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Air traffic management
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| Words: 1680 | Submitted: 05-Apr-2011
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DescriptionAir traffic management
Airlines have a high "spoilage" rate compared to most other industries. Once a flight leaves the gate, an empty seat is lost and non-revenue producing.
Aircraft is expensive and requires huge capital outlays. The return on investment can be different than planned.
Large workforces spread over large geographic areas, including international points, require continual communication and monitoring. This can be exacerbated during operational irregularities, such as bad weather.
While the business climate can change quickly, airlines have difficulty making quick schedule and aircraft changes due to leases, staffing commitments and other factors.
Airline market growth offers continual expansion opportunities for both leisure and business destinations . This is particularly true for international destinations.
Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like inflight Internet access and other value added products for which a customer will pay extra.
Link-ups with other carriers can greatly increase passenger volumes. By coordinating schedules, airlines can offer service to destinations via a code share agreement with a partner carrier.
A global economic downturn negatively affects leisure, optional travel, as well as business travel.
The price of fuel is now the greatest cost for many airlines. An upward spike can destabilize the business model.
A plague or terrorist attack anywhere in the world can negatively affect air travel.
Government intervention can result in new costly rules or unexpected new international competition
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