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Finance and Cost Structure. Management Assignment. (Essay Sample)


Respond to the discussion items below and comment, expand, and/or clarify the
With two recessions in the first decade of the 21st century, airlines worldwide have struggled to survive.
Describe one effective step airlines have taken in an effort to regain or maintain profitability?
Has this step imposed a cost on another party


Finance and Cost Structure
Student’s Name
Institutional Affiliation
Finance and Cost Structure
Airlines are businesses and just like any business, their sole aim is to make profits. The profitability of any business is usually determined by the prevailing economic and environmental factors. Recessions are the worst economic crises that has affected many businesses and airlines were not spared. Following the deregulation and the recessions that occurred in the 21st century, airlines have managed to survive, but after taking radical measures to counter the sudden changes in the economic environment. Recessions are usually accompanied by several changes that include contraction of the economy, increase in the rate of unemployment, and a fall in production and sales, among others. The consequences of the 21st century recessions are evident in the losses and subsequent changes that large airlines made.

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