An Overview of the Airline Industry

An Overview of the Airline Industry

Airline Industries flourished with the need for transporting people and goods quickly from one place to another in a short period of time.

When someone says “Airlines”, most of us picture a serene setting where an aircraft flies amongst the clouds and into holiday land, thanks to the numerous ads we see.

Co-incidentally, “holiday” season might also be the time when you hear stuff like “overbooked flights”, and search for airlines that don’t charge any baggage fees.

Why are these terms important and how does the airline industry work?

Airlines earn their revenue from the tickets they sell. A small portion goes into the Airline’s pocket and the rest goes towards fuel, food, maintenance, taxes, customs clearances, and other nitty-gritty expenses that keep an Airline functioning like a well-oiled machine. Airlines even have to pay airports to land and take-off from the runway.

A rough calculation of estimated costs, fluctuation of prices, evaluation of economic situations all around the world and profits made will show that the Airline industry’s profit is subject to wild fluctuations.

If that’s not enough fluctuation, some of the passengers might not turn up since their flights can be re-scheduled without any loss or they might avail a cancellation that offers a partial refund on their ticket.

Either way, this could mean a loss for the Airlines. So, Airlines tend to overbook their flights. This means that there is more than one person booked for the same seat. This is so that airlines end up filling all of their seats for every trip their flights make.

Although this doesn’t sound right, Airlines can usually predict how many will turn up for a flight with astonishing accuracy.

It’s only sometimes that everyone who’s booked a seat turns up and if you’re one of those unfortunate people who are on an overbooked flight, you might get bumped to another the plane.

In such a situation, don’t forget to ask for fair compensation. The compensation increases with your waiting time so you might as well make full use of your inconvenience.

Even if you do end up getting bumped to another flight, the experience itself is not a pleasant one. So, airlines these days are coming up with more efficient methods to warn passengers about a potential overbooking.

However, if you’re going to book a chartered flight or a tour package, then the chance of getting overbooked on such flights is very less because most of them offer round-trip and holiday packages.

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