Interesting Facts About Cheap International Airlines

Regardless of the host of amenities and facilities provided in air travel, this fact that aviation is a service industry cannot be forgotten. The air travel industry, both - domestic and international, has undergone a significant ascent in the last decade or so. More and more people are opting for aerial experience of travel and tourism. The global air passenger traffic has shown a considerable rise with almost all parts of the world reporting a comparative upsurge, according to a study. Emerging aviation markets have recorded progressive results while stable areas have reported a modest boost. With more and more cheap international airlines expanding their network and offering wide connectivity, the influx of people opting for air travel has bolstered the aviation market heavily. However, the profit margin for international carriers is still low due to common reasons, which many industries face. Extensive Capital Investment An aviation company requires extensive capital investment and a lot of money is involved in the maintenance of the fleet. There are multiple facets involved in the operation of an air service providing organisation. From the construction of large hangars and purchasing tested aircraft to updating technology on a regular basis and buying the latest equipment, all this involves heavy investment of resources. In the case of international carriers, the amount increases even more. Thus, the margin between the amount invested and revenue earned is generally not too much. Moreover, the investment is usually done from sanctioned loans, which have to be paid back within a limited period of time. Maintenance of a Large Fleet It is crucial to check the functioning and safety prospects of each model before it takes off every time. This involves manpower and capital investment. Modern equipment and latest technology, which are significantly expensive, are required for this testing. Moreover, cross-continental carriers have a huge fleet size and they have to maintain proper cash flow to preserve the existing fleet and buy new models. All this involves large amount of money and other resources. In fact, many bigger aviation companies lease their models to smaller ones so that they can maintain sufficient cash flow. Heavy Manpower Costs Maintaining latest technology and modern equipment is not the only point of heavy expenditure for carriers. Each aircraft necessarily requires a number of security personnel, pilots, gate agents, flight attendants, mechanics and baggage handlers to count the minimum. Although digitization has reduced the requisite of manpower up to some extent, however, operation of flights involves sizeable human resources. International aviation companies, which operate aircraft over long distances, need extensive manpower, and this involves a substantial amount of money. Besides, those who opt for flight plus hotel packages seek comprehensive services like ground assistance and airport transfer. There are several other factors, which contribute to the ever-increasing expenses of airlines. Some such facets are sudden hike in fuel prices and imposition of heavy taxes by the government. However, with a steep rise in traffic in popular routes. It is being predicted that the profit margin of international carriers might improve in the coming years. Instead of searching of cheap international airlines you can get cheap international tickets even at popular airlines if you will book your tickets in advance or choose flight plus hotel packages where you can save money. Article Source: http://EzineArticles.com/8601177