Airline Fiscal Analysis
Introduction
Today's airlines face many new problems. The historical tends show the true story of what is happening in the airline industry. Personal income, discount rates, increase in fuel rates, just to name a few, are taking their toll on the industry. The charts included take a more pictorial view of exactly what is happening and what things are changing. People are driving shorter distances and companies are using video conferencing and new technologies to avoid much of the business travel that has been a stable of the airline industry. This analysis will give a better overall view of these changes.
Personal Income ? Historical trend
Define personal income, and how one's income can affect the historical trend in the airline industry. Personal income is defined by the United States' Bureau of Economic Analysis as income received by persons from all sources. It includes income received from participation in production as well as from government and business transfer payments. It is the sum of compensation of employees (received), supplements to wages and salaries, proprietors' income with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj), rental income of persons with CCAdj, personal income receipts on assets, and personal current transfer receipts, less contributions for government social insurance. (Wikipedia 2006)
A person's income can affect the airline industry and the trend that can show if the next year will be a slowdown in the industry or will the airline be on an upward slope. A CRS report stated that when there is an increase in energy prices, particularly with gasoline and heating oil this could negatively affect tourism. Other things being equal, the ...