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Company Profile and Analysis of Northwest Airlines in Regards to Current Political, Economic, Global and Technological Factors Affecting the Airline Industry
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This is a 9 page paper discussing Northwest Airlines in regards to the airline industry and the environmental economic impact on the industry since September 11, 2001 and the recent war in Iraq. Northwest Airlines is the fourth largest airline in the world with over 1,500 daily departures and its effective alliance with KLM Royal Dutch Airlines in Amsterdam adds an incentive for international passengers. The official guidelines and expectations of the company in 1995 included “forward-looking statements” which included the recognition of risks and uncertainties in the airline industry such as war risk coverage and the general economic conditions in the United States. Since the end of the Gulf War in the early 1990s, Northwest and the rest of the airline industry were making a slow recovery and had increased the total aircraft fleet in the industry by 50%. The terrorist attacks of September 11, 2001 however resulted in a loss of over $10 billion and 100,000 positions in the industry. While the government provided financial assistance to airlines in cash and loan guarantees, the same assistance is not guaranteed to the airlines in light of the recent war in Iraq in which Northwest alone has had to decrease its flight schedule by 1,500 departures, its fleet by 20 aircraft and its employees by 4,900 positions. Comparatively however, Northwest has faired well as airlines such as United, U.S. Air and American are either in the process of bankruptcy or are near that financial breaking point. The ongoing growth or recovery of the industry continues to be directly a result of political and global changes in addition to the usual industry factors of competition, customer satisfaction, technological innovations and product scope; all factors which Northwest has taken into account in its maintenance of its high rank in the industry.
Bibliography lists 7 sources.
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Pages:
9
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Filename:D0_TJNWAir1.rtf |
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Paper Title:
Company Profile and Analysis of Northwest Airlines in Regards to Current Political, Economic, Global and Technological Factors Affecting the Airline Industry
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