Transcription of The Future Economics of the Airline Industry
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The Future Economics of the Airline Industry
The Future Economics of the Airline Industry A Changing Vernacular William S. Swelbar MIT International Center for Air Transportation Isn t It Interesting? The US Airline Industry is marginally profitable economic trends are weak Consumer confidence is anything but Manufacturing activity showing little to no expansion Passenger traffic up; cargo traffic is in decline European economic activity troubled Premium travel trends are exhibiting little growth IN THE Airline Industry IT S ALWAYS SOMETHING A Timeline of Events Impacting the Airline Industry In Relation to the Airline Index 2010: United and Continental merge 2010: Southwest acquires AirTran 2009: Delta airplane crotch bomber arrested 2009: Afghanistan surge 2009: H1N1 epidemic 2009: US unemployment rate reaches highest level since 1983 2008: Bear Sterns, AIG, Lehman, Washington Mutual collapse 2008-2009: Recession drives largest YOY revenue decline since 9/11.
The Future Economics of the Airline Industry A Changing Vernacular William S. Swelbar MIT International Center for Air Transportation
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