Aer Lingus and the Airline Industry

An overview of the status of the airline industry since 9/11, with a focus on the Irish airline, Aer Lingus.

This paper examines how the airline industry is feeling several pressures, some having to do with the events in New York City on September 11, 2001, and some having to do with the sluggish global economy. It looks at how the U.S. sector of the global industry is suffering some effects of the war in Iraq and how the U.S. airline industry continues to struggle with some relatively persistent problems, such as patchwork regulation and labor disputes. It also explores how the emergence of the European Commission as a controlling force in the airline industry has caused problems for some airlines there in terms of regulatory issues. In particular, it attempts to show how Aer Lingus seems to have discovered a way to rise from the ashes of its own former management and the global situation.

Outline
Introduction
Aer Lingus (Irish Airlines)
Background
Aer Lingus Turnaround Plan
The End Result
Global Status of the Airline Industry
Europe
The United States of Europe
The United States
Other Industry Factors
Airplane Manufacturers
Petroleum
Labor
Conclusion
“In addition to the events of 9/11, the U.S. airline industry was already blaming its problems on deregulation, which they claimed made problems for operations, but also for passengers. Before 1979, the Civil Aeronautics Board (CAB) controlled which routes airlines flew and what ticket prices they could charge. The intention was to serve the public interest. Deregulation threw the U.S. airline industry, without benefit of government supports as much of its European counterpart enjoyed at the time, into a Darwinian “survival of the fittest” mode. In addition, the U.S. Department of Transportation (DOD) also permitted any airline that met minimal standards to fly on any domestic route. (Gowrisankaran, 2002)”

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