AVIATION MODULE

Global Issues in Aviation Module

Global Issues in Aviation Module

Introduction

Aviation is supposed to be the most integral and important tool for a company to progress and prosper. Imagine if some important meeting or deal is delaying because of slow or inefficient aviation services, than no one will ever be able to do his work on time. The more important issue is that it's also an important mean of local and international transport. Nobody can imagine travelling long distances without it. The business applications and methods also depend heavily on it. Within seconds, the deals for business are done and there are many issues that need to be resolved by meeting on different locations throughout the globe. If the means of transportation is not efficient than expected, than there is a very strong chance of severe financial loss. Our main focus will be around global issues created by aviation industry. We will discuss different global issues as well as Bio fuel and its involvement in aviation industry. We will also deal with its issues too.

Discussion

Countries that oppose the European Union's move to include airlines in its scheme to control carbon emissions would find it difficult to bring a dispute to the WTO, an official with the global trade body said on Friday. China and India have banned their airlines from taking part, raising the prospect of a potential trade war over the carbon scheme, which forces all flights to and from EU airports to limit carbon dioxide emissions and airlines to cover the cost of emissions over the limit.

IATA foresees, for now, a gain of only 2,600 million for next year, but warning that if the European crisis deepens, the industry would return to the red with losses of 6,200 million.

The aviation industry is very sensitive to macroeconomic shocks. And with the drums playing in Europe recession background, airlines fear that 2012 will be even worse this year by the collapse of demand in one of the most important regions for the proper conduct of global aviation. If Europe falls, the airlines will go back.

The International Air Transport Association (IATA) has decided to revise down its estimate for next year, lowering the profit forecast to 3,500 million dollars (about 2,600 million Euros) contrary to the 4,900 million promised so far. If confirmed, these new forecasts, the global airline industry profits plunge 50% in 2012, compared to the 6,900 million dollars that the employer estimates for this year.

Get in the worst

However, the worst may be yet to come. And it warns that IATA airlines may even return to the red if confirmed the worst-case scenario. If the EU economy in recession and financial system problems are exacerbated, global aviation could accumulate losses of 8,300 million dollars (about 6,200 million) next year.

If in the last months the main fears of the sector was the high price of oil, it now appears that the concern focuses on the evolution of the European economy and its impact on ...