The decreased oil prices stimulation the economy

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Reference no: EM132262672

Airbus covers several factors that affect the demand curve for air travel. One of the leading factors is the decreased oil prices stimulation the economy. The proportion between the growth of air travel and the growth of the economy is emphasized, with an insignificant increase over the past few years. In one of the sections, Airbus stated that demography, connectivity, and economy are three big factors inducing the demand for air travel (Global).

Airbus was always thorough as far as the factors that influence the supply curve in air travel. First, it is predicted that the deliveries of single-aisle aircraft over the next 20 years is expected to reach 70%. This tendency prediction will help form how both airline manufacturers and airlines function and schedule over the years to come. Another factor worth debate is the increase in collaboration of various countries around the world. There have been more than 2,550 air service agreements that have engaged between more than 170 countries. It is an expectation that longer route flights will make up approximately 45% of the international market. Lease agreements and an increase in the number of aircraft owners/operators have made the actual aircraft more of a liquid asset (Global). These are just some of the limited factor discussed by Airbus as having impact on the supply curve.

The Airbus global market forecast renowned once again the welfares of the decline in oil prices, with the Asia-Pacific region of the world also profiting from this action. The forecasts laid out in the Airbus global market forecast were all sturdy. Firstly, the Asia-Pacific region is likely to receive 39% of all new aircraft carriages over the next 20 years, while concurrently holding accountability for about 40% of the world’s revenue passenger-kilometres (RPK’s). The Asia-Pacific region has also seen trade and colonization drive the demand for air travel in the past, which will continue to be the trend. The viewpoint for this entire region is tremendously optimistic and is likely to carry 60% of the total air traffic by 2023.

Reference no: EM132262672

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