The Economic Factors that Help Explainining the Expansion of Low-Cost Research Paper

The Economic Factors that Help Explainining the Expansion of Low-Cost Airline Carriers - Research Paper Example Accessibility of alternative modes of transport that are rationally close substitutes for air transportation diminishes with distance travelled. Globalization and free movement of merchandise and people between and within regions have a positive effect on air travel demand. Business travel market consists of time sensitive passengers; therefore, these customers are price inelastic in terms of fares. If the airline firm offers high quality service to this market segment, such as frequent and reliable frights, flexibility, comfortable seats, and excellent, frequent flyer programme rewards, business class customers will be willing to pay high prices (Junwook, 2011). However, with the introduction of low cost airlines the price elasticity of this business class market has changed and they display price elasticity. In previous years, airline industry relied heavily on business travel market as a major source of profit, however, this trend has changed, and the industry has noted that a hig her percentage of passengers considers price over service. Business class customers are willing to give up luxuries, food quality, flexibility or choice in return to lower prices. According to Rosario & Eddy, 2010, the economy travel market is largely determined by the costs being charged by the airlines; they are price sensitive. The first class air travel market does not generate much profit to the airline industry, as a result, many airlines are moving from three to a two-class cabin. The levels of consumer income influence the passenger’s choice of the air travel class; the choice of consumers with high levels of income will differ with those of consumers with low levels of income (Bijan, & Tom, 2008). The demand for leisure travel is influenced by the number of independent holidays and short term breaks; in this market passengers book flights, accommodation and car by themselves. According to Airport International, the changes in demand of leisure travel indicate that cu stomers are expecting and preferring low fares. Low fares in this market segment are the main stimulus for growth in luxury travel, and passengers are willing to change destination for fabulous deals. According to Susan, 2009, the prices of air tickets are largely influenced by the fuel prices, the exchange rates, and the costs of financing airline projects. High costs of financing, unstable exchange rates, and high fuel prices lead to high air fares. Other natural calamities, such tsunami and earthquakes among others results to decline in tourism and business travels thereby, affecting the air travel demand in the affected areas (Roger, 2008). The following diagrams and tables show the effects of fuel prices on operating costs of the airline industry. Prices of air tickets are determined by the price of fuel; fuel price is influenced by the prevailing economic conditions such as the exchange rates. Industry Fuel Costs and Net Profits. Source: Industry Financial Forecast Table (IATA Economics). Fuel Impact on Operating Costs Year % of Operating Costs Average Price per Barrel of Crude Break-even Price per Barrel Total Fuel Cost 2003 14% $28.8 $23.4 $44 billion 2004 17% $38.3 $34.5 $65 billion 2005 22% $54.5 $51.8 $91 billion 2006 26% $65.1 $68.3 $117 billion 2007 28% $73.0 $82.2 $135 billion 2008 33% $99.0 $88.9 $189 billion 2009 26% $62.0 $55.4 $125 billion 2010 26% $79.4 $91.0

Susan Griffin and her Our Secret Essay Example | Topics and Well Written Essays - 750 words

Susan Griffin and her Our Secret - Essay Example Susan Griffin and her "Our Secret" In the process of writing Our Secret Susan Griffin mixes two different styles. Thus, she resorts to the use of academic and personal writing. All her personal writing is combined with the insertions of scientific information. In fact, the beginning of Our Secret puzzles the readers with unexpected data about the nucleus of the cell: â€Å"The nucleus of the cell derives its name from the Latin nux, meaning nut. Like the stone in a cherry, it is found in the center of the cell, and like this stone, keeps its precious kernel in a shell† (Griffin 335). This information in the beginning of the writing seems to have no sense at first sight; it seems to have no connection with secrets. However, it is not so. The author just uses this phrase to start her research. She does not refer to the writers who give only perfunctory information. Susan Griffin is eager to find out the root of all secrets in her story. That is why she needs to conduct a research and think over the things that ha ve never been considered by other authors. Sometimes it may seem that Susan Griffin uses scientific information in order to compare it to the fates of her characters. That is why she assembles fragments juxtaposes seemingly unrelated material in surprising and suggestive relationships. Each page of Our Secret is broken into italicized inter-sections. In fact, Susan griffin’s prose is applied in order to create a ‘field’ for the bodies set in it. This author seems to create the story under consideration in order to investigate the issues that have interested her. Thus, Griffin’s writing is something like the result of hard intellectual work. It is impossible to conduct a research without the use of certain research methods. What research methods were applied by Susan Griffin, then? Of course, it is observation, comparison and data analysis. In the process of writing the author watches the fates of several characters of Our Secret. They are the following ones: Heinrich, Leo and Laura. All these three characters are unhappy. After observation the author makes an attempt to find out the reason for their misfortune. That is why she looks for facts that may help her by means of science. Sometimes the readers may come across rather odd comparisons. For instance, Griffin tries to find connections between humans to rockets and nucleus cells. The analysis of the data received by Susan Griffin gives her an opportunity to draw certain conclusions; she gets the findings of her thorough research. It turns out that human fate is closely connected with the seed sowed into it. One’s feature is frequently defined by his/her childhood. It is necessary to stress that the characters introduced to the reader had unhappy childhood that influenced their life greatly. Leo and Heinrich’s upbringing are the brightest examples to support this argument. Thus, it is known that Heinrich was deprived of his own childhood too early. This boy became an adult when he was only ten. Then period of c hildish joy was substituted by responsibility and seriousness. He could not enjoy his youth and carelessness just like all other boys did. The only thing he should have done was to obey his father and snitch on all his classmates. This was a