¶ … Money in Aviation: An Examination of Support
The history of American flight is generally one of pride and wonder. Historical figures associated with the first airplanes are generally revered by history books and society as a whole. These are figures like the Wright brothers, Amelia Earhart, Charles Lindbergh and others who most agree made a positive impact on human life and symbolize a leap of mankind towards advanced technology and increasing modern times. Modernity. Technology. These are all things that airplanes and flight represent to Americans and they're widely viewed as things which have improved life on this planet for the better. This begs the question as to why the airline industry still remains one of the most volatile, low (or no) profits business around. The book, Why We Can't Make Money in Aviation, by Adam M. Pilarski, seeks to both scrutinize and illuminate the general failure of the airline industry to reach stable and consistent profitability. While some might say the text is heavy handed, it actually represents as a whole, a fair and comprehensive overview of the airline industry, its attributes and shortcomings.
The Ten Plagues
Pilarski opens the text of the book in a smart and succinct manner. Pilarski calls attention to the most catastrophic event to happen to the airline industry in its entire history: the terrorist attacks of 9/11. While Pilarski does give those events the acknowledgement for being as detrimental to the industry as they were (in fact, he even offers up a fact that most Americans aren't aware of: that government had a bailout plan for the airlines, in fear that the entire industry would go under and cease to exist), he does eliminate any and all illusions about the incident. One of the most effective elements of the text is that Pilarski does not waste any time specifying what he refers to as the ten plagues: these are all events that happened more or less in succession that have had essentially a crippling impact on the auto industry. Pilarski begins to state each plague immediately. The first plague Polarski highlights is the recession, a plague which is definitely not to be underestimated by any means. The recession was definitely global and the impact was pervasive: companies downsized, unemployment was up, house sales plummeted,...
Aviation Book According to Pilarski (2007), "the financial situation of the airline industry, especially in the U.S.A., has been between disaster and catastrophe," (p. 3). Financial wizards like Warren Buffet have made "bombastic pronouncements" related to the economic illnesses of the airline industry (9). Dynamic entrepreneur Richard Branson, himself seduced by the desire to own an airline, has likewise stated, "How do you become a millionaire? Start as a billionaire, and
Overregulation Finally, Pilarski reviews the explanations which blame airline underperformance on onerous government-imposed restrictions and obligations. Many observers, especially deregulation-fanatics, claim that airline companies are inhibited by excessive government regulation and public ownership of airlines. Pilarski rejects these explanations which attribute financial performance to government interference, stating that airline carriers outside of the U.S. subject to much more regulation have performed better than unregulated airlines. Analysis Overall, Pilarski seems to agree that it
Behavioral Finance and Human Interaction a Study of the Decision-Making Processes Impacting Financial Markets Understanding the Stock Market Contrasting Financial Theories Flaws of the Efficient Market Hypothesis Financial Bubbles and Chaos The stock market's dominant theory, the efficient market hypothesis (EMH) has been greatly criticized recently for its failure to account for human errors, heuristic bias, use of misinformation, psychological tendencies, in determining future expected performance and obtainable profits. Existing evidence indicates that past confidence in the
Logistics in Aviation Aviation logistics: Competitive advantage and technological innovation Prelude In the modern era, the worldwide logistics and supply chain is very cut throat and keeping an edge over others is important for all the firms in operation. Worldwide competition in aviation logistics business is cut throat with numerous firms. Firms in this business survive only when they maintain an edge over their rivals in the business in order to keep the
Aviation Management is a complex issue in any environment. In the 21st century environment Aviation Management faces many challenges. These challenges are related to Globalization, Challenges specific to legacy airlines, Air Traffic control shortages and Ethics including the impact of greenhouse gas emmissions. The purpose of this discussion is to examine the Challenges of the 21st century in Aviation Management and the forces of change. Globalization Challenges for Legacy airlines Like any industry,
AVIATION CIVIL AVIATION'S SARPS Civil Aviation's SARPs Civil Aviation's SARPs The primary objective of aviation security relates to airport infrastructure protection. The agencies also insist on the need to control people's access within protected areas. This essay discusses the roles and contributions of International Air Transport Association as well as the International Federation of Air Line Pilots' Associations to the aviation industry. The world's airlines have a trade association called IATA. The organization hosts primarily
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