American Airlines

The involvement of bearable costs is the most prominent reason of irregularity of demand and supply. It means, once handling capability has been shaped, despite the stage of capability consumption, it may require the involvement of huge preventable costs genuinely. In result of this situation, industries face an abnormal demand supply at a cost change due to several economic factors. Additional states of the abnormal situations in demand and supply, concern to the volume of any firm’s capability to the universal market.The focus of the market depend upon the mass of an industry’s ability, more the volume of industry’s ability directly proportional towards the capturing the market. On the other side, the existence of potential consumers is associated with the more delicately isolatable demand. A general airline industry considerably fulfills numerous conditions, essential and adequate, reliable with the arrangement of an empty core. A Scheduled airline works in a sense like to the ocean liner industry. It has at least for limited distances has pre-arranged preventable cost whereas, in large investment regarding in a commercial airplane, shows a ruined cost.Nevertheless, once the industry has dedicated to a meticulous convoy and schedule it cannot alter productivity without acquiring considerable adjustment cost. â€Å"Yet, as emphasized in the opening chapter, airline management is about matching the supply of air services, which management can largely control, with the demand for such services, over which management has much less influence. To be successful in this an airline can be a low-cost operator or a high-cost operator. † (Doganis, 2002) As far as the cost condition of an airline is concerned on the supply side, per mile price goes down as the covers miles increased.Any how, the technological limitations entail that by dipping the capacity of plane, distance covers could be augmented. Similarly, price per traveler depends on t he number of seats packed on a plane lifts up to full competence. Effects of Economic Change And Influential Externalities Recent economic collapse has affected every area and industry of the global economy. Consequently of the externality to airline industry could not be measures easily as yet, because they are linked with different related elements which are in the process of being retained on their past positions.It could be possible that the requirement would descend within an uncertain global market. The constant change in market buying behavior points out that the flexibility of market demand impact is lot more dependable on economic influences and change in international rules and regulations for relevant industries. In an international scenario the perfect flexibility of demand, eradicates the potential barriers for achieving consumer satisfaction. Eventually, any magnitude could be acknowledged by the market at the specified price and there would be remote chances to plug c apacity by aggressive pricing feedback.When externalities are important, there is a need to either enforce solutions or give the preference to the interests of society. It may be done through delegate democratic system or something else. â€Å"Many sources can agree upon the fact that it should not be classified a natural monopoly. The airline industry will continue to swerve up and down according to market conditions, and the same externalities will be in existence. † (Externalities Affecting, 2007). Hence, Political economy means the observations of consequences and means regarding collective choices and benefits that are unlimited to only individual transactions.As far as the thoroughly explained liberal political tradition is concerned, there is a negation found between socialized production and individual decision-making. Wages Inequality Doganis, in his book The Airline Business in the Twenty-First Century, does not feel any difficulty to find out mechanisms which is he lpful to know the government planning regarding sharing wage in the previous race. Economists firmly believed in the policy analysis while other said that there is no need of such mechanism which could brief the rise in wage dissimilarity.They might or may not be able to determine the ups and downs of economics very effectively, due to some lack of training but he, assured bout the existence of mechanism in about every where. Take an example of a Court Judge who was telling workers of Northwest if they would go to prison in case of refusal to toil for the income / wages that the company intended to pay them. Actually, this is not complete speech of the judge; he never intended to pressurize the workers but convinced them that, it was a policy matter. † It is for this reason that controlling labor costs is so crucial for airline managers.In the early years of the 21st century it is the key to cost control because, unlike fuel and other inputs whose prices are externally determi ned, airlines can and must influence their labor costs. † (Connor, 2001) In other case, if Flight Attendant Services Corporation (FASC) which provides services of to other companies, did not accept lower wages offered from Northwest for its workers, then would any judge be able to intimidate the FASC with prison? â€Å"Statistics indicate that wage inequality created a high occurrence of turnover. When the wage increase occurred, the turn over rate reduces, and work efficiency rose.† (Wage Inequality, 2007) In last quarter century, many such examples of The New York Times published news about a potential strike by flight attendants at Northwest Airlines that was blocked partially by a federal Judge and recommended that the management and the workers should have been on table talk. In that case, the company Northwest was suffered in industrial action by the employees. Fiscal & Monetary Policies in the Airlines Industry After the incident of 9/11, the airline industry suf fered in great economic disaster pertaining to decline in number of passengers as well as considerably higher fare.Only few airlines were in profitable condition even before that day year 2001. It was being said that some deregulations caused problems for industry as well as passengers. â€Å"While there has been some relaxation of reporting requirements, consistent with the regulatory reform trend, much data are still filed and available to the public. These records show traffic and revenue, broken down in various ways such as by passengers and cargo, and aircraft statistics. Of course there are balance sheets and income statements.† (Connor, 2001) The under noted analysis will suffice to the some extent about airline deregulation history and possible policy changes that help to develop competition in coming era. Nature of Airline Competition Amalgamation of firms within competitive environment encouraged the growth in the airline industry. As, in 1979, the U. S. airline sho wed a marvelous performance while following the rule of combination with competition. â€Å"In air travel demand estimations, income and prices of other relevant goods should be included in the estimation equation† (Air Travel, 2009)In 1983, Canada maintained her ticket average prices as compare to the U. S. Consumers were suggested a slice of benefit, but some spectators of that time disagreed with the idea that airline rivalry was beneficial for people. By the attack on World Trade Center, the airline industry has been badly affected in respect of its economic and monetary policies. This incident influenced the industry astonishingly in the form of increasing prices in base tickets excluding taxes called September 11th Security Fee. Public preference in flying had been least.People were afraid of this journey or prices of the tickets also created hindrances in deciding to fly. Many airline companies paid-off their workers. The Travel agencies were also facing declining in t heir sales. In shore, these reasons were directly responsible for some airlines ruined. â€Å"The Airline industry continues to be affected by the overall condition of the nation's economy. When healthy spending exists and pleasure travel is frequent, air carriers are able to fill flights, raise prices, and maintain a stable economic environment.† (The Airline, 2008) Passengers are people who came to know factual positions of the airlines regarding uncertainty while flying or steep high fares. In order to deal with any miss-happening occurs, an airline should keep minutely checking its financial position either it could stand longer or not. An airline should make their policies in such way that there is a chance of any amendment according to the circumstance. Conclusion With this above findings we have come to know that the American Airline Industry has changed in a great deal over the last few years.Possible reason for this often related to uncertain international environmen t based on changing buying behavior, security situation and change in mandatory / fiscal policies. If we have security threats in future, we might see heavy down sizing, inflation in rate and other negative economic influences. References American Pilots (2008) â€Å"American Pilots Fight for Return to 1934 Wages with Adjustments† Retrieved On March 23 2009, from, Air Travel (2009) â€Å"Air Travel Demand Elasticities: Concepts, Issues and Measurement†Retrieved On March 23 2009, from, Connor, William E. O’ (2001). An Introduction to Airline Economics. Praeger: Westport, CT. P. 69. Doganis, Rigas. (2002) Flying off Course: The Economics of International Airlines. Routledge: London. P. 180. Doganis, Rigas. (2001) The Airline Business in the Twenty-First Century. Routledge: London, p. 101. Externalities Affecting (2007) â€Å"Externalities Affecting the Airlines Industry† Retrieved On March 23 2009, from, Raghavan, Vedapuri S. & Raghavan Jayathi (2005) Ap plication of core theory to the U. S. Airline industry, Journal of the Academy of Business and Economics. The Airline (2008) â€Å"The Airline Industry: The Effects of Monetary and Fiscal Policies† Retrieved On March 23 2009, from, Wage Inequality (2007) â€Å"Wage Inequality in the Airlines Industry† Retrieved On March 23 2009, from, American Airlines According to the Chinese Philosopher Xun Zi, Man is really evil in nature and can only be good if he is trained to be one (Co, 1992). This could be a main reason why rehabilitation and harsher punishments were imposed on different prison camps. However, another Chinese Philosopher in the name of Meng Zi tells us the opposite. He tells us that Man is naturally good because he has a sense of pity, right and wrong, truth and falsity, and good end evil.Man is only tempted to commit mistakes because of negligence, wrong environment, and the willful desire to become evil (Co, 1992). This makes us realize that even if they commit mistakes and are proven responsible for that act, no matter how grave it is, they still deserve to be treated as man. Can our current approach to sentencing and corrections be successful and continue? Our current approach to sentencing and corrections can be successful, but not for a very long time as more people clamors for changes in the policies of the correctio nal system.In our present time, we believe that incarceration is the best way to rehabilitate an offender, but we were wrong as other methods can be used like fines, probation, community service, treatments and other sanctions (Stemen, 2007). The report of Mr. Don Stemens (2007) tells us that further intensification of incarceration is not the most effective way to increase safety in the community, since it only has less significant effects, and has greater effects on the taxpayers. From 1985 to 2004, it was recorded to hit a 202 percent increase.In one of the studies, it was even said that higher incarceration rates would mean higher crime rates. Furthermore, crime rate is really influenced by the economy, society, demography, culture, politics and incarceration rates of a county (Stemen, 2007). Still, the Declaration of Principles serves as the foundation of the country’s prison management for 100 years (Mega essays –). This Declaration is the result of the Cincinnat i conference. Things in the crime and punishment system of the United States really changed after liberty in 1970’s.From the introduction of the first American penal colony in Philadelphia in 1870, to the prohibition of cutting body parts and other ways of torturing as a way of punishing the culprits, to the introduction of the Auburn Model, to the beginning of vocational training, education, parole, and the division between the prison cells for young and adult prisoners (Mega essays, n. d. ), the correctional system is doing its best to provide its citizens the security that they need (Raver, 2007).Other innovations would include the medical model of prison management and rebirth of indefinite sentencing. Another discovery is the indeterminate sentence method, where in every five days of good behavior would reduce one day of sentenced imprisonment for the convicted prisoners (Mega essays, n. d. ). As there are only town operated jails before they are the only department that can deal with felons (serious offenders) in the absence of state of federal prisons. Pain through the beating of physical punishments was applied to the prisoners.But instead of using pain, the country’s leaders would now want the convicts to be sanctioned from practicing their liberty (Mega essays, n. d. ). Aside from that, it is true that before, and in some cases, even today, convicted criminals were controlled and punished by intervention, ethical education, and isolation (Mega essays, n. d. ). Isolation would mean that they are not allowed to communicate with others, and will only get a chance to work with others without communicating again when working together in silent labor prison factories, just like what is according to the Auburn Model.The Auburn Model was first implemented in New York State prison. According to the Auburn Model, imprisonment of a convicted culprit must be the period for him or her to let her body and soul dominate that can be achieved through ha bit and regimentation provided by the very authoritative control system. But this did not happen as an environment of slavery was created in the prison camps. (Raver, E 2007). But this is already too much. From the report of Mr. Stemen, he mentioned about the report of Mr. Michael Jacobson, the Director of the Vera Institute of Justice.Mr. Jacobson said that harsher punishments and strengthened rules for imprisonment will decrease the threat imposed by the increase in crime rates. Insufficiency of the date is not a problem as they now have sufficient data to support their claim. When that time comes, then it would be easy for policy makers to understand complex policies. A 10 percent increase in the number of incarcerations would only decrease 2 to 4% decrease. From 1970 to 2005, an increase of 628 percent in the construction of state and federal institutions was reported, with a number of 1.5 Million incarcerated criminals in U. S prisons and 750, 000 persons imprisoned in local ja ils per day. 5. 6 Million of the U. S population experienced being in prison. From 1992 to 1997, it was recorded to have a 25% effect in reduction of crimes, and the rest was caused by other reasons (Stemen, 2007). If they really want to reduce the crime rate, governments must focus on the increase in the number of police per capita, real wage rates, and education, and the decrease in unemployment rate (Stemen, 2007). Will rehabilitation continue as a primary correctional goal?Because on the belief of the efficacy of incarceration in the rehabilitation of prisoners, it is expected that more prison camps will be constructed which will come largely from the revenue collected by the states to go to this objective. In the 21st century, more funds are reserved for the construction of new penal colonies. In fact nowadays, they are more than the churches and the schools (Raver, 2007). The plan is that penal colonies will now provide different facilities that will further promote the rehabi litation of adult prisoners and for juvenile delinquents as well.Just like the North West Ohio Juvenile Detention, Training and Rehabilitation Center that has individual detention cells, control room, multi-purpose room, classrooms, intake area, nurse clinic, gymnasium, library, and a secured outdoor recreation area (Patrick, 2007). This will help the juveniles to develop their skills and talents while serving their sentence, so that once they are released, they will be able to help their community, the country. They have a highly structured curriculum where in the teachers are licensed by the Ohio Department of Education.There is an admission exam that will test their knowledge in math, science, and the language arts. This is for the placement in the Center’s computer based education curriculum. There is also the Accelerated reader program that will uphold their reading comprehension level that is suitable and proper to them. The Centre also has one hour per day organized gr oup large muscle activity that that follows the 5139-37-18 of the Ohio Administrative Code. Aside form this. There are one hour additional recreational activities, calisthenics, and leisure activities. Group sessions and total family sessions were also held.Aside from that, they conduct mental health assessments, and counseling. But according to the findings of Senator Whitmire and Rep. Madden, the real problem of the increase in crime rate is no other than the faulty and weak criminal justice policies and practices (high revocation rates of probationers, lack of in-prison or community-based treatment and diversion options, and low parole grant rate). They think that what was done in the past is already enough. They think that the money should be more spent on more quality projects that the population can enjoy.Their goal is to lessen the expenses appropriated by the federal government in constructing too many prisons (The PEW Center on the States, 2008). The two legislators do not believe in building more prisons. For them, what is important is to treat the drug addicts, alcoholics, and to those individuals on parole and on probation that are having some difficult time coping with problems, this will prevent them to go out of the prison and eventually commit the same crime, or commit a new one (The PEW Center on the States 2008).Legislators instead must pass bills that will give correction agencies computers that will have Compstat program that will be used to trace their caseloads (Public Safety Performance 2007). Presently, more and more correctional agencies are emerging in the idea that they can help in the progress of public safety thru helping the offenders to complete their period of rehabilitation (The PEW Center of the States 2007). The expansion of the country’s prison system does not actually decrease crime rate if their aim is to only imprison many of the citizens without really reducing the rate of criminal offenses.It is said that incarce ration is the best way to avoid one from doing crimes, but is not effective in punishing and debilitating those persons, but it works (Stemen, 2007). For example, it said that the imprisonment of drug criminals will defeat the purpose and efficacy of this system to decrease the crime rate. Its predominantly negative implication on drug criminals were also reported (Stemen, 2007). Will supervision of offenders in the community change on approach? What should be focused on is to provide the centers with different facilities where they can mold their talent, skills, etc.where they can use when they go out. In the Pennsylvania system, guards have a complete supervision of the prisoners in the centers (Mega essays, n. d. ). We cannot prevent that there might be some special incidents that can happened in the detention place, like acts of aggression, disorderly behavior, attempts of the juvenile to harm himself, and threats in security. This is where the guards are most needed. In 2007, i t is recorded that there were 40 special incidents in the North West Ohio Juvenile Detention. But before doing all of this, they must first provide solution to the correctional system first.The Correctional system has different problems like its rising cost, the overcrowding of prison cells and the increased hazard for both the inmates and the correctional personnel (Raver, 2007). For example in Texas, they will have to a lot additional $900 million to add more beds in prison camps (The PEW Center on the States, 2008). Some of the solutions given to these problems were the following: First, prohibit the unsupervised release of the prisoners just to solve the overcrowding of convicts in the prison cells. This will rather increase the risk of the security of the citizens.It will be appropriate to have it supervised. In this way, the rehabilitation of the prisoner and the security of the community will not be at stake. When we say rehabilitation, this would include counseling, therapy and traditional probation (Raver, 2007). Second, White collar criminals or non-violent offenders do not need to be imprisoned anymore. This will only occupy space, and waste the money of the government (Raver, 2007). The parole system does not only let ex-convicts to enjoy a free life. Even if these people were already outside, the authorities still monitors them (Mega essays, n. d. ).They need to make sure that they will completely supervise them, just to prevent those persons to repeat their crimes, or to do another crime. But of course, this will not be easy for the released prisoners. But if this will not be prevented, if they commit the same mistakes, or does a new crime, it is important that the following must be considered first: the degree of the crime committed, the danger it imposed to the community, and the cost. Senior administrators must be there to review the violation, and most importantly issue policy and guidelines for responding to these parole related violations ( The PEW Center of the States, 2007).Those under parole will find it very hard to earn some money and to find a permanent job because employers’ sets high standards that in some point they were not able to meet or they are just discriminated and pre-judged. If not, they are just limited to some certain dirty jobs, thus some of them would find solution by venturing into illegal jobs (Stemen 2007). Once again, the role of the authorities is important, especially the policy makers. Prison-based education programs will not only help the prisoners to change themselves, but it can also serve as a tool to prepare them before going inside and join their community.Another one is for the policy makers to train better probation and parole officers (Stemen 2007). Do we need a new paradigm for sentencing and corrections? It is suggested that the kind of system that the United States have must be re-examined and re-evaluated based on its total performance (Raver, E 2007) The prison system i n the eyes of the convicts is inefficient in terms of really playing its purpose because of some hostilities inside the penal colonies which should not happen.The facility should train, educate, and mold the person to a person that is ready to face the challenges if the time comes that he’ll leave the prison. But this is not what is really happening in these places (Raver, 2007). Community corrections agency are expected to produce report at least once a month, but instead the report contains only a list of their activities annually. Community corrections agency is expected that they should have a system to determine and manage movement towards the prevention of crime and addiction.They should not only monitor the progress of paroled person, and the individual managers in their effort to promote the achievement of their objectives. Incentives will also be given to managers and staff (Public Safety Performance, 2007). So far, it is said that the United States has the highest r ate of incarceration amounting to 450 people for each 100, 000 people (Mega essays, n. d. ). The effects of increased incarceration rates will still be affected by different factors such as the range of in state prisons population, which has actually less effect and crime rate (Stemen, 2007).In Florida, both the rate of crime rate, and the rate of incarceration increased, that eventually destroys the society, especially the family, steals the time of some imprisoned parents to take care of their children, and can also take the present and future income of the community where this people belong, and would only cater to the feeling of bitterness towards the present legal system, thus overall creating social disorder that makes way for the further push of crime rates in a higher level (Stemen, 2007).The North West Ohio Juvenile Detention, Training and Rehabilitation Center accepts into its custody those delinquents that is physically and emotionally threatened or hurt, run away child, abandoned child, and or is ordered by court, as stated in the Rule 7 of the Ohio Ruled of Juvenile Procedure. Other private institutions and groups that give leadership training and change for the youth, family, and the community, should increase their role in this issue. What the government cannot provide, they can supply (Stemen, 2007).What the citizens think now is to make some policies that will quickly respond to the real cause of crime and not just simply facing it. In a survey in 1994, 48% believes on this, that later on increased by 2001 reaching a rate of 65%. On the other hand, 42% believe that using a harsher sentence will decrease crime rate, and became 32% in 2001 (Stemen, 2007). They suggest that authorities must reconsider their thoughts about incarceration, that they must consider more the mentioned aspects in policy making (Stemen 2007).Can we reduce the impact of prisonization and improve the successful reentry of prisoners to the community? Yes we can. Treatment o f services, conditions and intensity of supervision, release, and responses to violations are appropriately assigned which paves the way for an increase in crime rate because of its inefficiency. They should be supervised heavy-handedly grave offenders, and light-handedly on those light offenders, with no intensive interventions included (The PEW Center of the States, 2007).But the establishment of institutions like The Bureau of Federal Prisons, and structures like Alcatraz were primarily built as a way to decrease the crime rate in the country, and to make sure that the most dangerous criminals are caught and kept imprisoned. This is the only way that the federal government can answer the challenge of those big time criminals who have more power and weapons than the law enforcers (Raver, 2007). The common problem for those freed convicted criminals is that they were viewed by others as a threat or danger to the peace and orderliness of the community.Some of them are always impriso ned, whether they commit another crime, or they repeat what they did. The people from the community believe that instead of changing into a better person, which should be the real purpose of imprisonment, they only got worst inside, which reflects the people’s disappointment in the country’s correctional system (Raver, 2007). Policy makers should have a statistics of the percentage of those who were revoked for violating the rules of their parole, and the percentage of those who were revoked for committing new crimes.Judges, the parole board and the agency must be well coordinated in order to prepare the prisoner for the world outside the prison and detention center. They should continuously promote the prevention of crime, and not just the revocation of supervision (The PEW Center of the States, 2007). It is also said that consequences for different violations are not maximized. Policy makers must make sure that every violation is faced with an appropriate punishment. It is said that in order for supervision agencies to react appropriately to the needs of the culprit, they must have community based services and sanctions.They can use electronic monitoring or day reporting centers (The PEW Center of the States, 2007). Aside from providing the needed facilities for the prisoners, they must, at the same time, evaluate the third generation instruments that can unchangeable and changeable. It is concluded in one report that rewards are more effective than penalties in molding one’s behavior (The PEW Center of the States 2007). They can also use incentives that will encourage the prisoners to comply with the conditions and to prohibit themselves from doing another crime or repeating the crime again.It can be in a form of gift, certificates, reducing the treatment requirements, and minimal supervision (The PEW Center of the States 2007). References Co, Alfredo P. , 1992, Philosophy of China: The Blooming of a Hundred Flowers, Manila, Philippines : University of Santo Tomas. Mega essays. , –, American Corrections†¦A History. Available from: Patrick, Brian, 2007, North West Ohio Juvenile Detention, Training, and Rehabilitation Center Annual Report 2007 Available from: Public Safety Performance, July 2007, You Get What You Measure: Compstat for Community Corrections No. 1. Available from: Raver, Edward, 2007, Understanding the American corrections system. Available from; Stemen, Don, January 2007, Reconsidering Incarceration: New Directions for Reducing Crime. Available from: < http://www. vera. org/publication_pdf/379_727.pdf The PEW Center on the States, January 2008, Changing Direction: a Bipartisan Team Paves a New Path for sentencing and Corrections in Texas No. 4. Available from: The PEW Center of the States, November 2007, When Offenders Break the Rules: Smart Responses to Parole and Probation Violations. Available from: >