In 2008 the cost of oil soared, and so did the cost of jet fuel.in response, american airlines...
announced in may of that year it was cutting some routes and reducing the frequencyof flights on other routes.. 1.In this instance is jet fuel a variable cost or a fixed cost? explain why 2. What dud American airlines gain from reducing the number of flights? 3.Was the airline more likely to cancel flights which tended to be filled to capacity , or ones that typically fly partly empty?explain 4.the next generation of airplanes from boeing, the 787, uses less feul than many of the aircraft currently being flown.if american airlines could replace its aircraft with more fuel efficient models, wou
1. fuel is of course, a variable cost - which has historically plagued the airline industry
2. reducing the number of total flights is something all carriers have flirted with to some degree or another. This is in response to simply having too many planes in the air with too few passengers throughout most of the last decade
It is a delicate balance for air carriers to limit the amount of lower-profit flights, while at the same time expanding into new markets like China as they fight to recover out of the recession.
3. Of course they're more likely to cancel flights with high seat vacancy
4. This represents the difference between your full-service network carriers (like American Airlines or Air Canada in Canada) and lower-service differentiated service carriers like Westjet in Canada (perhaps Southwest in the US??) Smaller carriers have the advantage of buying smaller planes, which take less fuel, which means they can still turn a profit even if all the seats aren't full.
On the other hand, FSNCs take care of the longer international flights that low-cost carriers do not make. They have historically held more popularity with business-class travellers as well.
I have a hub on the market outlook for the Canadian air traffic sector in 2010, which i will be publishing shortly
by Cassie Smith 5 years ago
Is Obama trying to destroy American Airlines?The Obama Administration is suing to stop the merger of American Airlines and US Airways. US Airways seems pretty healthy but American seems to have no hope. It has a horrible leader in Horton, the relationships between management and unions...
by gracenotes 7 years ago
Does it seem like American Airlines is providing worse and worse service?I volunteer once per week at DFW Airport, and I have seen some examples of this lately as I tried to help passengers. On a personal level, I had a bad experience with AA last year as I tried to return from Colorado on a...
by Kevin J Timothy 6 years ago
Do you feel that American Airlines could care less about your luggage?They seem to be notorious for being really carefree about accounting for your stuff.
by Doing my part 9 years ago
AIG announced that they're not going to pay American Airlines tab for issuing immediate benefits in claims based on the Hudson River water landing of American Airlines Flight 1549 piloted by the heralded Sully Sullenberger. They argue that thier insurance clause is based on negligence of the...
by freecampingaussie 4 years ago
When you travel on a plane do you book your own flights online or go through an agent ?If you book online what site do you prefer for domestic and international flights ? What tips do you have for booking flights in the USA or anywhere else ?We are looking at traveling a lot next year and would...
by Stacie L 5 years ago
Airline offers baby-free 'quiet zones' on flightsFor many of us (the childless ones, anyway), few things about flying are as excruciating as a crying baby. We know, babies have to travel too, but when you're trapped in an aluminum tube six miles in the air, nerves get rattled and fuses get short....
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