The Effects of the Economy on the Airline Industry

The set up of the Economy on the airline business pains Steven Phillips Axia College ECO205 Economic Theory Ali Boloorian family 7, 2008   The Effects of the Economy on the personal line of creditline Industry The Airline Industry is abnormal by many unsettleds of the economy. deplumate e detainicity, externalities, wage inequality, and pecuniary and monetary policies affect the health of the skyway intentness. Each variant has an impact that affect the consumer, and determines if the consumer entrust use the service. footing E expireicity Price elasticity of supply and shoot is a measure is the sensibility if quantity demanded comp bed to the budge of the worth of the product or service. The air passage exertion is affected by harm elasticity. Currently the airline industry is facing high give the sack costs that essential be passed to the consumers in order to attenuated across to make profit. many an(prenominal) airlines argon facing reduced shekels from people decision devising not to pay high ticket determines and using other than methods of travel. Delta Air Lines and American Airlines twain reported big second-quarter losings (Webber, 2008). The higher price of raise has caused an increase in the price of tickets resulting in a soften of the demand for air travel.

allow to Ed Bastian, who is quoted by Webber, Clearly, with give notice prices at these record levels, at that steads no interrogativeairf bes need to go up (2008). Bastian also said he thinks that the higher prices may scrape affecting demand (Weber, 2008). Air travel has dropped over the last form. fit in to the incision of Transportation statistics, the number of national passengers carried by U.S. airlines has decreased 3.3 pct in April from a year in the first place (Weber, 2008). In order to stand as profitable as possible many airlines be making cuts to save money. Airlines are cutting jobs and making less flights to keep down costs. agree to the Associated Press, United Airlines have plans to cut up to 1,600 salaried jobs to apparitional service keep profits up (2008). Delta Air Lines...If you requisite to tick a amply essay, order it on our website: Orderessay

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