AVIATION SECTOR

Aviation industry in relation to current global issues

Aviation industry in relation to current global issues

Introduction

Aviation industry is the fastest growing industry all over the world. It is considered as a backbone sector of many countries as it is a very powerful source of income and generates billions of dollars revenue all over the world. Currently, there is a lot of growth noticed in the aviation sector which provides additional revenue. The size of the aviation sector is increasing day by day; new companies are introduced in the market with competitive packages and competitive facilities. However, with the increase in aviation sector size and increase in number of aviation or airline companies, the problems or issues faced by the aviation sector globally is also increased.

Currently, there are many problems or issues faced by aviation sector that depends on the region and type of service with which issues are related. Some of the major issues among them are global recession or global economic crises, increasing oil prices or increasing fuel cost, global terrorism and customers, airline security, increasing passengers and increasing cargo or luggage, large competition, noise and greenhouse gases emission, and many other issues that made the aviation sector a challenge for the companies that are present in the market and fight for their survival.

Literature Review

Current global aviation sector growth

Aviation industry plays a major role in today's global economy. It facilitates trade, and acts as a key interface between air and land based transportation of goods and passengers. It is a part of international supply chain networks. Worldwide, the industry is expected to grow at an annual long term rate of 5.6% (U.S. House of Representatives, 2008). This growth is unevenly distributed between developed and emerging markets, the latter growing at a much faster rate on a lower base. The sector is very competitive. Worldwide recession, financial sector meltdown and environmental sensitivity are putting an increasing pressure on the profitability of this sector, in addition to ongoing considerations such as terrorism and competition from high-speed trains.

History of Global aviation issues

Aviation sector is a sector that always has issues. In the early 90's the most common issue faced by the global aviation industry is the handling issue of the cargo of customers especially with the increase in number of customers all over the world. This problem is resolved when the technology of RFID is implemented within the airports all over the world especially in those airports where daily hundreds or thousands of flights are arrived and departs with thousands of customers or passengers. Another huge problem that continues until now is the issue of global terrorism and risk of hijacking all over the world especially in Asian sector. This issue is not rise after 9/11 attacks in 2001 but it is present since the beginning of aviation industry. Until now, thousands of planes are hijacked by the hijackers and many peoples lost their life due to such bad incidents. However, to reduce the risk of terrorism, latest and hi-tech equipment ...