AcknowledgmentI am very thankful to my aviation faculty Mrs. JyothiThomas for her guidance and my family and friends fortheir support. And god for giving me this opportunity.
IntroductionA year ago, the world was in the phase of prosperity and this phaseis characterised by high economic activities and increasingproduction, employment, profit, national income, investment,wages and volume of bank credit. But now, everything is changedand the world is facing recession. Recession is a general slowdownin economic activity for a sustained period of time. So, lets see howrecession effected the economy, aviation sector and passengers.
Analysis of previous assignment Current scenario of aviation industry. How to handle emergency situations (medical andtechnical). Responsibilities of a cabin crew. Special Handling Passengers. Emergency equipments and their usage. Gained knowledge about aome aircrafts.
Research proposal and Hypothesis Some related questions What is recession? How does it affect the economy? How does it affect aviation sector? What is cost cutting? How does it affect the passengers? Hypothesis:- If we take sever measuresagainst recession, then it could be reduced.
JustificationThe Global economy is facing the situation of recession.There is slump in market, the stock market is falling andunemployment is increasing. Aviation sector is also hit byrecession, and the question which came to everyones mindwas,"Does recession affects the passengers?"I was eager to know, that if yes then how, and thats whyI chose this topic for my research prject.
Action plan with target dates Project described by faculty on April 19, 2013 Topic decided on April 20, 2013 Information collected between 21st to 24th of april 2013 Started literally on 25th April 2013 "Work in progress" from 12 to 15 days First review on 13th April 2013 Submission on 13th April 2013
Code of Ethics The content of the project should be based on properfindings. Completion of the project in the alloted time. Do not fabricate, falsify, or misrepresent data. Will monitor the progress of the project. Always stick to the code of ethics.
Primary and secondary source Primary Source Faculty guidance Retired persons Secondary source Internet Aviation module provided by Frankfinn Magazines
Analysis of sources used How primary sources helped me?They helped me in sorting data and also gave tips which werevery useful for my assignment, Gave me informations andknowledge and shared their experience. How secondary source helped me?It helped me to find the data required for the assignment andgave me useful and reliable information.
Analysis and presentationAnalysis and presentationof my findingsof my findings
What is recession? A period of temporary economic decline during whichtrade and industrial activity are reduced, generallyidentified by a fall in GDP, employment, investmentspending, capacity utilisation, household incomes andbusiness profits.OR In economics, Recession is a general slowdown ineconomic activity over a sustained period of time.
Slump in the market Consumer lack thenecessary money due tounemployment and cannotbuy goods available in themarket. Goods and services aredifficult to be sold as thepurchasing power of thepeople comes down.
Stock Prices comes down The industrial production isbadly affected as investorsavoid investing incompanies that might sufferlosses during recession. Bigger companies are ableto withstand the setbacksbut smaller companies havea tough time and some mayend up closing down.
Increase in Unemployment People are thrown outof jobs. They are left in thelurch. Many goods andservices are not withintheir reach.
National debts on the rise Increase in National money means less money can be spent bythe government on development. Money gets diverted inbailing out companies.
Bankruptcies It is a legally declaredinability or impairment ofability of an individual ororganization to pay itscreditors.
Aviation sector affected by recession Aviation turbine fuel prices increasing. Prices of air tickets are rising. Mergers and Acquisitions. Sacking of Employees. Cancellation of flights on some routes. Decline in the rate of people travelling by air. Many cost cutting measures are taken by airline. Many airlines are facing losses and some stopped their services.
What is cost cutting? Cost cutting refers to the reduction ofthe amount of money spent on theoperations of an organization or on theprovision of products and services. Cost cutting measures such as budgetreduction, salary freezes and staffredundancies may be taken by anorganization at a time of recession orfinancial difficulty or in situationswhere ineffiency has been identified.
Poor customer service Due to cost cutting measuresundertaken by the airlineslike sacking of employees,and so the left employees willbe over worked because ofwhich the passengers will beat loss as they will not get aproper customer service asthere were lack of employees.
Over weight passengers at loss They could be at loss asthese passengers might becharged as per rates twoseats in few internationalflights.
Charged for using the lavatory As part of cost cutting effortsby some airlines, thepassengers may soon becharged for using thingswhich were not chargedearlier, like lavatory.
Other means of transportation If prices are hiked,thenpeople would prefer othermeans of transportation liketrain,bus or engage a carrental.
Life at risk Cutting cost may alsosometimes put the passengerslives at risk as the low manpower in the maintenancedepartment may lead tooverworking of availableemployees resulting in faultymaintenance.
Extra charge on preference Civil Aviation Ministryallowed airlines to chargeextra money frompassengers for preferredseats,check-in baggage andmeals,among other things.
Low Cost Airlines As per cost cutting measures,many low cost airlines areintroduced and on work today as this is the time whichfavors those company People prefer this because this is cheaper.
Do not worry or panic. Dont spread negative thoughts on your share holders and employees. Do not publicize your cost cutting methods. Gain the trust of employees and share holders. Increase marketing tactics. Get new customers to sustain your business. Understand that this is a fight against the crisis. Infuse this thought inothers as well. Stay away from things that fill us with negativism. Do not run away.
Think a lot about future prosperity. Understand that in any dire situation there is an opportunity. Fix your target. Make your "Mission" and "Vision" clearer. Convey it to youremployees. Publish motivating articles and stories on your companynewsletter/magazine. Uphold your company achievements. Make of core team of similar thinkers. Improve human productivity.
Even your managers need training. Have a clear idea of what you want from your business as well asyour life. Find a mentor or a coach. Read books that inspire you. Remember that for every fall there will be a rise. Find out ways to cut cost. Reorganize your thoughts for success.Find time for meditationand creative thinking. Expand your operating areas.
Summary Yes, Recession does affect the passengers. The Global economy is facing the situation of recessionand aviation sectr is not indifferent to it. The airlines are finding new ways to cutting the cost. Though, now we are trying to climb out of this downturn.
ConclusionI conclude by saying that this assignment was a greatlearning experience for me which will definitely help inupcoming years.
If I get a chance to do researchagain, I would like to research on Air Travel and my hypothesiswould be "Should people prefer Air Travel?" I would like to research on Travel, Effects of Tourismand my hypothesis would be "Is Travel harmful tohealth?" I would like to research on Hospitality, Seven star hotelsand my hypothesis would be "Does Seven StarHotels really exists?"
Bibliography Times of India Aviation times wikipedia.org answers.yahoo.com airliners.net businesstraveller.com aviating india.wordpress.com
My Experience This assignment was a very great source of knowledge forme. From the assignment I came to know the meaning ofrecession and cost cutting. I also came to know that how the economy and aviationsector is affected by recession. I got to know how recession is affecting the passengersalso.