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Hope is on the horizon. The airline industry is starting to climb out of the recession, but it could be years before business travel returns to its pre-recession level, if it ever does. Pre-recession, business travel was the most important growth segment for passenger airlines. Unfortunately, the recession forced frequent corporate travelers to adopt less [...] When new federal aviation cargo screening rules go into effect next August, the resulting chaos could ground thousands of tons of cargo (see our Dec. 2 post). Both the feds and the aviation industry are worried that there won’t be enough trained screeners or certified screening facilities to handle the job. An expansion of the [...] If you feel a logistical nightmare coming on, you’ve probably read about the new federal aviation cargo screening rules scheduled to go into effect in August 3, 2010. In just 8 short months all freight shipped aboard commercial airlines will have to be screened for bombs just like suitcases are screened now. Federal and aviation [...] Airlines and airline suppliers are joining the social media revolution to connect with customers, particularly wired-in businessmen and younger customers who twitter and tweet their way through the day. Twitter, Facebook and LinkedIn are changing the way companies interact with their customers. Cutting-edge companies are using social media to create a new style of customer [...] Under pressure to cut carbon emissions and beef up fuel economy, the FAA and airline industry are examining a number of interesting proposals geared at making the industry more eco-friendly. While airline transportation currently accounts for only 2% of worldwide carbon emissions, “we are a very visible 2%,” Paul Steele, director of environmental initiatives for [...] In our last post we talked about some of the new fees airlines are charging to stopgap losses. While we understand that imposing fees for extra or unusual services can be a good way to recoup losses without raising ticket prices, we wonder if a consumer backlash isn’t developing that will hurt the airline industry. [...] Airlines are hurting. With Americans pinching their pennies, airline travel has taken a nose dive and lackluster third quarter reports mean the tough times will continue for awhile. To the disgruntlement of passengers, airlines seem to be trying to recoup their losses by tacking on more fees instead of raising ticket prices. With few exceptions, [...] Despite current problems, European commercial aircraft builder Airbus predicted a rising global market for the airline industry over the next 20 years. Reported in the Wall Street Journal online, the French-based aeronautic manufacturer predicted demand for 25,000 new aircraft worth $3.1 trillion over the next two decades, an annual passenger traffic growth rate of 4.9%. [...] Pundits are calling it the “Silver Tsunami.” It’s the graying of the American work force. T0day, 19% of American workers are age 55 or older. By 2016, that number will climb to 25%, according to a recent survey by the independent Pew Research Group. America’s most numerous generation, Baby Boomers are pushing retirement back and [...] In contrast to decreasing passenger traffic reported by major airlines (see our Sept. 8 post), business is booming for low-cost carriers like US Airways. The ability of no-frills carriers that run necessarily lean operations to succeed where others are failing is seen as a harbinger of future trends in the airline industry. Economic backlash from [...] |
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