Answer:
Factors affecting commercial transport sales
- • Economic growth: broadly influence demand for air transport because more people and business travel
- • Inflation: high inflation hinder investment and financing, as well as economic growth. Airlines facing higher cost and have to increase fare
- • Fleet capacity: Passenger load factor keeps a constant level after a period of decline in the early 2000s
- • Replacement Aircraft: Airlines have to replace their old aircrafts and upgrade to better ones periodically.
- • Airline profitability: in order to rasie capital, airlines needs to prove investors that they are profitable.
- • A cyclical industry: civil aviation market are generating in cycles of peaking and declining. Because aircraft are expensive to build, they are only made after the order is placed, which create a lag
time. → aircrafts and airlines can miss a market peak time due to manufacturing lag time
- • Future trend in air transport: Transport deliveries are rising in the future as international economy grow.