AN INDUSTRY IN TURMOIL

The airline world/travel world is in turmoil. Airlines are going out of business left and right, and it’s getting harder and harder for travel agencies to make a buck due to the removal of commissions.
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I have worked in the airline/travel industry for over 25 years. From the time of Freddie Laker and the start of the low cost carriers through the fuel crisis, deregulation, the recession of the 80’s, the hijackings and the first war in the desert to present. In each case the refrain has been that people will always travel and this is still true, however, now there is a noticeable reduction in those numbers. Airfares have increased minimally since the 70’s but fuel surcharges and taxes have almost doubled the cost of an airline ticket. Governments decide that they want to raise money for third world nations and for the environment. Who better to pass the tax on to, than the airlines who of course pass it on to the consumer. What does this mean? While people are still traveling, the numbers by air are less. More and more people are making trips close to home or saving up for that once in a life time trip. The low cost carriers aren’t low cost any more and flight operations are being reduced or discontinued. The end result of this is that with increased fuel prices more and more airlines are suffering. Airlines are beginning to collapse. In the last few years several airlines have been forced into bankruptcy and last year were coming back to a solvent position, however, now the situation is worse than it has ever been. So far 25 airlines have gone out of business both passenger and cargo and its not over.

The CEO for BA at a conference stated that he expected an additional 30 airlines to shutdown before the end of the year. Nine airlines that have announced layoffs account for 27,000 employees. The outlook for the airline industry is bleak. Even my job is in question either because a merger is in the wings, or the possibility that due to a delay in a decision by the European Commission, we will be driven into bankruptcy.

This is why I have sought out another venue for raising the capital required to live the life I lead. Another job is not an option as the market is saturated with people looking for jobs and why should I place myself in a similar position of uncertainty as many other companies, not just airlines are also laying off employees. There is a choice we make. Do we hold out in hopes of getting that golden handshake or should we be looking for that out? The choice is always yours.

Iata warns of Airline bankruptcies
http://www.lloyds.com/CmsPhoenix/DowJonesArticle.aspx?id=406675#

BA CEO warns more airlines to follow XL
http://news.sky.com/skynews/Home/Business/Willie-Walsh-And-Paddy-Power-Predict-More-Airlines-To-Follow-XL-Out-Of-Business/Article/200809215098361