Operating environment of Airline Fleet Planning

            The aviation industry is heavily affected by the changing environmental conditions.  The economic standpoint of countries and the global economic dynamic position affect the operation variables of airlines. Changes in global economic attributes bring about changes in fuel prices and a reduction in the disposable incomes available for customers to use.  This period of economic depression drives revenues down. Profitability of individual airlines thus fluctuates depending on the economic position [2].  The political environment also affects the operations of the airlines. During times of political instability, spending on business tours and leisure diminishes significantly.  Regulatory attributes also reduce the revenue attained by the airlines since costs are incurred in complying with certain legal aspects. Regulatory activities may also have negative effects on airline operations. Regulatory activities, which raise barriers to trade, will have a negative impact on trade and hence, on traffic.  External factors such as weather affect the operations of airlines. Natural disasters, pandemics and unforeseen factors which are out control of airlines limits mobility of people and goods, hence reduced revenues.

References of Airline Fleet Planning