Economic Indicators Paper
Airline Industry Economics is explained as the social science that studies the production, distribution and consumption of goods and services. As a guideline for economics, the used of economic indicators are used as a means of predicting or making a forecast about the economy and the different factors that affect those forecast. The purpose of this paper is to identify how the certain economic indicators affect the industry domestically and internationally. The economic indicators to be discussed are the unemployment rate, Gross Domestic Product (GDP), interest rates, inflation rates, Producer Price Index (PPI), and oil and fuel prices. Over the past few years this industry has been significantly affected by such events as the September 11, 2001 terrorist bombing, the high and escalating prices of fuel and the shortage caused by Hurricane Katrina in August 2005. These events were world shaking events and in relations to the micro and macro economics presented a ripple effect that to this day is still being felt. The Airline industry was hit worldwide with massive events that affected all economic indicators and almost destroyed the businesses. In the beginning years of economic studies, it was previously thought that economic problems were only caused by non-economic events that only affected the things in that arena. However, with the introduction of Keynesian economic theory, of "everything at once", economist and society began to view that with one change, all things were affected. All businesses began seeing that the market held a variety of interest and the interest in one could drastically affect the interest of another. The government and its economic policies also contributed to how the airlines business either improved or fell. Teams A 's analysis of these factors will attempt to show all these factors and how the future of this industry can be predicted from the factors. The airline industry is a unique one when it comes to
References: Colander, David C. (2004).Macroeconomics (5th ed.). Burr Ridge, IL: Irwin/McGraw- Hill https://ecampus.phoenix.edu/ secure/resource/resource.asp Consumeraffairs.com, (2008) Inflationratedata.com, (2008). 2000-present consumer price index-all urban consumers. Retrieved October 23, 2008 from http://inflationdata.com/Inflation/Consumer_Price_Index/CurrentCPI.asp International Air Transport Association Passenger and Freight Forecasts 2006-2010. Retrieved February 10, 2007 from http://www.iata.org/NR/rdonlyres/D4F7A43D-DE5B-4FFF-BE72-16731F286402/0/traffic_forecast_2006_2010.pdf Landrum & Brown; SH&E 2001. Retrieved February 10, 2007 from http://www.burbankpart161.org/forecast/FR_5- 1C4.pdf RITA, (2008, July 23). Average first-quarter domestic air fares roses 4.4 percent from 2007. Bureau of Transportation Statistics. Retrieved October 22, 2008 from http://www.bts.gov/press_releases/2008/bts036_08/html/bts036_08.html Russell, Michael rate-guides.com Retrieved online February 10, 2007, from http://interest-rate-guides.com/a/340082/Monetary+Policy+and+Interest+Rates.html Simon, J. & Toscano, R., (2008, August 15). The impact of negative real interest rates. Retrieved October 20, 2008 from http://www.safehaven.com/article-10997.htm Smith, A The Financial Forecast Center. 2008 Prime Interest Rate Forecast. Forecast.org Retrieved October 23, 2008, from http://forecasts.org/prime.htm