As and United States 13 companies went bankrupt

Published by admin on

As a periodical sector, civil aviation has
suffered considerable losses during the 2008 and 2009 economic crisis. Harvey
and Turnbull (2009) implied that the operating losses reached to 150 major
airlines  with  $ 15 billion and United States 13 companies
went bankrupt in 2008. All American companies to the exception of Southwest
have reduced their abilities. In Europe, Scandinavian Airlines (SAS) is the
company that has reduced its capacity the most with a decrease of 40 percent. The
economic crisis had various side effects on the personnel of the airline companies.
Thus, Lufthansa has reduced the working hours in its freight operations, British
Airways applied to wage freezes and layoff. Trade unions interviewed on the
subject reported voluntary departures and non-renewal of temporary contracts.
The International Federation of Supervisory Associations of the Air Traffic
Control (IFATCA) welcomed with concern the information which training programs
would have been revised downwards. Additionally, In April 2010; the eruption of
Iceland’s Eyjafjöll volcano caused the worst event of civil aviation since the
Second World War. In the week following the eruption (explosion of volcano)
100,000 flights were canceled and it is estimated that cost of $4.7 billion
globally for this week alone. Its effect reached up to 10 million travelers. Following
this event, the International Civil Aviation Organization (ICAO) set up a
volcano monitoring system which is a working group published practical tools in

Another example from Geneva; in 2007, the
number of flights decreased during the year. Before the crisis; nearly 40,000
aircraft landed in Geneva airport. Business aviation is especially so important
in Swiss. Probst (2016) argued that they are losing its power due to crisis. However;
In Zurich, the fall is more moderate and in the surrounding airfield from Sion
to Bern city is stable, even rising. The number of commercial flights is
growing at a crazy speed. While capitals benefit from platforms dedicated to
business aviation. But this is not the case in. Geneva, which coexists on a
single airstrip, business and leisure, favors mass-market connections for money
matters. So that, each device pays a fee based on its weight; for instance; a
big car pays more and public service but the airport is an “autonomous”
(independent) public institution. European Aviation Safety Agency (which is an
organization that is founded for Europe aviation safety) (2008) launched
negotiations with the national aviation authorities to assess the importance
and implications of the crisis that extended to all sectors of economic
activity. Examination of economic and financial statistics, as well as
forecasts made by various aviation organizations, quickly showed us that it
would be a major crisis for the transport and all related activities. Indeed,
even if at the time the general trend was too optimistic and the numbers showed
that the recovery would not intervene until mid 2009s and that the economic
crisis would at least continue until mid-term 2010. Since air transport is
essentially dependent of the evolution of the gross domestic product and taking
into account experiences of the past, then it is hardly reasonable that freight
(goods transported by aircrafts) traffic will resume before the beginning 2010
and that passenger traffic does not start again progress before mid-2010. Given
the difficulty of easily adapting the offer on demand, we had to expect
overcapacity generating a serious unstable of companies probably leading to
restructuring industrial changes, or even deep changes in applied policies in
the sector.

Categories: Trade


I'm Iren!

Would you like to get a custom essay? How about receiving a customized one?

Check it out