Will Airlines Fly High Again?

Things started going bad for airlines after 9/11. Since then air travel has been on a steady decline with airlines going in and out of bankruptcy. Passengers became too nervous to fly after the terrorist attacks and security became more of a hassle for airline passengers. Flying just hasn’t been the same since then and will not ever be again. That moment defined a lot of things in the world today and air travel was a major one.

Budget airlines like Southwest began to grow and expand. More people wanted cheap fares and promoted the growth of such budget carriers. Online shopping for low fares began to create a drag effect on airfares and in direct relation, airline profits. Major airlines like Delta, began to sink into bankruptcy with what seats they have filling with these lower fare tickets.

Next came a spike in fuel prices for jets. This forced airlines to cut seats and ground planes. Fewer planes going to fewer destinations meant less demand to fly and the airlines continued their downward spiral. Airlines began to add charges and increase fees to try and increase revenue but, this makes air travel more expensive and reduces the numbers who see it as an affordable travel option.

The recession hits and the economic downturn hurts across the board. Airlines feel the effects as people hold on to their expandable income, earn less, or have simply been laid off. Business travel declines as corporations look for ways to cut costs and survive the poor economy. Business travel decreases and video/ teleconferencing rises.

When you look at the airlines’ earnings for the year it is a sea of red across the board with nearly all airlines taking losses. Airlines are make more cuts, including routes, employees, and grounding jets. None of these things helps make the airline stronger but, in today’s world they are all just trying to hang on until they get clearance from the economy to fly again. Will the habits of less travel and expectations of low fares carry on past this recession? I believe so, it looks like the airlines will have a ways to go before they can return to the past glory they had once held.

www.captainnowhere.com

Tags: air travel, airfares, airline passengers, airlines, bankruptcy, Budget airlines, Business travel, cheap fares, economy, fly, low fares, passengers, Southwest

Eat, Shop, Live, Fly “Air City”

One of the world’s largest airports, Seoul’s Incheon International, has plans to become a city. The grounds are already just about the size of Manhattan. About twenty thousand people already live in apartments on the site. MGM is partnering with the effort and will be installing an amusement park within this new “Air City”.  Aside from the amusement park there will be construction on more apartments, shopping centers, businesses, recreation centers, and a hospital. Everything you would expect to see in a city and then some. Needless to say this would be a tourist attraction adding to the local economy. The airport is located off of the Yellow Sea and there are plans to include a marina for those who fancy sailing.

Would you want to live at the airport? It may be a convenience for airline workers but, I suspect the novelty would wear off eventually. The constant noise off takeoff and landing. The smell of jet fuel in the morning? It would be a cool place to see but, despite my love for air travel, I don’t think I would like to permanently check my bags at the airport.

www.captainnowhere.com

Tags: Air City, air travel, airline, airport, construction, news, Seoul's Incheon International