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Why Can't We Make Money in Aviation?, by Adam M. Pilarski
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Seemingly since the beginning of aviation history there has been discussion and speculation on the remarkable inability of the industry to generate profits. This is even more so the case now, when a number of the world's airlines are bankrupt. The failure of aviation, or at least of airlines, to produce a reasonable rate of return on investments has been a fact pondered by many at great length but never satisfactorily understood. Somehow the industry seems to violate the most basic principles of economics and business. The question as to how this is the case and how the industry managed to survive, let alone actually grow and prosper so far, is the subject of this book. It details the historical performance of the industry and critically explores the various theories proposed to explain its lack of profitability. Summarizing the analysis, the book also looks to the future, combining lessons from the past and recommendations regarding the better management of airlines. In conclusion it offers a prediction on the future of the global airline industry.
- Sales Rank: #2004156 in Books
- Brand: Brand: Ashgate
- Published on: 2007-09-28
- Original language: English
- Number of items: 1
- Dimensions: 9.21" h x .63" w x 6.14" l, 1.15 pounds
- Binding: Hardcover
- 260 pages
- Used Book in Good Condition
Review
'This is a well thought out, profound professional perspective of the challenges of the air transportation business from a well respected airline economist and surveyor of the industry.' --Steven F. Udvar-Hazy
'Seemingly since the beginning of aviation history there has been discussion and speculation on the remarkable inability of the industry to generate profits. This is even more so the case now, when a number of the world's airlines are bankrupt. The failure of aviation, or at least of airlines, to produce a reasonable rate of return on investments has been a fact pondered by many at great length but never satisfactorily understood. Somehow the industry seems to violate the most basic principles of economics and business.
The question as to how this is the case and how the industry managed to survive, let alone actually grow and prosper so far, is the subject of this book. It details the historical performance of the industry and critically explores the various theories proposed to explain its lack of profitability. Summarizing the analysis, the book also looks to the future, combining lessons from the past and recommendations regarding the better management of airlines. In conclusion it offers a prediction on the future of the global airline industry.' --SpeedNews, June 2007
'The author accomplishes all he sets out to do: he is interesting, educational and the book is a joy to read. Balancing the anecdotal stories with the more detailed economic analysis reinvigorates the text regularly. With such credentials, Pilarski's experience permits him the authority that is necessary when tackling a topic as complex as airfinance.' --Airfinance Journal, October 2007
From the Back Cover
Seemingly since the beginning of aviation history there has been discussion and speculation on the remarkable inability of the industry to generate profits. This is even more so the case now, when a number of the world's airlines are bankrupt. The failure of aviation, or at least of airlines, to produce a reasonable rate of return on investments has been a fact pondered by many at great length but never satisfactorily understood. Somehow the industry seems to violate the most basic principles of economics and business.
The question as to how this is the case and how the industry managed to survive, let alone actually grow and prosper so far, is the subject of this book. It details the historical performance of the industry and critically explores the various theories proposed to explain its lack of profitability. Summarizing the analysis, the book also looks to the future, combining lessons from the past and recommendations regarding the better management of airlines. In conclusion it offers a prediction on the future of the global airline industry.
About the Author
Adam M. Pilarski is Senior Vice President of AVITAS, USA. He joined the company in 1997 after 17 years as an economist with Douglas Aircraft Company to oversee its valuation and consulting services. He is also responsible for supporting customers with studies including traffic forecasts, economic forecasts, statistical analyses, strategic planning and airline industry issues. As Douglas Aircraft Company's Chief Economist and Director of Strategic Planning he was responsible for all economic analyses performed for the company and was the publisher and editor of the annual "Outlook" publications. Prior to joining Douglas, Dr. Pilarski worked as Assistant Professor of Economics and Statistics at California State University, Los Angeles. In addition to his work at McDonnell Douglas, he was an Adjunct Professor at the Anderson Graduate School of Management at the University of California at Los Angeles, at the University of California at Irvine, and at California State University at Long Beach.
Most helpful customer reviews
2 of 2 people found the following review helpful.
Greatly informative, pointed research
By David Wilkerson
As a professional aviation educator I find this work reaches through aviators' zone of curiosity and into their well of essential knowledge regarding their industry. Aviation has always responded to the extreme in general economic cycles; general public recession equals aviation depression. This author clearly and logically shows certainly a major reason for such trends. Managers (today's and tomorrow's) should at least consider the power of trends and supply chains as they are presented by Adam Pilarski's excellently-named work. Should this book be considered lacking in any regard, it is its focus on the airline component of the overall aviaiton industry. Still, the author selects his target well, and such scholarly treatment of General Aviation (GA)and its razor-thin margins might dissuade both the researcher and reader from participating in an industry that, for all its drawbacks, still provides to its members lives far less ordinary than most comfortable, predictable professions that pamper their denizens with ample finances and dulled senses.
0 of 1 people found the following review helpful.
Not for me...
By Amazon Customer
I took this book from the University library (I was a Masters student in Air Transport Management), spent about an hour with it and quickly put it back on the shelf.
The title is misleading. It's of no use to anyone involved in academia and is full of out dated notions, strange ideas and general opinions of the author. Where was he going ranting on about the bible and the commandments?? The man lost the plot.
Certainly not worth the nearly 60 bucks Amazon is asking for it.
Read Holloway 'Straight & Level' or something from Doganis or Stephen Shaw for an informed, up-to-date overview of what really impacts profitability in this industry.
0 of 30 people found the following review helpful.
Definitely Not For Making Money!
By Izrul Fizal
* If you're looking for tips on ways to make money, this is not the book for you.
* I just waste my money on this one.
* Only good for someone who is related to airline industry.
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