Rising fuel costs have not only provided long-lasting headaches for travellers worldwide, but also for the airlines carrying them. Earlier this year Singapore Airlines abandoned the longest non-stop flight (at 19 hours) as rising fuel costs depleted the trips profits. But what has been a bad experience for airlines and passengers alike has provided manufacturers with a booming demand.
The ever-increasing price for fuel has spurred airlines to invest in shinier, more efficient planes. Manufacturing giants such as Boeing and Airbus will not disappoint, with Boeing boasting a plane capable of reducing fuel burn by 20% and maintenance costs by 30%. In response to the fuel costs, demand will increase unwaveringly. Regardless of the multi-million dollar price tag for a single jet, North America alone is projected to purchase over 7,000 planes over the next 8 years in an attempt to chase profitability.
The area of great interest is the growing capability of change among the manufacturers. Undoubtedly, demand for petrolium will provide a constant force for innovation; how extreme will the changes become? What does the future of air travel hold for both manufacturers and airlines?
What do you think?
Web References: http://www2.macleans.ca/2012/11/13/airliner-arms-race/#more-312494
http://www.businessweek.com/articles/2012-04-02/forget-gas-prices-air-fares-are-getting-more-painful