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Essay / Research Paper Abstract
This 4-page paper provides an overview of the current state of the airline industry (in the U.S.) and its potential future. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: AS43_MTindusairl.rtf
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Unformatted sample text from the term paper:
In other words, nothing positive. These are the preconceived notions of the industry; one in which profit-making fat cats continually squeeze every
drop of profit margin from every single aircraft, squeezing passengers in like cattle, and making the trips genuinely uncomfortable. The discomfort is further exacerbated by long waits during check-ins and
security scanning. And when security breaches do occur (like the one on Northwest Airlines on Christmas Day), people and passengers become more exacerbated because the solution seems to be "lets
make the passengers even more uncomfortable and inconvenienced because of one security snafu." Airlines have been in an uncomfortable position ever since deregulation
and price wars occurred during the 1980s and 1990s. But when the 9/11 terrorist attacks occurred and the airline industry begged for a government bailout in the wake of the
attacks (and certain red ink), things got worse. Some years after Congress rushed through a $15 billion bailout that was to stabilize the industry, critics claimed the bailout didnt work
(Mutzabaugh, 2004). Airline companies ended up declaring bankruptcy anyway. Furthermore, critics pointed out that the loans and grants that were part of the bailout package allowed failing carriers to keep
flying longer than they rightfully should have (Mutzabaugh, 2004). In a free market scenario, the critics contend, government bailouts shouldnt be allowed - they point to the fact that prior
to 2001, Pan Am and TWA, both of which were dominant carriers in their day, went out of business because they couldnt survive the changes in the industry (Mutzabaugh, 2004).
So the government bailout (that didnt work) combined with the fact that airlines continue earning profits, and announcements that executives continue getting
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