Airline industry suffers another blow

The ongoing impact of the worldwide recession is being felt in the air industry with private jet company Air Partner forced to place its PJ Operating Company into administration due to a large drop-off in demand. This is yet the latest piece of negative news for the airline industry which has been suffering from a number of factors which include high fuel prices, lower passenger numbers and an ever increasing tax burden from governments around the world.

Slowly but surely we are seeing more and more airline companies struggling to survive and indeed a number have already been placed in administration and others are sure to follow in the short to medium term. After a boom time over the last 20 years, especially in the budget airline industry, we are seeing a major scaling down of the industry as a whole with a number of mergers and acquisitions also expected in the short to medium term.

British Airways is struggling with an ongoing union dispute which threatens to ground hundreds of thousands of UK passengers over the Easter period and beyond. The British Airways strike is also turning into something of a political hot potato due to the close relationship between the Labour Party and the Unite union.