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Essay / Research Paper Abstract
This 7 page paper looks the Indian based airline Jet Airways, examining the economic impacts on the airline including issues such as the economy, fuel prices and projected demand, and then presents a PEST analysis. The bibliography cites 13 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEjetair.rtf
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Unformatted sample text from the term paper:
this decreased demand as air travel is a service that is price sensitive, where there is an economic downturn and there is less disposable income there will be a decline
in the level of demand for air travel (Baye, 2007). This is a well established pattern and has been seen in previous recessions (Song, 2006). In the short term there
are excepted to be severe losses due to the downturn in the industry as a whole, the International Air Transport Association has predicate that 2009 will see global losses of
$4,7 billion (IATA, 2009), revenue is expected to fall by 12% and passenger numbers by 5.7% for 2009 (IATA, 2009). This fall is not uniform, and some areas will see
it manifest in different ways, when looking at the drop in demand, this is expected to drop by 6.8% in Asia, 7.5% in North America, 6.5% in Europe, 7.8% in
Latin America and 7.8% in Africa (IATA, 2009). Jet Airlines are not in the worst effected area, but they cannot escape this impact and in April - May 2009
the domestic routes has seen a 18.54% passengers compared to the same period in 2008 (Jet Airlines, 2009). There has been a significant increase in the international passages, of more
than 89%, but this is due mainly to new routes and more aircraft flying, and is helping to balance the losses in the domestic market (Jet Airways, 2009). The
Airports Council International believe that there will be a gradual increase over the next twenty years, with Europe seeing an average increase between 3% and 5% per year, North American
between 2.9% and 3.2%, and the world averaging between 3.6 and 4% per year and Asia Pacific between 5% and 8% per annum (ACI, 2007). The problem with these forecasts
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