US Airways Group - At the Back of the Pack Essay

US Airways Group - At the abide of the Pack - Essay ExampleEver since the pains was deregulated in 1978 intense competition and price gauging has do profitability increasingly difficult for the flight path industry in oecumenical. After the stock market dart of 2008 and the economic recession that followed coupled with ascension slope fuel costs were the direct cause of several airlines having to file cabi force out for bankruptcy protection (Plunkett Research, 2010). The airline companies that survived the onslaught were presented with a volatile and fluctuating operating(a) environment of rising fuel and energy costs, coupled with a decreased demand for passenger travel in ecumenic and negative impact on revenues mainly as a direct result of the economic downturn. The rising costs have cut the margins in the industry so much that current the average net margin in the airline industry is two percent. The stay of 2008 and 2009 remained a very ch solelyenging period for al l the airlines with most of them struggling to remain profitable. For 2010 with the slow economic recovery businesses as well as private travel has increased significantly in volume, so occupancy rates in general for the airline industry have been full. When airlines are able to fill the lay of their airplanes to full capacity the attach to is optimizing the productivity of the operation. When the latter occurs and companies have idle capacity issues airlines have to take drastic measures to fill those seats which includes price deductions to spur the demand for air travel. After the previous years of consecutive losses the airline industry in general returned to profitability. U.S. Airways just like any other domestic airline is unresolved to a complicated array of laws and regulations that limit their operations as well dramatically increasing their operating costs. With the advent of the Aviation and Transportation security Act of 2001 which mandated the standardization and f ederalization of airport security and mandated extra security procedures which increased operational costs tremendously airlines had to absorb the costs and imposed a per passenger tax on ticket sales in order to fund the additional security measures. The federal Aviation Administration is the federal agency responsible for regulating the airline industry operations, procedures and their operational safety, including aircraft maintenance. The FAA give regularly issue new directives and changes in maintenance schedules and procedures which create mandated operational costs that are also a factor in increasing airline operational expenses. Other proposals to address airport over-crowding in certain airports in the U.S. involve increasing pricing to take into account congestion or placing a tax on certain particularly congested airports. This could potentially affect the airline industry in the near future by further increasing the costs of passengers to travel if these changes or suggestions are placed into law (Datamonitor, 2010). Further regulations and government legislation concerning pollution, climate change and aircraft emissions also post a significant operational threat to the airline industry as a whole. In the list of risk 1,000 Most admired companies 2006, U.S. Airways Group was consistently ranked lowest in all the eight divulge attributes that were taken into account. U.S. Airways Group achieved an overall score of 3.25 placing it as the least admired airline out of all the major competitors. For this survey U.S. Airways was ranked last in the industry in four of the eight