OBSERVATIONS OF FUNDAMENTAL CHANGES IN THE DEMAND FOR AVIATION SERVICES

The airline industry has been in a period of serious financial distress since the September 11, 2001 terrorist attacks, the outbreak of SARS and the war in Afghanistan. While the airline industry is cyclical in nature and has had to contend with serious exogenous shocks, this paper looks at evidence of change in the demand for air transport services in recent years and discusses whether the changes are temporary or represent a fundamental changes in the demand for air services. The paper argues that short term falls in demand due to these exogenous factors mask a long term downward trend in airline yields which is viewed as a function of airline deregulation, increased competition, excess capacity, downgrading activity, and the growth of low cost airlines.

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  • Corporate Authors:

    Elsevier

    The Boulevard, Langford Lane
    Kidlington, Oxford  United Kingdom  OX5 1GB
  • Authors:
    • Mason, K J
  • Publication Date: 2005-1

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00988196
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 21 2005 12:00AM