2. Acknowledgment
I am very thankful to my aviation faculty Mrs. Jyothi
Thomas for her guidance and my family and friends for
their support. And god for giving me this opportunity.
3. Introduction
A year ago, the world was in the phase of prosperity and this phase
is characterised by high economic activities and increasing
production, employment, profit, national income, investment,
wages and volume of bank credit. But now, everything is changed
and the world is facing recession. Recession is a general slowdown
in economic activity for a sustained period of time. So, let's see how
recession effected the economy, aviation sector and passengers.
5. Analysis of previous assignment
Current scenario of aviation industry.
How to handle emergency situations (medical and
technical).
Responsibilities of a cabin crew.
Special Handling Passengers.
Emergency equipments and their usage.
Gained knowledge about aome aircrafts.
6. Research proposal and Hypothesis
Some related questions
What is recession?
How does it affect the economy?
How does it affect aviation sector?
What is cost cutting?
How does it affect the passengers?
Hypothesis:- If we take sever measures
against recession, then it could be reduced.
7. Justification
The Global economy is facing the situation of recession.
There is slump in market, the stock market is falling and
unemployment is increasing. Aviation sector is also hit by
recession, and the question which came to everyone's mind
was,
"Does recession affects the passengers?"
I was eager to know, that if yes then how, and that's why
I chose this topic for my research prject.
8. Action plan with target dates
Project described by faculty on April 19, 2013
Topic decided on April 20, 2013
Information collected between 21st to 24th of april 2013
Started literally on 25th April 2013
"Work in progress" from 12 to 15 days
First review on 13th April 2013
Submission on 13th April 2013
9. Code of Ethics
The content of the project should be based on proper
findings.
Completion of the project in the alloted time.
Do not fabricate, falsify, or misrepresent data.
Will monitor the progress of the project.
Always stick to the code of ethics.
10. Primary and secondary source
Primary Source
Faculty guidance
Retired persons
Secondary source
Internet
Aviation module provided by Frankfinn
Magazines
11. Analysis of sources used
How primary sources helped me?
They helped me in sorting data and also gave tips which were
very useful for my assignment, Gave me informations and
knowledge and shared their experience.
How secondary source helped me?
It helped me to find the data required for the assignment and
gave me useful and reliable information.
13. What is recession?
A period of temporary economic decline during which
trade and industrial activity are reduced, generally
identified by a fall in GDP, employment, investment
spending, capacity utilisation, household incomes and
business profits.
OR
In economics, Recession is a general slowdown in
economic activity over a sustained period of time.
15. Slump in the market
Consumer lack the
necessary money due to
unemployment and cannot
buy goods available in the
market.
Goods and services are
difficult to be sold as the
purchasing power of the
people comes down.
16. Stock Prices comes down
The industrial production is
badly affected as investors
avoid investing in
companies that might suffer
losses during recession.
Bigger companies are able
to withstand the setbacks
but smaller companies have
a tough time and some may
end up closing down.
17. Increase in Unemployment
People are thrown out
of jobs.
They are left in the
lurch.
Many goods and
services are not within
their reach.
18. National debts on the rise
Increase in National money means less money can be spent by
the government on development. Money gets diverted in
bailing out companies.
19. Bankruptcies
It is a legally declared
inability or impairment of
ability of an individual or
organization to pay its
creditors.
21. Aviation sector affected by recession
Aviation turbine fuel prices increasing.
Prices of air tickets are rising.
Mergers and Acquisitions.
Sacking of Employees.
Cancellation of flights on some routes.
Decline in the rate of people travelling by air.
Many cost cutting measures are taken by airline.
Many airlines are facing losses and some stopped their services.
22. What is cost cutting?
Cost cutting refers to the reduction of
the amount of money spent on the
operations of an organization or on the
provision of products and services.
Cost cutting measures such as budget
reduction, salary freezes and staff
redundancies may be taken by an
organization at a time of recession or
financial difficulty or in situations
where ineffiency has been identified.
24. Poor customer service
Due to cost cutting measures
undertaken by the airlines
like sacking of employees,
and so the left employees will
be over worked because of
which the passengers will be
at loss as they will not get a
proper customer service as
there were lack of employees.
25. Over weight passengers at loss
They could be at loss as
these passengers might be
charged as per rates two
seats in few international
flights.
26. Charged for using the lavatory
As part of cost cutting efforts
by some airlines, the
passengers may soon be
charged for using things
which were not charged
earlier, like lavatory.
27. Other means of transportation
If prices are hiked,then
people would prefer other
means of transportation like
train,bus or engage a car
rental.
28. Life at risk
Cutting cost may also
sometimes put the passengers
lives at risk as the low man
power in the maintenance
department may lead to
overworking of available
employees resulting in faulty
maintenance.
29. Extra charge on preference
Civil Aviation Ministry
allowed airlines to charge
extra money from
passengers for preferred
seats,check-in baggage and
meals,among other things.
30. Low Cost Airlines
As per cost cutting measures,many low cost airlines are
introduced and on work today as this is the time which
favors those company
People prefer this because this is cheaper.
32. Do not worry or panic.
Don't spread negative thoughts on your share holders and employees.
Do not publicize your cost cutting methods.
Gain the trust of employees and share holders.
Increase marketing tactics.
Get new customers to sustain your business.
Understand that this is a fight against the crisis. Infuse this thought in
others as well.
Stay away from things that fill us with negativism.
Do not run away.
33. Think a lot about future prosperity.
Understand that in any dire situation there is an opportunity.
Fix your target.
Make your "Mission" and "Vision" clearer. Convey it to your
employees.
Publish motivating articles and stories on your company
newsletter/magazine.
Uphold your company achievements.
Make of core team of similar thinkers.
Improve human productivity.
34. Even your managers need training.
Have a clear idea of what you want from your business as well as
your life.
Find a mentor or a coach.
Read books that inspire you.
Remember that for every fall there will be a rise.
Find out ways to cut cost.
Reorganize your thoughts for success.Find time for meditation
and creative thinking.
Expand your operating areas.
35. Summary
Yes, Recession does affect the passengers.
The Global economy is facing the situation of recession
and aviation sectr is not indifferent to it.
The airlines are finding new ways to cutting the cost.
Though, now we are trying to climb out of this downturn.
36. Conclusion
I conclude by saying that this assignment was a great
learning experience for me which will definitely help in
upcoming years.
38. If I get a chance to do research
again,
I would like to research on Air Travel and my hypothesis
would be "Should people prefer Air Travel?"
I would like to research on Travel, Effects of Tourism
and my hypothesis would be "Is Travel harmful to
health?"
I would like to research on Hospitality, Seven star hotels
and my hypothesis would be "Does Seven Star
Hotels really exists?"
39. Bibliography
Times of India
Aviation times
wikipedia.org
answers.yahoo.com
airliners.net
businesstraveller.com
aviating india.wordpress.com
40. My Experience
This assignment was a very great source of knowledge for
me.
From the assignment I came to know the meaning of
recession and cost cutting.
I also came to know that how the economy and aviation
sector is affected by recession.
I got to know how recession is affecting the passengers
also.