US Aviation Industry (USA Aviation Sector)
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The present situation of the aviation industry of US has shown some prospects. The demand for low cost air carriers have showcased a steady increase in recent times, both in passenger and cargo transportation.
US Aviation Industry Trends
The present situation of the aviation industry of US has shown some prospects. The demand for low cost air carriers have showcased a steady increase in recent times, both in passenger and cargo transportation.
US Aviation Industry Trends
US aviation industry has witnessed various phases of ups and downs in its past. The commercial aviation industry of US faced a serious deterioration after the September 11, 2001, attacks on the World Trade Center and the Pentagon. The operating losses of the six major US network carriers amounted to $19.1 billion in 2001-2002. However, the financial and other support provided by the US governments helped the network carriers in overcoming those turbulent times. Later, the increase in fuel prices at exorbitant rates since 2007 has also affected the development of the aviation industry of US.
Major airlines have already implemented cut capacity to increase profits. There are certain major airlines that are also following suit. Moreover, the Open Skies agreement between European Union and USA has also increased the scope of the commercial aviation industry of US. Delta Airlines, Continental Airlines and Northwest Airlines have already begun operating flights between USA and EU countries.
Defense Sector in US Aviation Industry
Defense sector is a significant part of industry along with commercial aviation industry. Hindrances to commercial aviation industry have not affected this sector much. Northrop Grumman, one of the major players in defense aviation industry, has achieved the status of being the co-winner of an important Air Force contract. Its shares have rocketed to 72% in the last five years. Boeing, another major firm, has also experienced progress with $1.2 billion US profit on $16 billion in revenues achieved during the first quarter of 2008.
Suppliers in US Aviation Industry
A prominent sub-sector of the US aviation industry is the suppliers. Chief manufacturers of components for US aviation industry are Precision Castparts and Ducommun. The financial condition of these firms have shown considerable progress in recent years. The profit margins of Precision Castparts and Ducommun in first quarter of 2008 were 14.85% and 5.32% respectively.
US Aviation Industry Research
The research for alternative fuel resources program, Commercial Aviation Alternative Fuels Initiative, has been undertaken by Federal Aviation Administration and numerous trade groups to overcome the challenge of price hike of fuel. Two companies, Honeywell and General Electric, are working on the project of developing biofuel alternatives for jet engines.
