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Sunday, 7 August 2011

AVIATION TODAY

Airlines are in difficult straits today because they have to invest substantial capital, which the banks are not willing to hand over due to the economic crisis, in new and still larger aircraft, without enjoying adequate passengers reservations to fill the seats on the new planes; This again because of the halting world economy. Also, the progressive increase in maintenance costs and the ever increasing price of fuel are not met by a comparable increase in turnover or in air fares. The ever growing competition among  airlines and the so called low fare air lines are also contributing to the problem.The market is dangerously saturated with aircraft which nobody really needs at this moment of crisis. In the aviation industry during the last few years names of well known and seemingly solid airlines have disappeared from the sky. TWA, PanAm, SABENA, Swissair, Eastern Airlines, UTA, just to name a few. Other airline companies were forced to merge with others, Like the KLM or Iberia.

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