Research Proposal on "Aviation Is an Aspect of Life"

Research Proposal 11 pages (3182 words) Sources: 11

[EXCERPT] . . . .

Aviation is an aspect of life for millions of people in America who own aircraft or fly recreationally. According to an article published by the Aircraft Owners and Pilots Association General Aviation is defined as any type of civilian air travel except for scheduled passenger flights ("What is General Aviation"). According to the article general aviation includes many different things including the monitoring and spraying of crops, wildlife surveys and emergency medical evacuation.

The article also explains that nearly 70% of the general aviation flights are related to public services or business. The author insists that airplanes are often needed in these instances because they are more flexible than other forms or transportation and air travel is also the fastest form of transportation ("What is General Aviation"). These civilian flights are also more convenient than commercial passenger flights because they do not have the same constriction as it pertains to schedules or security ("What is General Aviation").

Overall the article is clear in defining what general aviation is and what it is not. The author also points out the general aviation is vitally important to the carrying out of tasks that many take for granted but improve the quality of life of citizens. This is the case as it pertains to airborne traffic reporters who hover over traffic in helicopters to broadcast the traffic situations of busy highways and intersections.

This description of general aviation brings to the forefront the need for general aviation and the ways in which it can be preserved.

Week 2- Article Critique

In recent months there has been a great deal of emphasis on the increased costs associated with traveling by air. Much of this additional cost has been blamed on the increase in gas prices. An article published in the Wall Street Journal entitled "Northwest Posts Loss on Rising Fuel Prices" explains this phenomenon. According to the article Northwest Airlines lost $377 million in second quarter. Much of this lost was due to the increase in gas prices. The author makes it clear that the airlines fuel costs for the second quarter, $1.2 billion, increased by 41% when compared to one year ago. To deal with this increase in fuel costs Northwest will reduce the airlines mainline capacity by as much as 9.5% during the fourth quarter. In addition 2,500 people will loose their jobs and nearly 50 aircraft will be grounded.

As it relates to the Oligopoly that is that Airline industry, the article points to the coming and long anticipated merger of Northwest with Delta Airlines. The article is straightforward in the manner it explains the special nature of the aforementioned merger, which would make the airline the largest in the world. The author explains the merger is supposed to occur by the end of the year once the two airlines have met all the requirements established by the government.

Overall the article is informative in explaining why fuel prices have effected Northwest and the airline industry in general in such a negative way. The article also explains that in order to deal with this problem Northwest will take certain measures including offering fewer seats and grounding flights to reduce the cost of fuel.

Week 3-Article Critique

Forecasting is an essential aspect of air transport and other industries such as travel and hospitality. Forecast allow the airline industry to know or have some idea about the number of passengers it can expect in any given year or quarter. The projections allow the airline to make decisions concerning rates and fees. An article entitled "2008 Forecast: Will the Luck Hold?," discusses airline forecast for companies as it pertains to different regions of the world.

This particular article was written in January of this year (2008) before fuel prices skyrocketed to all time highs. In the article the author alludes to the idea that airlines would be as profitable as they were in 2007. This article mentions the downturn in the American and Global economy; however the author does not seem to have a grasp on the severe nature of the economic conditions that have manifested themselves over the past few months. These conditions have greatly impacted the forecasting that took place at the end of 2007 and the beginning of 2008.

As it pertains to forecasting and various regions of the world the article focuses on Europe and Asia. According to the article forecasts for European airlines predicted that the region would not be affected by the credit crunch. The forecast were not particularly rosy for Europe but they were not horrible either. Forecasts for Asia were also presented in this article. The author asserted that the Asia/Pacific region has been disappointing as it relates to profitability. The author attributes this disappointment to growing pains associated with the new and emerging economies in the region and attempting to adapt the correct business models.

Week 4- Article Critique

The manner in which airlines utilize marketing can make or break the company. According to an article entitled "Most airlines shun marketing as way to fly through storm," the marketing strategies of many airlines have changed drastically in recent months.

The author contends that in the midst of bad times for the airlines many have opted to reduce the large number of costly ad campaigns. However, the author contends that this shift in marketing strategy could prove detrimental for the airlines. The author points out the poor customer service, the increase in fees and the decrease in the number of flights available to travelers could mean that the airlines will continue to experience significant losses.

The article does explain that although most American Airline companies have opted to reduce the number of large ad campaigns, Southwest Airlines has not succumbed to such measures. Southwest is the only American Airline company to remain in the black even with the increase in the price of fuel. Southwest has even managed not to charge passengers with additional fees for checked luggage. To this end, new print and television ads for the company highlight the fact that it does not charge such fees.

The author of this particular article insists that the internet age has also played a key role in marketing through word of mouth. The article points to the power and significance of blogs and online rating systems that allow consumers to share their experiences with others over the internet. Such ratings can influence consumer choice as it pertains to choosing an airline to fly with. Overall this article provides a great deal of insight into the current state of marketing strategies in the Airline industry. Through this article the author exposes the strengths and weaknesses of marketing strategies in the industry.

Week 5- Article Critique

Airline passenger demand and the elasticity of demand are of utmost concern to airlines in these difficult times for the industry. If airlines raise their rates too much consumers will stop flying. Many have already begun opting to take the train as opposed to dealing with the time consuming and costly endeavor that air transportation has become. An article entitled "Bleak Times Carry the Seeds of Future Strength While Airlines Struggle" explains that "as consumer spending keeps dropping in the United States and other developed economies, business travel outlays - the most profitable by far for the airlines - could easily fall by $2 billion to $3 billion over the next 12 months. That, he said, adds up to a strong likelihood of further airline bankruptcies."

In essence the author is explaining that the demand for air travel amongst the most profitable fares is decreasing rapidly. The article goes on to state that this decrease is due to the increase in the price of fares and also to the increased availability of private and corporate airplanes that business travelers are choosing. The article also explains that most of the fares sold in the United States -- approximately 90% -- are discounted fares.

This particular article seems to emphasize the need to get rid of old airplanes. The article explains that newer airplanes contain new technologies that reduce the amount of fuel that planes use. If airlines can incorporate these newer planes into their aging fleets they will be able to reduce fuel cost. Once fuel costs are lowered, airlines will be able to lower fares and consumers, especially business travelers will return to commercial flights. Until this time the airlines will continue to monitor demand and elasticity as it pertains to consumers.

Week 6-Article Critique

Airfreight is an aspect of the aviation market that has long received a great deal of attention. The 2008 Annual Report on World Wide Air Freight asserts that there is a great deal of optimism in this particular segment of the industry although there are economic woes throughout the world. This particular article attributes this optimism to the fact that many air freight carriers have begun to switch to newer more fuel efficient aircraft that also have higher payloads. The International Air Transport Association (IATA)… READ MORE

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