with the losses they are making by reducing their costs as much as possible. There are various methods of doing achieving this. Job cuts could be made. This would reduce the cost of wages paid by the companies. However this may be met with opposition from employees. They may take industrial action to help and show support for their fellow employees that have been made redundant. Morale may also come down, as employees no longer feel that their jobs are secure. Companies could try to cutback on the number of planes used. This would reduce the cost of fuel and maintenance. The companies could also raise money through the sale of these unused plane and other assets. But this would mean that some routes would have to be cancelled so the airline would risk losing customers who use that particular route to competitors. Another option available would be for companies to adopt a policy of no hiring. This is when no new employees are hired. This would not reduce any costs but would prevent the addition of any further costs. The second stepShow MoreRelatedThe Issue Of Overweight Aircraft992 Words   |  4 PagesSummary Airlines have become concerned with the issue of overweight aircraft. The average weight of passengers has increased by 3 kg for females and 5 kg for males, meaning aircraft could exceed their floor loading limit. Certain aspects must be considered before a solution is chosen. It must comply with all laws and pose no risk to passengers. Discrimination must not occur and the reputation of the airline must not be risked. The solution must be easily implemented on existing aircraft with a reasonableRead MoreService Failures Of The Airline Industry Essay1181 Words   |  5 PagesLooking at things from the customer’s perspective, we can define â€Å"service failure† as a real or perceived service- related problem or issue. This situation often occurs when something has gone wrong in dealing with an organization, on a macro level it can be anything that relates to customer’s expectations of a given service encounter are not met by the service organization, and the cus tomer could even perceive a loss as a result of the failure. Although customers and organizations increasingly seekRead MoreAviation Provides The Sole Worldwide Transportation Network That Makes It Essential For International Business And Tourism1227 Words   |  5 Pagesnotably in developing countries. Flying transports close to two billion travelers per annum and four-hundredth of interregional fares of merchandise (by worth), four-hundredth of international tourists currently travel by air. The air transportation industry generates a total of twenty nine million jobs globally (through direct, indirect, induced and catalytic impacts). Aviation’s international economic impact (direct, indirect, induced and catalytic) is calculable at US$ 2,960 billion, comparable toRead MoreUk Air Fares Are Below The Price For Travel All Over The World1701 Words   |  7 Pagesairfares were not taken into account. We have therefore suggested solutions in order to improve the model. We con clude that the suggestion by the article: ‘most passengers flying from Britain pay significantly less than the global average’ , is not justified, nor that Rome2Rio’s findings can be relied upon without further analysis. Section 1 - Introduction The fight for customers in the airline industry is becoming fiercer, forcing numerous airlines to offer exclusive services, provide different levelsRead MoreVietjet Aviation Joint Stock Company, Known As Vietjet1603 Words   |  7 PagesCompany, known as Vietjet Air, belongs to a biggest private and LCC low-cost carrier in Vietnam. Over the years its operation it has quickly won passengers’ hearts to become the most favourite airline in Vietnam and in the region (Routesonline, 2017). Vietjet was also voted as â€Å"Vietnam’s Most Favourite Airline† by The Vietnam’s Economic Times and the â€Å"Best Asian Low Cost Carrier† at the TTG Travel Awards 2015, and for 5 years of taking off and serving the customers, Vietjet has been honoured with 32Read MoreKnowing Why Airplanes Crash Is Important Essay1221 Words   |  5 Pagescrashes and 110 successful deployments. In addition to crash data the device incorporates an ELT which broadcasts the aircraft serial number (Werfelman, Thinking outside the black box). Streaming data is another technology that has been popularly suggested for use in Locating and accessing FDR information. After all if we can stream movies in high definition why can’t we do the same with the FDR data? In light of the AF447 tragedy there has been a tremendous amount of research into aircraft streamingRead MoreMiles and Snow Typology1469 Words   |  6 Pagesfundamental problems: entrepreneurial, engineering (or operational), and administrative problems. The entrepreneurial problem is how a company should manage its market share. The engineering problem involves how a company should implement its solution to the entrepreneurial problem. The administrative problem considers how a company should structure itself to manage the implementation of the solutions to the first two problems. Although businesses choose different solutions to these problems, Miles andRead MoreAir Asia Structure1698 Words   |  7 PagesIntroduction AirAsia is the airline industry started based on the low cost carrier (LCC) concept in Malaysia. The low cost concept is introduced in the year of 2001 with the belief that â€Å"Now Everyone Can Fly† by Tony Fernandes. AirAsia was first established in 1993 and began its operation on 18 November 1996. In the year 2001, Anthony Fernandes (or known as Tony Fernandes) bought the airline which is suffering a loss. It was re-established as the low cost carrier after the bought over. AirAsia’sRead MoreReview on Airline Reservation Systems1606 Words   |  7 PagesOriginally designed and operated by airlines, CRSes were later extended for the use of travel agencies. Major CRS operations that book and sell tickets for multiple airlines are known as global distribution systems (GDS). Airlines have divested most of their direct holdings to dedicated GDS companies, who make their systems accessible to consumers through Internet gateways. Modern GDSes typically allow users to book hotel rooms and rental cars as well as airline tickets. They also provide access toRead MoreHilton Case Study1444 Words   |  6 PagesProblem Identification The problem identified is that Hilton HHonors need to decide how to approach a different positioning stand and focus on differentiating its loyalty program from the recently announced Starwood Preferred Guest and other competitors rather than to match their program with Preferred Guest. It is recognized that other competitors such as Hyatt and Marriot who are part of the big players in the hotel industry have not respond to Starwood’s announcement. Thus, Hilton will need to