Viable Airways’ Contribution to Economy

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Table of Contents

Introduction
Current situation of the industry
Contribution to economy
Air safety and Terrorism
Environmental impact
Conclusion
References

Introduction

Since the Wright brothers invented aeroplanes, technological advancements in this field have continued to flow with zeal and zest and in the process introducing machines in the world that have simplified the transportation problem that the world has been experiencing. The invention of the planes did not go in to commercial use immediately due to logistical issues, safety and other intricacies. Later on it took ground with the US being the first to experiment with commercial air transport in 1914. The service being offered by around five companies some of them still in the industry today such as Delta and Northwest Airlines. The trend was to take root also in the UK and Europe at large in the following years. By the early 1920’s commercial flights were common though passenger service was sporadic and could not sustain the airways companies and thus they tended to rely more heavily on transporting of bags and mail. During this time most of the flights were mainly domestic and over short distances as there were no long haul planes available by then. With the emergence of large aircraft manufacturing companies there was an increase in international flights, the most notable ones being made across oceans. Since then the industry has grown in leaps and bounds connecting the world effectively and bringing more meaning to the global village idea.

Achieving this fete has seen billions and billions of dollars all over the world sank into the development of this industry. One may wonder whether the benefits gained from this industry putting in mind the fatalities of air accidents and resultant losses met and continue being met are worth it. This paper is dedicated to discussing the industry at length in its usefulness in connecting the world against its effect on our lives and world in economic sense either in a positive or a negative way.

Current situation of the industry

At the moment, so many companies ply this industry that consumers of the service, an average of 2 billion fliers per year (one out every three persons) are lost in making choices. Its consumption as a service has been the most preferred one especially in international travel more so across continents forming gateways to the host countries and regions at large. The importance held in owning an efficient gateway that connects the world and the country involved have seen many governments controlling the main air carriers in their countries though there exists other private operators. Owning such is an attempt of maintaining a good national image and a country’s pride as ferrying of passengers form abroad is the first experience of the destination country that foreigners have. Countries that take pride in controlling their national image by owning an airline do so effectively and in the process there are good efficient airlines. Among the major players are American Airlines, Emirates, British Airways, and Swiss Air all of which are owned by governments. Most prominent private operators are Virgin Atlantic and KLM. (Conrady and Buck, 2008).

Contribution to economy

Positive

What makes air transport one of the favorite modes of transportation for tourists is still a wonder. However, we can make a few inferences by noting the efficiency and the speed of air transport. Tourists make arrangements to travel to their tour destinations during the holidays when they are not working or are not in school. It would therefore be expected each and every one of them will want to gain the maximum utility by maximizing on the time available for touring means that the involved will choose the fastest and most convenient mode of transport to the destination which happens to be by air. As earlier said, nations will thus use their national carriers as marketing tools to offer tourist attraction sites and facilities.

As an industry air travel is seen by many as a business venture that can plough in a lot of profits going by the air travel fares that the existing carriers charge. As shown in the above case in promoting national interests, governments are testimony in what the industry is capable of in creating and stimulating business opportunities. (Conrady and Buck, 2008) Many air operators concentrate considerably on holiday goers and tourists who provide a constant stream of customers. It therefore happens that countries that rely heavily on tourism in their economies such as Thailand continue to attract the services of many air operators and thereby marketing the country in other aspects that promotes economic growth in the recipient country. As a result of these externalities Thailand has moved from not only as a tourist destination but an investor’s destination in other industries.

It is obvious that large scale air travel operations calls for a complex airports. It therefore happens that a country bent on increasing the air travel industry has to ensure that it has constructed airports that can handle all sizes of airplanes as the larger the airplane the larger the airport has to be to ensure safety. In the US for example there exist numerous airfields both private and federal to serve the growing number of airlines and customers. The growth in the network of airports stimulates growth in other sectors of the economy such as road network and service industry. Previously inaccessible areas are opened up to civilization and development. (Wood, 2006).

Other ways we may say that air travel has contributed a lot is quickening transportation of aid and rescue mission workers in case of disasters and the supply of relief in such cases. Business has also benefited as it is now easier to transport perishables over long distances.

Negative

The cost of making aircrafts is prohibitive and time consuming. However, governments are willing to sink colossal amounts of money and take pride in owning or hiring a fleet of planes to serve the nation and the world. Such amounts of money for the poor and less developed nations could find alternative use that could be more beneficial than the pride of owning an airline company. These countries will go further and build airports to serve their fleet that will connect them to the world. The irony in this is that there is no guarantee that the venture is profitable and their viability as a business venture is only a secondary thought. As a matter of fact, the airline industry in its history in the world since inception has made a cumulative loss though the losses are usually compared to the stimulus it injects in economic growth. (Wood, 2006) On cases where governments do not own carriers they continue to offer subsidies for fleet development and airport construction.

Air safety and Terrorism

Since the September 11 2001 terrorist attack on the US, more and more passengers are a bit skeptical about air travel bearing in mind that the attack originated from a hijacked plane. The total deaths in the collapse of the World Trade Center and the crashing of the planes reached 2, 974 people. Such cases have been few though the rare ones are not of that magnitude. However the rare ones that occur and numerous scares have done the industry harm depriving the world economy the benefits of investing in this industry. But from another perspective we can say that the industry’s vulnerability to such cases of terrorism and hijacking is in itself encouraging and promoting terrorism. (Wood, 2006).

It is not rare to find people who shun away from using airplane as their preferred mode of travel in fear of planes and air accidents, the latter being the most common. However, comparing the safety of flying and other means such as by road and by rail you realize that flying is the safest. In fact flying is about twice as safe as rail travel and six times safer than road travel. But most people wrongly believe that if you are on a plane that crashes, then you are certain to die. For example, in the USA between 1983 and 2000, there were 568 aircraft accidents. There were 53,487 people on board in these aircrafts, and about 95% of them (51,207) survived. In general about 90% of passengers and crew members involved in aircraft accidents survive. Such a number could give us assurance on the safety of the passengers but not the recovery of the damages and losses incurred during those rare crashes. Some of the most memorable ones are March 27, 1977 Tenerife disaster that killed 583 persons when two aircrafts collided on the runway at Los Rodeos airport in the Canary Islands.

Environmental impact

In general aircrafts contribute to environmental pollution in many ways such as excessive noise and harmful emissions that contribute to global warming. The most prominent form of pollution is through the emissions. Measures have been put in place to reduce the emissions by making better jet engine and more refined fuels. But the increase in air travel over the recent years is canceling out the advances so far made in reducing the emissions. In the European Union alone for example greenhouse gas emissions from aviation industry rose by 87% from 1990 to 2006. A report published last month presented some of the key findings to the All-party Parliamentary Sustainable Aviation Group meeting held earlier in the year which revealed that between 2000 and 2025 the rapid growth in aviation globally is set to generate massive environmental damage. The number of people affected by aircraft noise is estimated to rise from 24 million to 30.3 million, emissions of nitrogen oxides (causes air pollution) to rise from 2.5 million tonnes to 6.1 million tonnes, and the carbon dioxide emissions from aviation to rise from 572 Metric tonnes in 2000 to 1229 Metric tonnes in 2025.

Conclusion

What builds us also destroys us, so they say. In regards to this issue as shown in the discussion above we cannot conclusively say that air travel is one of the best advancements to humans and the world economy without us being reminded of the troubles and disadvantages that accompany it. We can all sing about the joys and the benefits it has brought to the human race but we will again wail in remembrance of the destruction that it has brought. However, we have the capacity to reduce and manage some of the complications associated with it for maximum benefits. Measures to cab hijacking cases are already in place and flight crews receive more informed training to handle incidents and carry on the work of delivering the world at our doorstep if not table.

References

Conrady, R., & Buck, Martin, (2008). Trends and Issues in Global Tourism, New York: Springer.

Wells, A., & Rodriques, C., ( 2004). Commercial Aviation Safety, New York: MacGraw Hill.

Wood, Richard, (2006). Aircraft Accident 2^nd ed, Boston: Endevor Information. Web.

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