The Airline Industry: Difference between revisions

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=Introduction=
=Introduction=
Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. The airline industry as a whole has made a cumulative loss during its 120-year history, once the costs include subsidies for aircraft development and airport construction.  Many large airlines today are privately owned and are therefore governed by microeconomic principles in order to maximize shareholder profit.
Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. The airline industry as a whole has made a cumulative loss during its 120-year history, the costs include subsidies for aircraft development and airport construction.  Because of increasing fuel prices and new industry standards the price of tickets has increased as a compensation of the high cost of operating.  Going hand-in-hand with increasing prices, new low-cost airlines and the effects of 9/11 are just adding to this struggle that the airline industry seems to be facing.
 
<p align="right">[[Image:Airbus.jpg|thumb|Description]]
<p align="right">[[Image:Airbus.jpg|thumb|Description]]



Revision as of 18:20, 9 November 2007

Introduction

Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. The airline industry as a whole has made a cumulative loss during its 120-year history, the costs include subsidies for aircraft development and airport construction. Because of increasing fuel prices and new industry standards the price of tickets has increased as a compensation of the high cost of operating. Going hand-in-hand with increasing prices, new low-cost airlines and the effects of 9/11 are just adding to this struggle that the airline industry seems to be facing.

Description

Airline Business Models

Ticket Sales

Effects of 9/11

Group Members

Ted Sirvaitis (Sirvaitr)

Michael Outwin (Outwinm)

Alex Baranick (Baranica)

Kaitlin Van Wagner (Vanwagnk)