re – high demand and low supply leading to projections of increased fuel prices in the future, dependence on OPEC countries for fuel leading to change in political equations in the future, need for the airlines industry to look for better utilization of its resources to counter increasing oil prices and also invest in alternative green fuel.
Fuel costs have become largest single cost component of the global airline industry reaching at 29% of the total operating costs in the year 2007 and 34% in 2008 as compared to 13% in 2001 as per IATA calculations (Conrady). This cost further increases to 50% for budget carriers (wikinvest.com). These calculations by IATA are based on crude price of $73/b. With increase in this price, the percentage will increase even further. The future projections of fuel consumption and hence the prices are even more disheartening if we look at the figures projected by Energy Information and Administration (EIA). They have projected the world’s petroleum products consumption to increase from 84mb/d in 2005 to 113mb/d in 2030 with even more consumption in developing economies of Asia and Middle East (Conrady). With the increase in demand for fuel there is a further threat from peaking out of oil reserves in Non-OPEC regions. 70% of the remaining reserves are hence located in OPEC countries. These countries are economically disturbed and also depend on their oil reserves for their economic growth as this sector represents a major part of their earnings. Because of this dependence on oil their predictions regarding their oil reserves is not very reliable as they will always give out biased information so as not to harm their financial and political prospects (Conrady). It has been estimated that the airline industry contributes around 2% of the greenhouse gases and 11% of the total green house gases emitted by U.S. also (Stuijt).
The industry has too much dependence on fossil fuels. This is the greatest threat to this sector. The
They need to invest in technologies to generate green-fuel which will not only reduce their dependence on fossil fuels but also make this industry a green-industry. Better utilization of resources is…
This paper will assess my portfolio in the Oil and Gas industry. This is an industry that operates at a very challenging environment, characterized by frequent fluctuation of oil prices and stringent regulatory framework. More importantly, the industry has to contend with uncertainty that has characterized the recent decades.
During this period, there have been severe financial issues that led to collapse of some major airlines. This paper will analyze the financial issues facing the industry since 1950, particularly addressing the causes of poor financial performance. It will also evaluate the proposed remedies for these problems and analyze the current financial status of the industry.
Historically, airline services were partially regulated, because of oligopoly and monopoly concerns, as only a few airlines provided flights that were direct between cities. The aim of the United States airline deregulation was to control entries and reduce prices in the transport system in the United States.
Singapore airline is one of the leading carriers. It has an outstanding performance that outweighs its competitors. It carries approximately 16 million passengers per year, spans 5 continents, and 59 cities. Singapore airlines aim at providing best flights, best products, and best services. It has developed two strategies i.e. innovation and service excellence.
Influence of different economic factors on the current state of the American airline industry is considered in the essay. State of the market, where airline companies operate is examined. Impact of the monetary and fiscal policies on the industry is assessed. Effects of international trade on the industry is also evaluated.
The remote segment would be analyzed as follows: Political Factors With respect to the internal political arena in which Southwest Airlines operates i.e. United States of America, it can be easily concluded that the company does not face any major issue. Southwest Airlines have kept a low profile lobbying approach when it comes to addressing national political affairs (Moran, 2012).
Similarly, the airline industry provides freight services and cargo ferrying from one destination to another at a fee. Large airline companies have large aircrafts that transport large cargo and many passengers. On the other hand, some companies provide the transport services through small aircrafts that carry just a few people.
His devotion and support has made it possible for me to wind up my research successfully.
I am grateful to the managers that I interviewed in Azerbaijan; especially Mr. Ali G. Jafarli, Deputy General Manager Foreign Investments Division, SOCAR, for an honest and stimulating interview.
An average of 438,000 cubic meters per day of crude oil, natural gas condensate and crude bitumen were produced in 2008 (National Energy Board, 2008). Of this amount produced, bitumen from oil sands was
Association and that of Federal Aviation Administration expect a rise in cargo traffic and passengers along with decline in profits for the airline companies. Things are to be sorted out before the estimation of profits for the year 2012. As the third phase of quantitative
7 pages (1750 words)Research Paper
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