LotsOfEssays.com

The purpose of this research was to examine the effects on transportation systems of increases of significant proportions in fuel costs. In this research, these effects were examined through a focus on such effects experienced by the passenger hauling segment of the air transportation industry.

It was found that the effects of increases of significant proportions of fuel costs on transportation systems is a phenomenon with an historical precedent which is well within the memory range of most Americans, as the last experience with the phenomenon occurred only 11 years ago. It was found further that the indirect effects deriving from economic recession and financial markets uncertainty will likely prove to be more damaging to the passenger hauling segment of the air transportation industry than will the more direct effects deriving from rising operating costs, and the necessity to raise fares.

Based upon the findings of the research performed, it was concluded that rising fuel costs in 1990 will adversely affect transportation systems. Specificaly, it was concluded that the passenger hauling segment of the air transportation industry will likely experience a period of significant recessionary activity.

page

INTRODUCTION ............................................. 1

EFFECTS OF RISING FUEL COSTS ON THE PASSENGER HAULING SEGMENT OF THE AIR TRANSPORTATION INDUSTRY ...................... 2

Crude Oil Price Increases: 19791980, and 19901991 ............................. 3

Air Passenger Traffic: 1979 1980, and 19901991 ........................... 4

SUMMARY, AND CONCLUSIONS ................................. 6

REFERENCES ............................................... 7

The Iraqui invasion of Kuwait on 2 August 1990 precipitated an international political crisis. As the IraquiKuwaiti petroleum reserves comprise...