Why We Cant Make Money in Aviation

854 Words4 Pages
WHY CAN’T WE MAKE MONEY IN AVIATION? Abstract The book “Why We Can’t Make Money in Aviation”, the author Adam Pilarski points out a large business problem, why are Airlines, always for the most part going into negative profitability constantly? The industry of Aviation, which is heavily subsidized, should be one that is able to keep itself afloat. If airline companies would charge a fair price, then they would turn a profit instead of cutthroat the other carrier just to get the customers business. If they would all band together, since there is only 3 major carriers now in the U.S., they could monopolize the industry and set their prices to be competitive and cost effective. Pilarski looks at different explanations of factors to develop a full picture of the poor financial performance of airlines. He divides his analysis into three groups: problems caused by too much government oversight, the operators themselves, and fluctuations in the industry from the early days until present day. Pilarski examines each cause and objects to most all of them. The only causes that the author found convincing are the ones that point the blame to the airlines themselves. WHY CAN’T WE MAKE MONEY IN AVIATION? 3 Pilarski’s argument of the pitfalls is very clear. It points out several things about the aviation industry and basic business tactics that are lacking. The text explains the idea that the aviation industry is not failing because of vulnerability, but that there business models are lacking. Pilarski shows that with the challenges of doing business, “airlines continued their flawed pricing and other policies, which were among the major reasons for the precarious financial situation they were in. In ties of unprecedented trouble continuation of wrong strategies and tactics brought about even more disastrous consequences.” (Pilarski,
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