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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: elmatador who wrote (917)7/30/2018 2:14:46 PM
From: Elroy Jetson1 Recommendation

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elmatador

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Fuel cost, the largest cost in transport, has been the biggest cost reduction in air transport. Aircraft now use less than half the fuel per passenger mile than they used in the 1950s. This is mostly due to increased engine efficiency with the rest coming from reduced air-frame weight and improved aerodynamics. - theicct.org

In the process, the number of passenger flights has increased dramatically, which combined with computerization, has created huge economies of scale which weren't possible before. Regulated prices went away when the airline industry no longer needed it. Deregulation temporarily worsened safety, but improved design and regulated maintenance practices have also made air travel exponentially safer than when I flew 2 or 3 times a day for business.



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