Business

About a falling rate of flights
by Martina Harvanova

Two of the leading airplane producers Airbus and Boeing are swamped, as the latest reports claim. Although both of them are facing minute problems, their position in the business isn´t the same. The U.S. plane maker outpaced Europe´s Airbus last year. The difference in orders isn´t any massive, in spite of that, Boeing attracts still more buyers than the other one. The year 2007 was called as staggering, but this year analysts from both companies predict a decline in new-aircraft orders. The major question that is obliged to solve is how they manage the backlog which is being reported. Although it may seem that such a business occurs on its smooth way due to the growth of people traveling, this apparent fact isn´t right at all. What are the causes that contribute to such a situation? The people´s mobility is gradually altering. Two decades ago the condition looked like we are traveling more, whether to a vacation, visits or to the work that has become quite a popular trend. 9/11 changed a lot of things, among all also our mobility. Those of us who were terrified of traveling by plane got even more trembling just when considering this means of transport. That is why the rate of flights has declined. However, that is not the only thing causing difficulties in Airbus and Boeing. Soaring oil prices, infirm economic situation and a global credit squeeze are the measures for that. Also health scares of SARS or other world-widely spread threats dropped the passenger figures. Steps that can potentially improve a demand for planes are Asian carriers. As the Airbus CEO Thomas Enders expects,"demand to continue to be strong in 2008, though not at the level of 2007," the producers should focus on Asian market and its buyers. Although Airbus and Boeing assume the year 2008 to be "a normal year" from a point of number of orders, the notice by itself gives some indication about the trend. Slowly but surely the volume of flights will sink. And results for that, mainly a danger of various threats will be. Threats of illnesses, attacks, disasters.

related story: http://news.yahoo.com/s/ap/20080116/ap_on_bi_ge/aircraft_orders;_ylt=Ap8egdTwsC6qNjbhtlYsMoes0NUE

by Martina Harvanova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 12:10 PM