Download or read book Airline Industry Fuel Price Change Factors written by Johnny Ch LOK and published by . This book was released on 2019-05-21 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapter 2Can tourism industry influence airlineprofitability In my study, I suppose terrorism and the price of petroleum both factors which had properties of distinct and interrelated close relationship to raise airline cost. Moreover, these variables ( terrorism and the price of petroleum) displayed differentiation, self replication, efficiency and hierarchy which can cause risk events to airline industry. However, I also think the other internal and external threat factors of airline industry, such as inflation, bank interest rate, business model, service quality, airline fuel or plane engine technology, air ticket pricing, brand loyalty, airline strategic management, government policy and fuel hedging of these factors which can also raise the risks to threaten any airlines existence in airline industry. There are two basic business models in tourism industry. They are network ( full service) and low cost ( discount) carriers. The network carrier model employs diversification strategy by increased domestic destinations, serving international routes, providing diverse seating arrangements ( business, economy and first class), maintaining a complex system of offering high quality service. Otherwise, low cost ( discount) airlines focus on lower air fares. To keep operating costs down, discount airlines offer shorter routes and provide point-to-point destinations rather than through sophisticated flights are primarily in domestic destinations. So, discount airlines operate a common model aircraft fleet, offer a single seating arrangement and cheaper flight services offered to compare network airlines. However, these two basic business models have their unique competitive abilities to provide any airlines existence in tourism industry nowadays.In fact, natural resource of oil is decreasing in our earth. But as the same time, human demand is increasing and oil supply is decreasing, so it also causes the oil fuel price is increasing to supply to airline industry. It influences not only to airline industry, it also impacts of higher oil fuel price to tourism, such as expansion of airports are made based on expected demand increase. Tourism has been proven to many adverse events, including terrorism, flight disruptions. Beside, the bad natural climate change influences, such as the volcanic ash cloud event occurred in April 2010 year. So, airline industry need to concern climate change because it will cause high fuel prices indirectly. For example, the event occurred the extreme increase in operating costs for airlines in 2008 year, due to unprecedented prices for aviation fuel also meant, that despite the introduction of fuel charges, so this event causes the global tourism industry recorded losses seriously. Even if alternative fuels become commercially available for airlines which are still likely to be more expensive than present aviation fuel.Higher airfares in the future are likely to lead to reduction in travel and cause tourists to shift from more distant to closer destination. When some of the economic responses to higher oil prices are obvious assessing the overall economic impacts on tourism is difficult. However, long term changes in global oil price rises will be similar to global changes in other commodity prices, exchange rates and income. It is therefore important to consider the impact of high oil prices on tourism from a general equilibrium perspective rather than relying only on bottom partial equilibrium approaches.However, I believe tourism and airline industries have close relationship, such as tourism and airline industries are likely to suffer in an environment of high oil prices.

Download or read book Factors Influence Airline Industry Fuel Price Change written by Johnny Ch Lok and published by Independently Published. This book was released on 2018-08-29 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Preface This book research this question: Can predict when airline fuel price changes? This book aims to let economic students who can learn how to use behavioral economic method to predict when and why the airline fuel price will rise. I hope any airline company management leader who can learn how to apply behavioral economic method to predict when fuel price rising to avoid its risk and how to avoid the fuel price rising bad influence to cause whose airline businesses failure for long term. In my books, I shall indicate what factors cause the fuel price will raise as well as what the other external threats can cause risk to airline industry. Moreover, I shall also compare the different fuel price rising factors and other external threats whether which is the most effort to influence airline industry failure. Then, I shall give recommend how global airline industry can apply behavioral economic method to predict when the fuel price will rise possibly.

Download or read book Prediction Factors Influence Airline Fuel Price Changing Reasons written by Johnny Ch Lok and published by Independently Published. This book was released on 2019 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: 1.2Positive change environment factor increases airline entertainment need (2)The second airline fuel price increasing factor: How does positive social change environment factor influence airline entertainment industy. I shall indicate economic growth example. When one country has better economic development in the year. Then, employers will have more effort to do businesses. Then, they will create many jobs to provide to the country citizen to do. When, these unemployed people have jobs to do, they will have extra income to save. They can spend extra to prepare to spend to enjoy their entertainment every year, such as travelling. Thus, the positive social change will influence traveller number increasing, then the plane flying times will also increase, it will cause planes need to use much fuel to fly. The result, it will also increase fuel demand, but the fuel natural resource number will decrease, so fuel supply will also decrease. Finally, it will also cause fuel price to be risen.1.3External industries behavioral changing factor to influence airline fuel price changesAlso, I shall indicate the financial risk of airline industry evidence from Cathay Pacific airways and China airlines against key determinants of which include interest rate, exchange rate and fuel price risk for the period of January 1996 year to December 2011 year. During this period, these key external factors which were the most serious influence to cause these two airlines choose to change their strategic behaviors. Due to any these financial risks is difficult to predict and it was also changing often, these factors will also affect any airlines stock returns which arise from changing economic conditions, e.g. fuel price movements and fluctuations in exchange rates. These external unpredicted changing factors will attribute to the air tickets cyclical demand, capital investment, fixed costs of labor and landing rights to this global airline industry. However, the relationship between fuel price and stock prices varies across economies. The effects of oil price changes in sub-sector indices, such as wood, paper and printing, insurance and electricity. In the past, on global stock exchange market was positively significant in 2011 year. Otherwise, with respect to the U.S.A. aviation industry, some economists suggested that global airlines stock returns were negatively to percentage change in fuel prices related to any airline firm value, e.g. Qantas and Air New Zealand were negatively share price growth to fuel price risk in the short term in the 2011 year.Thus, it brings this question: Will external industries strategy behavioral changing factor be one important factor to impact fuel price falling or rising? I feel external industries strategy behavioral changing factor must not one important factor to impact fuel price falling or rising .The reason is such as below: (1) airline transportation industry itself demands are increasing

Download or read book Airline Industry Fuel Price Change Factor written by Johnny Ch LOK and published by . This book was released on 2019-11-16 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fuel price rising or decreasing factorPositive social change influenceWhat suitation is negative social change. I shall indicate globalizational society example. We are entering globalizational society. For example, air tickets can be bought from internet, so travellers won't need to go to travel agent to buy conventienty. It is due to the global travel industry is increasingly competition. Thus, global travel industry competition will bring negative social change to influences fuel price rising because it will increase traveller numbers and airline flight times to fly. When, traveller's travelling desire demand numbers will be grown up fastly, then their online electronic-ticket buying or consumption behaviors will be rise. Thus, it will also cause online e-ticket price is decreased to attract many travellers to choose to buy e-ticket from online channel more than paper-ticket visiting travel agent channel. Thus, it is negative social change influences to cause fuel price rising due to plane flight flying times will increase and airline company will increase demand to buy many fuel to prepare to fly often. When fuel demand will rise, then the fuel sellers will rise fuel price in possible. Thus, airline industry global competition will being negative social change to influence fuel price raising up and air ticket price falling down to attract many traveller numbers to choose to buy among different travel agents.Negative social change influence What suitation is positive social change. I shall indicate economic growth example. When one country has better economic development in the year. Then, employers will have more effort to do businesses. Then, they will create many jobs to provide to the country citizen to do. When, these unemployed people have jobs to do, they will have extra income to save. They can spend extra to prepare to spend to enjoy their entertainment every year, such as travelling. Thus, the positive social change will influence traveller number increasing, then the plane fliging flying times will also increase, it will cause planes need to use much fuel to fly. The result, it will also increase fuel demand, but the fuel natural resource number will decrease , so fuel supply will also decrease. Finally, it will also cause fuel price to be risen.Also, I shall indicate the financial risk of airline industry evidence from Cathay Pacific airways and China airlines against key determinants of which include interest rate, exchange rate and fuel price risk for the period of January 1996 year to December 2011 year. During this period, these key external factors which were the most serious influence to cause these two airlines choose to change their strategic behaviors. Due to any these financial risks is difficult to predict and it was also changing often, these factors will also affect any airlines stock returns which arise from changing economic conditions, e.g. fuel price movements and fluctuations in exchange rates. These external unpredicted changing factors will attribute to the air tickets cyclical demand, capital investment, fixed costs of labor and landing rights to this global airline industry.

Download or read book Learning How Environment Change Influences written by John Lok and published by . This book was released on 2022-08-11 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In chapter one to three concern how economic environment can influence global fuel price change, I shall indicate on how economic environment can influence the relationship between airline freight service fuel consumption useful price change .Can economic measurement can predict when airline fuel price changes to airline freight service industry I shall indicate what factors cause the fuel price will raise as well as what the other external threats can cause risk to airline industry. Moreover, I shall also compare the different fuel price rising factors and other external threats whether which is the most effort to influence airline industry failure. Then, I shall give recommend how global airline industry can apply behavioral economic method to predict when the fuel price will rise possibly. In final chapter concerns how social change influences human behavioral change ? Why human behavior may be influenced by social change? Our individual behavior whether can be influenced to bring negative or positive attitude by social change? I shall attempt to indicate cases to explain whether our individual behavior can be influenced to changed by social environment change. Readers can have more understand how and why social change may influence our behavior in possible.

Download or read book Oil Price Decontrol Impact on the Air Transport Industry written by Hugh J. May and published by . This book was released on 1975 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Airline Industry Fuel Price Rising Prediction written by Johnny Ch LOK and published by . This book was released on 2017-11-25 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book aims to let economic students who can learn how to use behavioral economic method to predict when and why the airline fuel price will rise. I hope any airline company management leader who can learn how to apply behavioral economic method to predict when fuel price rising to avoid its risk and how to avoid the fuel price rising bad influence to cause whose airline businesses failure for long term. In my books, I shall indicate what factors cause the fuel price will raise as well as what the other external threats can cause risk to airline industry. Moreover, I shall also compare the different fuel price rising factors and other external threats whether which is the most effort to influence airline industry failure. Then, I shall give recommend how global airline industry can apply behavioral economic method to predict when the fuel price will rise possibly.

Download or read book The Distributional Implications of the Impact of Fuel Price Increases on Inflation written by Mr. Kangni R Kpodar and published by International Monetary Fund. This book was released on 2021-11-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.

Download or read book Commercial Aviation written by Susan Fleming and published by DIANE Publishing. This book was released on 2009-11 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. passenger airline industry is vital to the U.S. economy. Airlines directly generate billions of dollars in revenues each year and catalyze economic growth. Interest in the airlines' ability to weather volatile fuel prices and the economic recession led to congressional requests for this review. The auditor examined how: (1) the financial condition of the U.S. passenger airline industry has changed, the principal factors affecting its condition, and its prospects for 2009; (2) airlines have responded to the factors affecting their financial condition; and (3) changes in the industry have affected airports, passengers, and the Airport and Airway Trust Fund, which funds the FAA¿s capital programs and most of its operations. Includes recommend. Charts and tables.

Download or read book Environment Economic Methods Avoid written by Johnny Ch Lok and published by . This book was released on 2019-05-25 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: In fact, some airlines have adopted more fuel saving technology, so whose fuel consumption would not use more than other non fuel saving technology airlines. So, the owned fuel saving technology airlines which will buy less fuel to use. It means that they won't need fear fuel rising to increase their expenditure because they only need to buy less fuel to use and their fuel demand won't fall, even fuel price has risen.However, it seems fuel price increasing will not be the only factor to influence the airline industry's traveler numbers decreasing, due it is possible that the airlines need to rise air ticket price to riase their profit, sue to their fuel cost has risen. However, due to some airlines which have fuel saving technology, so which can avoid to use more fuel to provide planes to use and which fuel costs will be reduced, then which can provide cheaper air ticket fare prices to compare the non fuel saving technology airlines. The result will cause some non owned fuel save technological airlines will lose travelling customers in this global airline travelling market, also the non fuel saving technology airlines need to renew their fuel technology if which want to keep their competitive abilities to avoid to close down their businesses.Can airline fuel self-organization avoidfuel price rising costI feel one airline fuel self-organization can avoid fuel price rising to influence cost rising because it doesn't often buy any fuel from fuel suppliers. However, there are some airlines which are the characteristic of airline fuel self organization and they are present in that both of oil fuel production and providing flights service in airline industry. So, these airline fuel self organizations can control the oil fuel price by themselves. However, one airline fuel self organization is also evident in efforts by businesses acts of terrorism against economic targets by adopting proactive steps, such as airline and airport security. So, it seems airline fuel self organization can reduce the risk to avoid oil price raising and terrorism attacks to raise cost in airline industry risk management sector.

Download or read book Explaining Why Fuel Cost Factor Influences Airline Trveller Choice written by Johnny Ch LOK and published by . This book was released on 2020-03-19 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: In economic theory, on income effects indicate negative impacts on tourism demand, the exact effects of higher oil fuel prices for specific destinations are far from clear. However, airline industry's different market segments show different sensitivities to air ticket fares changes. On the first hand, if the visitors are long destinations generally wealthier than average and therefore potentially less affected, as energy costs would be a smaller proportion of their income compared will be those from less wealthy groups. On the second hand, oil prices don't translate into higher transport costs especially not on air routes that are highly competitive and that are maintained for strategic reasons. On the third hand, many other factors shape tourists' decision making, including emotion drivers or those related to images, fashions and perceptions. Increasing environmental protection awareness of tourists could also be an important factor to influence tourism consumption, instead of oil fuel price raising causes air ticket fares raising factor to reduce traveler numbers. However, oil price raising reason causes also due to high use of cars, vans and domestic air transport in some countries, e.g. Hong Kong, China countries, there are many people like to buy cars to drive. So, the private driver numbers are increasing demand to cause these countries' oil fuel prices raise in the short time suddenly. It will influence HK and China air tickets prices need to be risen , due to there are many cars, vans and domestic air transport tools need to use oil to supply energy to cause oil import numbers will increase to HK and China and HK and China airlines need to pay higher price to buy oil to use. In the result, HK and China airlines air ticket prices will also need to rise and it will influence HK and China travel consumption desire.

Download or read book Fuel How Influences Public Transport Need written by John Lok and published by . This book was released on 2022-05-16 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book research question: Has it relationship between airline fuel price rising or falling and the vehicle fuel consumers? How fuel price can influence public transport need to passengers? What factors can influence public transport to passengers needs? This book aims to let economic students who can learn how to use behavioral economic method to predict why the airline fuel price will rise or fall can influence public transport passengers need. I hope any airline company management leader who can learn how to apply behavioral economic method to predict when fuel price rising in order to reduce fuel cost to airlines. In my books, I shall indicate what airline industry itself factors cause the fuel price will raise as well as what the other industries' external threat factors can cause fuel cost rising to airline industry.

Download or read book Prediction Airline Oil Price Variable Behavior written by Johnny Ch Lok and published by . This book was released on 2019-09-07 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: In economic theory, on income effects indicate negative impacts on tourism demand, the exact effects of higher oil fuel prices for specific destinations are far from clear. However, airline industry's different market segments show different sensitivities to air ticket fares changes. On the first hand, if the visitors are long destinations generally wealthier than average and therefore potentially less affected, as energy costs would be a smaller proportion of their income compared will be those from less wealthy groups. Thus, the more wealthier travelers who won't decrease travelling desire, even the fuel price raises to case the air ticket price to be increased.On the second hand, oil prices don't translate into higher transport costs especially not on air routes that are highly competitive and that are maintained for strategic reasons. So, non air transportation industry won't influence customer number to be decreased easily.On the third hand, many other factors shape tourists' decision making, including emotion drivers or those related to images, fashions and perceptions. Increasing environmental protection awareness of tourists could also be an important factor to influence tourism consumption, instead of oil fuel price raising causes air ticket fares raising factor to reduce traveler numbers. However, oil price raising reason causes also due to high use of cars, vans and domestic air transport in some countries, e.g. Hong Kong, China countries, there are many people like to buy cars to drive. So, the private driver numbers are increasing demand to cause these countries' oil fuel prices raise in the short time suddenly. It implies airlines need to consider their country car number whether is increasing or decreasing. If their country car number is increasing, it is possible to cause fuel price to be risen up because car demand is increasing to need to use more fuel and it has less supply of fuel in the year. Otherwise, if their country car number is decreasing, it is possible to cause fuel price to be fallen down because car demand is decreasing to need to use less fuel and it has more supply of fuel in the year.

Download or read book The Effect of Fuel Price Increases on Airlines and Passengers written by United States. Congress. House. Committee on Transportation and Infrastructure. Subcommittee on Aviation and published by . This book was released on 2001 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book POLLUTION HOW INFLUENCES written by John Lok and published by . This book was released on 2022-07-04 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Environment How Influences Service Industry Consumer Behavior written by Johnny Ch Lok and published by . This book was released on 2021-04-16 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: What is the relationship of oil price and terrorism to airline industry to influence ticket price increasing?Terrorism is one negative psychological factor to influence the travellers who choose to travel to the country. However the effects of oil price and terrorism on airline profitability was limited to a regional perspective, e.g. the terrorism attack of plane crash event to USA on 11 Sept. After the terrorism attack happened on USA 11 Sept. incident of terrorism attack was restricted to events of skyjacking, attacks on oil production, refinery and distribution. Other types of terrorist activities, such as attacks on financial targets or senior government officials could have an adverse effect on the petroleum and airline industry. I think the disruption of the production or distribution of petroleum because of incidents of terrorism was costly in terms of loss of business and the inflationary effect on fuel dependent products or services. In fact, some airlines have adopted more fuel saving technology, so whose fuel consumption would not use more than other non fuel saving technology airlines, these own fuel saving technology airlines which do not need to increase ticket prices to influence passenger numbers to be decreased in possible. It seems fuel price increasing will not be the only factor to influence the airline industry's traveler numbers decreasing, in addition to terrorism external incident factor influence. However, due to some airlines which have fuel saving technology, so which can avoid to use more fuel to provide planes to use and which fuel costs will be reduced, then which can provide cheaper air ticket fare prices to compare the non fuel saving technology airlines. The result will cause some airlines will lose travelling customers in this global airline travelling market, also the non fuel saving technology airlines need to renew their fuel technology if which want to keep their competitive abilities to avoid to close down their businesses.Also, I shall indicate the financial risk of airline industry evidence from Cathay Pacific airways and China airlines against key determinants of which include interest rate, exchange rate and fuel price risk for the period of January 1996 year to December 2011 year. During this period, these key external factors which were the most serious influence to cause these two airlines choose to change their strategic behaviors. Due to any these financial risks is difficult to predict and it was also changing often, these factors will also affect any airlines stock returns which arise from changing economic conditions, e.g. fuel price movements and fluctuations in exchange rates. These external unpredicted changing factors will attribute to the air tickets cyclical demand, capital investment, fixed costs of labor and landing rights to this global airline industry. However, the relationship between fuel price and stock prices varies across economies. The effects of oil price changes in sub-sector indices, such as wood, paper and printing, insurance and electricity. In the past, on global stock exchange market was positively significant in 2011 year. Otherwise, with respect to the U.S.A. aviation industry, some economists suggested that global airlines stock returns were negatively to percentage change in fuel prices related to any airline firm value, e.g. Qantas and Air New Zealand were negatively share price growth to fuel price risk in the short term in the 2011 year. Thus, airline industy needs to concern whether the effects of oil price changes in sub-sector indices, such as wood, paper and printing, insurance and electricity influences to predict when oil price will increase or decrease because it will lead to influence its passenger travelling numbers indirectly and these sub-sector industries have close relationship to bring cause and effect influence to oil price to airline industry.

Download or read book New Economic Picture written by Johnny Ch Lok and published by . This book was released on 2020-05-11 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: ⦁Is fuel price rising only factor to cause airline risk in short termIn my study, I suppose terrorism and the price of petroleum both factors which had properties of distinct and interrelated close relationship to raise airline cost. Moreover, these variables ( terrorism and the price of petroleum) displayed differentiation, self replication, efficiency and hierarchy which can cause risk events to airline industry. However, I also think the other internal and external threat factors of airline industry, such as inflation, bank interest rate, business model, service quality, airline fuel or plane engine technology, air ticket pricing, brand loyalty, airline strategic management, government policy and fuel hedging of these factors which can also raise the risks to threaten any airlines existence in airline industry. There are two basic business models in tourism industry. They are network ( full service) and low cost ( discount) carriers. The network carrier model employs diversification strategy by increased domestic destinations, serving international routes, providing diverse seating arrangements ( business, economy and first class), maintaining a complex system of offering high quality service. Otherwise, low cost ( discount) airlines focus on lower air fares. To keep operating costs down, discount airlines offer shorter routes and provide point-to-point destinations rather than through sophisticated flights are primarily in domestic destinations. So, discount airlines operate a common model aircraft fleet, offer a single seating arrangement and cheaper flight services offered to compare network airlines. However, these two basic business models have their unique competitive abilities to provide any airlines existence in tourism industry nowadays.In fact, natural resource of oil is decreasing in our earth. But as the same time, human demand is increasing and oil supply is decreasing, so it also causes the oil fuel price is increasing to supply to airline industry. It influences not only to airline industry, it also impacts of higher oil fuel price to tourism, such as expansion of airports are made based on expected demand increase. Tourism has been proven to many adverse events, including terrorism, flight disruptions. Beside, the bad natural climate change influences, such as the volcanic ash cloud event occurred in April 2010 year. So, airline industry need to concern climate change because it will cause high fuel prices indirectly. For example, the event occurred the extreme increase in operating costs for airlines in 2008 year, due to unprecedented prices for aviation fuel also meant, that despite the introduction of fuel charges, so this event causes the global tourism industry recorded losses seriously. Even if alternative fuels become commercially available for airlines which are still likely to be more expensive than present aviation fuel.Higher airfares in the future are likely to lead to reduction in travel and cause tourists to shift from more distant to closer destination. When some of the economic responses to higher oil prices are obvious assessing the overall economic impacts on tourism is difficult. However, long term changes in global oil price rises will be similar to global changes in other commodity prices, exchange rates and income. It is therefore important to consider the impact of high oil prices on tourism from a general equilibrium perspective rather than relying only on bottom partial equilibrium approaches.