Currently, the global aviation sector generated revenues of $430 billion, with over 2,076 million passengers traveling by air. According to the US Bureau of Labor Statistics, the airline industry provided employment to around 480,000 people in 2009 in America alone.
Most recently, both United Airlines and US Airways, CEOs stated their desire to merge the two airlines. Now it appears they're sitting down at the table once again to attempt to hash out final agreement. If the merger is completed it would create the nation's 2nd largest airline likely in a stock swap arrangement.
United Chairman and CEO Glenn Tilton and US Airways Chairman and CEO Doug Parker were both involved when their companies talked about combining in 2008. They walked away then citing high fuel prices, but didn't rule out a future deal. That same year, Continental Airlines Inc. rejected United's attempt at a combination.
Spokes people for the airlines report they have already begun laying the foundations of integrating their unionized work forces. It will be one of the most difficult tasks if United Airlines and US Airways got together. But the companies stated they have a plan in the works for dealing with that issue.
Market data shows 2009 air-traffic, combined United-US Airways would approach Delta Air Lines, now the world's largest airline after buying Northwest. It is unclear brand name "United" or "US Airways" would survive given a successful merger.
However, both United and US Airways have been significantly cutting costs to cope with the recession. United cut capacity 7.4 percent last year, while US Airways shrank 4.6 percent. US Airways is cutting most flying that doesn't pass through either Washington or its hubs in Charlotte, N.C., Philadelphia, or Phoenix.
US Airways lost $205 million in 2009, and revenue fell almost 14 percent to $10.46 billion. UAL lost $651 million, while revenue fell 19.1 percent to $16.34 billion.
Airlines Industry Data
Several classes of airlines function in the United States. As of 2008, there were 19 mainline air carriers that use large passenger jets (more than 90 seats); 67 regional carriers that use smaller piston, turboprop, and regional aircraft (up to 90 seats); and 23 all-cargo carriers. In spite of many challenges from security to rising fuel costs, air travel remains one of the most popular modes of transportation in the United States, expanding from 172 million passengers in 1970 to 757 million passengers in 2008, an average growth of 4% per year. See article: NextGen Unmanned Commercial Flights
Traditionally, the European airline giants dominate the aviation industry. British Airways
reported annual revenues of GBP8,593 million in 2008. Lufthansa reported annual revenues of Euro22.4 billion in 2007. Qantas, Australia's largest airline, reported annual revenues of A$12.6 billion for 2007. The other major passenger airlines include Cathay Pacific, the Emirates, US Airways, Japan Airlines, Air France-KLM and Southwest Airlines. Cathay Pacific won the 2009 Airline of the Year title in the famous World Airline Awards, replacing Singapore Airlines as the 'world's best airline.' Among the freight carriers, FedEx is the world's largest, with total revenues of US$ 37.953 billion in 2008.
Some of the major airports across the world include:
New York JFK
Chicago Ohare Intl
Denver Intl
London's Heathrow Airport
Los Angeles International Airport
Hong Kong Intl
Frankfurt International Airport
Tokyo International Airport
Stay tuned as widespread airlines consolidations are appear likely worldwide.
Article Source: http://www.articlesbase.com/international-business-articles/airlines-industry-in-transition-details-2119425.html
About the AuthorBIO: Mr. Rickman is a respected CEO/Developer living in Oregon. For over 30-years, companies large and small have relied on his innovative business development, Internet marketing and sales eCommerce services. He is a published sustainable analyst, ghost-writer columnist and co-author worldwide of several books including Eight Billion People. Mr. Rickman holds advanced business and technical degrees from Boston University. For more information visit: http://www.sustainablevirtualbiz.com or call (503) 621-4953.