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The Airline Industry

By Bernard

This is the Report Paper from OCdt Allan about the Airline Industry.  Here are his original front page and table of contents.

The Failing Airline Industry:
An Analysis of the Monetary Difficulties Currently Faced by the Airline Industry
Introduction to Economics Research Paper #6
Table of Contents

Minor Problems Affecting the Airline Industry    

Major Problems Affecting the Airline Industry    
Price of Oil/Jet Fuel        
Consumer Affect        



Annex 1 - Jet Fuel Consumption and Costs Data   

Annex 2 - U.S. Domestic Air Fares     

Annex 3 - Affects on Slowing Demand and High Oil   


Economics is the study of the production, consumption and distribution of goods and services.  It is also the study of how these goods and services affect the people and economies of the world.  This is evident in one of the world’s most used forms of transportation, the commercial airline industry.

However, the airline industry is in a time of economic difficulty.  Airlines are finding it difficult to maintain themselves because of the various problems that are now plaguing them.  This is evident in the increase of oil and the consequences of that increase, increased prices for consumers.  It is also evident in the aging of aircraft, the thousands of employees being laid off, and the decrease in government grants.  These problems are only continuing to take money from the airline industry, forcing companies to declare bankruptcy or merge with larger companies.  If the airline industry is not able to solve the problems facing it, then it will continue to lose money until the industry itself collapses under its own weight.  If the industry is unable to reduce costs or find other sources of energy to power aircraft, then consumers will be forced to cease doing business with airlines and to revert back to older methods of travel.


Associated with the three minor problems, as stated above, there are two major problems that are the greatest cause of distress for the airline industry.  These problems are the continued increase in prices of oil, and by association jet fuel, and the increased charges that customers of airlines are being forced to pay.  Both of these problems are having dramatic effects on the entire industry, and their continuation will only lead to further the current economic recession that is striking the world. 

The Airline Industry:

  1. Minor Problems Affecting Airline Industry<
  2. Price of Oil / Jet fuel<
  3. Consumer Affect<
  4. A Mediagraphy on the Airline Industry<
  5. A Conclusion on the Airline Industry<