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In New York Times, Business Day article dated October 18, 2011 Jad Mouawad who is the author of this paper puts more emphasis on the hikes in flight charges and battles for profits among competing airlines. He explains various measures that airlines are taking in order to address the issue of high operational costs as a result of inflation and high fuel prices globally. The author of this paper criticizes the initiatives taken by airline companies in trying to reduce their operational costs. For instance, he explains how some companies have reduced some of their services in order to reduce costs. Also, the author explains how various airline companies merger with other companies so as to be competitive and profitable in the market.
Although the airline companies have hiked their flight fares, the author should also consider that airline companies have increased their flight fares not only to gain profits, but also to reduce their costs of operation due to high inflation rates and increase in fuel prices in the global market. This is because, like other businesses, airline companies cannot operate by making losses, but rather they must put up effective mechanisms that ensure their survival in the market. For instance, airline companies may be forced to hikes the flight charges in order to cater for all costs incurred such as payment of debts as well as salary increment for its employees due to high inflation rates.
Furthermore, the author should consider that the companies’ initiative to withdraw some services such as free meals can be one of the most effective way of reducing operational costs rather than imposing additional increment of flight charges. This is because if airline companies decide to offer such services, flight charges may be further increased. Additionally, the author should also consider the fact that the companies’ initiative to the merger is not only to obtain profits, but also to improve service delivery to all passengers.
In conclusion, although the flight charges charged might be high, the author should not only consider the burden subjected to the passengers due to increase in flight charges, but he should also consider the companies’ survival. This is because these companies cannot survive if they are unable to pay for their costs of operations and debts. This means that these companies cannot run under loss because this may lead to closure.