| Isla Campbell The aviation industry has faced a number of challenges over the past couple of years. Indeed, the rising price of fuel, coupled with an economic downturn has led to both revenue losses and a diminishing passenger base. However, in an attempt to recover profits and attract new custom, the airlines are fighting back, proving that air travel can still be accessible and affordable.
As with many other businesses, increased raw material costs and consumers with less disposable income have had a huge impact on the airline industry. In fact, over an 11 year period, average jet fuel prices skyrocketed from 58.4 US cents per gallon in 1997 to 455.9 US cents in 2008. Although prices have dropped considerably over the past year, these high costs have obviously had a huge impact on the airlines.
Not only that, but due to the recession, global travel statistics have also been affected. According to the Office for National Statistics, the number of people travelling to the UK in 2008, for example, decreased by 2.7 percent from 2007. The amount of Britons travelling abroad also fell, by nine percent, in the final quarter of 2008. Such health scares as Bird and Swine Flu have additionally impacted upon people’s decisions to stay at home.
In light of these challenges, a lot of airlines have had to make redundancies, or have even been forced to close down their operations. Many have additionally had to cut their seating capacities, as it has simply become too expensive to charter so many aircraft. However, in a bid to stay afloat, a number of companies have also worked hard to improve their services and offer attractive incentives to consumers.
For instance, many airlines have streamlined their customer check-in and baggage processes, whilst others have introduced new services, such as offering to arrange airport parking or transport between airports and city centres. Their aim is simple: to continue to offer a range of helpful and attractive services for customers that provide value for money, whilst at the same time trying to reduce their overhead expenses as much as possible.
One of the most popular strategies that has been employed by airlines across the board, however, is to offer fare sales. Due to the levels of competition within the industry, customers have found that many air fares to popular destinations have been slashed, thus encouraging them to carry on flying.
So, although the aviation industry has faced some tough times, many of the airlines have endeavoured to retain consumer interest. And, because of improved services and reduced costs on travel such as KLM flights, the industry looks as though it will survive the storm. As with any business, there are always issues to overcome and by remaining focussed, the airline industry has shown that it is possible to stay afloat. |
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