Airlines In Crisis

1
Airlines In Crisis

• From Bad to Worse
• Wayne B. Cobb II
• PIA 2008
• 10/10/01

2
Issue at Hand

• What happened?
• September 11th tragedy
• Who has been affected?
• Airline Industry
• Alternative methods of transportation

3
Recent Industry History

• Binge - Purge Cycles
• Prosperous Times
• Increased Prices
• Accumulation of Debt
• Corporate Cutbacks
• Variable Expense

4
Pre / Post - Tragedy

• Financial Stability
• Workforce Reduction
• Reduced Flight
• Expensive Flights

5
Whats Happened Economically?

• MB lt MC
• Unprofitable Earning
• Inefficient Production
• Production Possibility Curve
• Global Recession
• Government Intervention

6
Government Subsidy

• Taxpayer Money
• Market Breakdown
• Problems
• Short Term
• Long Term

7
Solutions

• Previous Examples
• Chrysler
• Air Transportation Stabilization Board
• Disbursement
• Requirements
• Rebounding
• Future years

8
Conclusion

• Government Subsidy
• Affordable and Fair?