Economic and futuristic view of the Airlines

avatar

Greetings dear friends of @Project.HOPE, yesterday I read an interesting and great publication of the friend @busted1 entitled: Why Airlines Companies aren't Making Profit all the Time, at the end of the reading I left him my appreciation, however, I was concerned because despite the low economic profitability, between the airlines still prevails market competition, hence, I decided to investigate a little about it, mainly to deepen and know the variables that may be affecting the low economic profitability that reflect the companies that make commercial air transport.

Fig. 2 Despite low economic profitability, market competition still prevails among airlines. Image of public domain, Author: Orna W, 2019

Now, reading some articles on the subject and crossing information, I found that the biggest problem that airlines face, is the wage inequality that prevails between developed and underdeveloped countries, and I mention underdeveloped, to call fundamentally the countries in South America and Africa that face problems of purchasing power, therefore it is intuitive, that the common denominator of low profitability that reflects the air transport companies, is the inability of users of these countries to pay regular airfares.

In the case of South America, and according to the appreciation of specialists of the air industry, in the region the profitability per ticket represents an estimated between 2 and 3 dollars, while in the United States and in most European countries, the profitability is referenced between 10 and 15 dollars per ticket.

Fig. 3 In South America the profitability per ticket represents an estimated between 2 and 3 dollars. Image of public domain, Author: Juno1412, 2020

Basically most of the strategic analyses, focused the problem to the low purchasing power at salary level, nevertheless, some specialists think that this problem can be solved, as long as more efficient and more economic commercial airplanes are designed, in this respect is to emphasize that companies like Airbus, at the present time are working in airplanes that will revolutionize the aerospace industry, under a design of combined wing, lighter, with equal capacity of load but 20% more efficient than a standard modern airplane.

The model of the aircraft currently being developed by Airbus has been codified as the "Flying-V", and in addition to increasing profitability, or being more efficient than current designs, this new aircraft also aims to reduce the environmental impact generated by the commercial aerospace industry.

BIBLIOGRAPHICAL REFERENCES CONSULTED:

[1] Ben Morris., and Theo Leggett. Greener planes of the future... or just pretty plans?. Article: Online access

[2] Sputnik Mundo. ¿Qué hay detrás de la baja rentabilidad de las aerolíneas latinoamericanas?. Artículo: Acceso Online

[3] Informeaereo. Preocupa baja rentabilidad de la industria aérea en Latinoamérica. Artículo: Acceso Online

[4] Gabon Review. Kenya Airways deja de volar a Gabón. Article: Online access

OBSERVATION

✔ The cover image was designed by the author: @lupafilotaxia, incorporating the public domain image background: Holgi, 2013

Original manuscript, uploaded from the Project HOPE community website

airline airplane future business profitability environment stem
0
0
0.000
9 comments
avatar

Congratulations @lupafilotaxia! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You made more than 2500 comments. Your next target is to reach 3000 comments.
You received more than 23000 as payout for your posts. Your next target is to reach a total payout of 24000

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

0
0
0.000
Reply
avatar

Hello @lupafilotaxia,
Not surprisingly, the cost of tickets and the low profitability in third world countries to clarify them in some way, now I am surprised by the "Flying-V" planes, for the fact that they are designed for environmental welfare, beyond the profitability they may have. Thank you for your contribution

0
0
0.000
Reply
avatar

Greetings @madridbg

Right, the main objective is its environmental role, evidently being more efficient, besides consuming less fuel, are elements that position it as a highly profitable aircraft. Thank you for leaving your comment.

0
0
0.000
Reply
avatar

Greetings friend @lupafilotaxia. Without a doubt, people's purchasing power influences the decision to make a trip by plane, so in underdeveloped countries it is not surprising that airlines face greater problems of profitability. Let's hope that more efficient planes can improve this panorama.

0
0
0.000
Reply
avatar

Greetings dear friend @emiliomoron

The expectation of more efficient aircrafts is focused on making them more environmentally friendly, so they consume less fuel, and are manufactured with structures whose extraction generates the least environmental impact. Thank you for your visit.

0
0
0.000
Reply