SITE MOVED

This and my other blog now have a permanent home at :

http://www.entertainmeguru.com

come visit, spread the word!

Sunday, September 13, 2009

US Airline Industry is Diminishing*

Airlines all around the world have been cutting down their flights for the past two years, to match with the demand in air travel getting smaller.
Lots of big airlines depend greatly on a small amount of passengers who pay constantly high fares. Most of them are business travelers. The problem is that businesses are closing, and that means less business flights.

This may seem like no big deal to the rest of us who don't fly often on business errands, but since less "high end" tickets are purchased, airlines are forced to shrink their airplane supply, and consumers will be left with fewer flights to choose from. Aside from that, there will be over-crowding often as well. This could in turn also cause higher fares.

Thankfully, with our dead-end economy, this will not happen. The reason is because airlines measure capacity in what is referred to commonly as "seat miles", which are the number of miles flown multiplied by the number of seats on the plane. In the same way that a store with too much inventory must cut its prices down, the airline industries cut its capacity by reducing flights or using smaller planer, which carry fewer passengers.
Looks like soon enough, that vacation you had planned to Aruba might have a closing cover put over it, at least until the economy gets a little healthier.

* information from yahoo.com, cbsnews.com, and usatoday.com

No comments:

Post a Comment