Airlines: A Global Outlook
San Jose, California (PRWEB) January 18, 2012
Follow us on LinkedIn – Air transportation industry is a capital-intensive market, which is highly susceptible to business fluctuations and economic trends. The global economic downturn shook the industry, as demand for air travel plummeted worldwide even as oil prices plummeted. During the period 2008-2009, global economic activity took severe beating, as industrial production and trade declined substantially, which had a direct effect on the global transportation industry. With consumer confidence declining and discretionary spending and travel plummeting, demand for air travel faced turbulent weather during this period. Cargo volumes at air ports and sea ports declined substantially during late 2008 and early 2009, landing the air freight industry into a crisis. As demand for goods fell worldwide, manufacturers resorted to correction of their high inventory levels, which led to significant dip in cargo volume shipments worldwide.
Enduring significant losses through 2009, the global airline industry faced favorable prospects in 2010, when air traffic grew substantially. However, rising fuel prices are beginning to worry airline companies once again. Fuel prices continued their upward trajectory through 2011, thereby increasing their costs of operations and negatively affecting their profitability. Natural disasters in Europe, Chile and Japan; the political unrest in the Middle East; and security issues also played their part in the disruptions faced by the industry through 2010 and 2011. Major issues that continue to pressurize the global airline industry include volatile oil prices, growth in various economies worldwide, and fluctuating exchange rates.
The industry made significant strategic moves to protect interests of airlines and the business in general. Capacity rationalization, cuts in airfare, and consolidation within the industry ensued, as airlines fought to remain buoyant. Consolidation activity over the recent years is aimed at achieving optimal operations and enhancing profitability. Acquisition of new, efficient aircrafts aids in increasing airline efficiency that enables better management of costs. A major change that the industry has been witnessing over the years is the growing popularity of low cost carriers. Tough economic conditions in recent times have enhanced the popularity of this business model, and several large carriers have been venturing into this market. Tremendous growth in economies in emerging markets is resulting in increased affordability for air travel, leading to ramped up demand for air transportation. Demand for new aircraft is expected to increase in the following years due to increasing passenger traffic and the need to replace old, fuel-inefficient aircraft in the wake of rising fuel prices. Additionally, liberalization of air travel between various countries worldwide would open up new routes, which would further increase demand for air travel and airlines.
The research report titled “Airlines: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an aerial view of the global airline industry, identifies major short to medium term market challenges, and growth drivers. Market discussions in the report are punctuated with fact-rich market data tables. Regional markets elaborated upon include United States, Canada, Mexico, Japan, Germany, UK, China, India, Malaysia, Philippines, and Brazil, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.
For more details about this comprehensive industry report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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