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March 21, 2016 | Author: | Posted in aviation, technology




I . Introduction

Economy will always become major concerns when a country experiences various disasters including ones caused by terrorism . Back to five years ago , when there was a terrorist attack on the famous building in the world , World Trade Center and Pentagon , we witness that such attack has cost the country ‘s economy in major reform both operational and fundamental aspects not to mention severe impact on the air travel industry

The 9 /11 attacks have significant impact on the continuity of air traveling . This [banner_entry_middle]

is because such attacks will decrease travelers ‘ trusts to going by airplanes . When it happens , Boeing , Airbus and McDonnell Douglas , as the leading manufacturers of airplanes , faced declining demands for new airplanes from airlines

II . Airlines Industry

At present , although it is still early in the recovery and certainly high fuel prices and another terrorist attack could cause another setback air travel industry is facing unexpected growing in deploying small airplanes such as Boeing 737s or Airbus A320s . This appetite for smaller airplanes underscores the strength of the discount-airline model like one cast successfully by Southwest Airlines . In addition , some of the world ‘s largest full-service carriers such as Chicago-based United Airlines and Atlanta-based Delta Air Lines ( HYPERLINK “javascript 20void 20showTicker ‘DAL ” DAL ) continue to struggle financially that drive low-cost carriers to expand their fleets

Historically , there are three magic words in today ‘s airline competition . They are efficiency , low costs and high level of customer value . Things that make airlines stand out the crowd in airlines competition are they capability in stimulating potential demand through low fares coupled and acquired the dissatisfied other airline customers For airlines , they translate these three words by providing various experiences as following


Low Costs . By employing smaller aircrafts , Airlines are able to bring the maintenance cost down

High levels of Customer Value by establishing a strong brand that helps the company stand out of the competition in airlines industry

In to cope with the fierce competition in aircraft manufacturing Boeing has many options to consider . First , current air traveling trend suggests that Airbus strives for developing intercontinental Jumbo Jet Boeing must continues strengthening its smaller aircrafts (120-170 seats ) manufacturing and delivery that also in high demand (Figure 1

Second , U .S . Government should strengthen political and business partnership with major Asian countries that also experience a surge in the number of small aircraft demands since there are many new low cost carriers that needs small aircraft (120-170 seats

Figure 1 Aircraft Delivery Forecast by Size Category (1990 – 2005

Source : 1991 Current Market Outlook ‘ The Boeing Company , 1991

In conclusion , the trend in air travel industry based on two factors which in turn affect aircraft manufacturers . First , airlines are to buying new airplanes to taking used ones due to the fact that new airplanes provides carriers with more efficient operational costs . Second , carriers are to deploying small airplanes such as Boeing 737s and Airbus A320s that have 120 to 170 seats in… [banner_entry_footer]

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