Reaction Paper on "Money in Aviation in the Book"

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[EXCERPT] . . . .

Money in Aviation

In the book "Why We Can't Make Money in Aviation," Adam Pilarski addresses a perplexing, and costly, business problem: why are airline companies so consistently unprofitable? This question is important not only for investors and students of business management, but for American taxpayers as well. The airline industry is one of the most highly subsidized industries in the United States.

Pilarski surveys the various explanations offered for the poor financial performance of the airline industry to variety of factors. He splits these explanations into three categories: factors caused by the airline industry itself, factors caused by the airline companies, and factors that are caused by government. Pilarski critically evaluates each explanation and rejects most of them. The only explanations which Pilarski finds convincing are those which assign culpability to the airline companies themselves.

Thesis: Pilarski's critique of the explanations is very incisive. It reveals widespread misconceptions about the airline industry and of basic economics in general. Pilarski shows that many explanations sound plausible, even reasonable, on the surface but collapse under even the most cursory investigation.

Background

Pilarski attributes the poor performance of airlines to a number of different factors. Pilarski devotes a chapter to each individual factor. He splits these factors up into three categories: exogeneous factors (originating outside companies), endogeneous factors (originating within airline companies), and overregulation.

Exogeneous Factors

Pilarsk

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i reviews the explanations that claim that the problems are caused by certain industry realities. He terms these problems "the nature of the beast" factors, meaning the nature of the industry. Because they are out of the control of airline companies, he calls them exogeneous factors. These factors are: cyclicality, ease of access to capital, cost of aircraft, too much competition, and the naivete of market entrants in the airline industry.

Pilarski rejects the explanations based on cyclicality, cost of aircraft, and too much competition. Regarding the argument that there is too much competition, Pilarski notes that even if the number of competitors were reduced from 6 to 3, the remaining 3 companies would still use the same ineffective business practices, which would lead to the same poor financial performance.

Pilarski, however, accepts that ease of access to airplane financing may be eroding financial discipline among airline companies.

It also floods the airline industry with weak players who would normally be weeded out at the financing stage in most other industries. Also, Pilarski considers the possibility that the prestige and cache of the airline industry is attracting a lot of naive market entrants, or "dreamers and suckers" as he calls them.

Endogeneous Factors

Pilarski reviews the explanations that claim that the problems are caused by the airline companies themselves. He refers to these "self-inflicted" problems as endogeneous factors. These factors are: labor relations, bad management, and pricing. Pilarski is particularly focused on the pricing factor. He believes that most airline companies are simply charging too much for the product they are providing to their customers. He points to the low-cost carrier Southwest Airlines, one of the only carriers to achieve profitability, as an example of effective pricing. Indeed, the rise of boutique low-cost airlines that actually provide more amenities at a lower price proves… READ MORE

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Quoted Instructions for "Money in Aviation in the Book" Assignment:

“

I need a Final Paper OUTLINE as well as the Final PAPER!!!

*****"Why Can*****'t We Make Money in Aviation*****" by Adam Pilarski

Perform an analysis on that argument and present your own argument either in support or opposition.

Analyze his argument and decide whether you would take up a supporting or opposing position.

Carefully consider the text, *****"Why Can*****'t We Make Money in Aviation?*****" and begin analyzing the presented arguments and sources.

Remember, your paper is not just an evaluation of his argument, but a presentation of your own position in relation to his and others out there.

Do your research and find what other people are saying on the subject. Once you have an idea about what you would like to say DRAFT A SIMPLE THESIS STATEMENT.

Remember the idea isn*****'t just to form an opinion and look for sources that support your viewpoint, but to really get to know the subject.

Create a simple outline of your paper before writing your first draft in order to organize your thoughts and plan the flow of your argument.

Once you have a thesis, OUTLINE how you want to develop your argument in the body of your paper. This should include some draft headings and simple summaries about what you intend to say. Finally, include an ANNOTATED BIBLIOGRAPHY.

This will OUTLINE which SOURCES you intend to use, a SUMMARY of the article, why you are including it, and any direct QUOTES you intend to use.

THEN USE THE OUTLINE TO WRITE THE PAPER:

Grading

Your paper will be graded on the following criteria:

* Thesis: Did you write a strong thesis statement? Does your claim seek to complicate or present a new perspective on the subject? Does the conclusion match the stated claim in the thesis?

* Readability: How is the paper*****'s overall readability. Did you present your information in an interesting way? Does the paper sustain a coherent point of view? Is it clear who is speaking?

* Argument: How well is the argument presented? Does the paper progress logically from one idea to the next?

* Analysis: Have you provided an accurate analysis of the source material? Is it clear what articles and subject you are responding to and why?

* Sources: Are sources appropriately used? Does the paper ever rely on opinion instead of evidence? Are examples used well to support the argument? Is the connection between the cited evidence and the argument clear?

* Language: Are all the ideas presented in a clear and concise manner? Does the paper make effective use of language to express ideas or do they rely on informal ideas, opinions, or cliches? Could the paper be made more concise?

* Format: Does the paper use correct APA formatting? Does it include an abstract? Are appropriate citations included? Is proper grammar and spelling used throughout?

How to Reference "Money in Aviation in the Book" Reaction Paper in a Bibliography

“Money in Aviation in the Book.” A1-TermPaper.com, 2011, https://www.a1-termpaper.com/topics/essay/money-aviation/767281. Accessed 5 Oct 2024.

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[1] ”Money in Aviation in the Book”, A1-TermPaper.com, 2011. [Online]. Available: https://www.a1-termpaper.com/topics/essay/money-aviation/767281. [Accessed: 5-Oct-2024].

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1. Money in Aviation in the Book. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/money-aviation/767281. Published 2011. Accessed October 5, 2024.

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