Challenges for Airline Industry

Here are some of the challenges that are faced by the airlines industry.:

Global warming is a subject of concern, worldwide. Airplanes are one of the main contributors to carbon discharge in the environment. Airlines industries have to face criticism from environmentalists regarding air pollution, in general. Nowadays, airline and aviation industries are addressing the problem of carbon emission from airplanes, and they are taking measures to control it.

Airlines industries are asked to develop emission-free airplanes in the next fifty years by International Air Transport Association (IATA). Airbus CEO, Gallois suggested aircraft manufacturers to make an effort to devise more environment amiable technology. Also, the European Commission planned a $2.13 billion scheme of the Clean Sky program.

Another challenge of the airline industry is high labor costs. Airlines have to spend 38 percent of their operating costs as labor costs. Most of the employees and passenger safety regulations staff are experts and highly professional. Most of them are also unionized. So it is highly difficult for the airlines to slash their labor budgets.

However, after the 9/11 attack, airlines like US Airways and Continental Airlines have relieved around 20 percent of their employees. Most of the other airlines have followed their steps.

In an effort to slash expenses, many airlines are taking the initiative to outsource their work. Alaska Airlines gave away their baggage handling work to outside contractors. Northwest airline also appointed non-union workers to clean aircrafts. Airlines are taking such measures to tackle with the huge labor costs.

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Challenges for Airline Industry