The Current Global Economic Crisis Would Change the Face of the Aviation Industry as We Know It Today- Is There Truth in the Statement?

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Lucas Lee

Executive Summary
The current global economic crisis has changed the way aviation industry goes about its business. It has brought about a boom in low-cost carriers, which has made travelling by air cheaper for the masses. Services offered by airlines and airports are also of higher standards to make people want to travel by air.

The economic downturn has seen a significant drop of investments in the aviation market. Airport ground handlers and airplane part manufacturers have also had to retrench their workers in order to counterbalance the poor market. The amount of air traffic is likely to decrease as well, as people are travelling lesser and choosing cheaper alternatives.

People would try not travel as far as possible, but if there were a need, would try to travel as cheap as possible. The aviation industry has to evolve and remain relevant to suit the needs of people, and in time to come aviation would be forced to become cheaper in order to recover from the current economic crisis.

Aviation is seen as a luxury, where travelling by air is something only the well-off can afford. It was only when airlines started to make airfares more affordable, that everyone had a chance to travel cheap. This seems to be the current situation for the aviation industry.

Budget airline companies are doing well and this may be the new face of airlines. They tend to edge out other airline companies, mainly due to the fact that it provides cheap travelling from one place to another. By comparing the prices of the air ticket between two airline companies in Malaysia, Air Asia and the Malaysia Airlines, it costs only $81 to travel from Singapore to Phuket, Thailand on an Air Asia flight, but it would cost $618 on Malaysia Airlines on the same flight routes.

People still travel by services provided by the normal airline companies or the five star airlines, however because of the economy downturn, people will seek out...