Black MBA - Summer 2008 - (Page 74)

CAREER Airline Forecast Airlines Challenging Times Mean More Resourcefulness By Marianne Kunkel Dale Doreen, the director of the International Aviation AIRLINES HAVE CERTAINLY taken some hits over the MBA at the John Molson School of Business at Concordia last few months. From FAA-mandated safety inspections to University in Canada, says of its aviation MBA program, rising fuel prices that cost the industry $1 billion for every “The airlines have had some dramatic difficulties in the past dollar increase in the cost of a barrel of crude oil, the airline couple years. This has been a challenge, but we continue to industry has taken more than a few punches and kept on market the program. And we have expanded its focus to inflying. But compared to other industries, this Goliath-size clude other segments of the industry, such as air traffic conindustry has proven that it can weather tough times, buoyed trol and corporate fleet management… ” by the simple fact that our appetite for fast, convenient The good news, according to Newsweek writer Daniel transporation not only isn’t disappearing, it’s actually growGross in his April 2008 article “Silver Linings in the Sky: How ing at an increasing rate. a Recession Will Improve Air Travel,” is that a financiallyEven with rising gas prices pushing up ticket costs, public struggling airline industry – and, more generally, an ecointerest in air travel hasn’t waned. Whereas the number of nomic recession in the United States – could mean substantial monthly flight departures plunged 15 percent from 2000 to improvements for the quality of air travel. Gross argues that the fall of 2001 (following the 9/11 terrorist attacks), the U.S. fewer flights and less customers could actually ease some of Bureau of Transportation Statistics reported only a 1.5 percent the problems with the airline industry that have frustrated decrease in flight departures from January 2007 to January so many people in the last decade, such as noisy flights, 2008. While it’s possible that Americans may soon grow tired cramped seats and leg room, extreme deof paying the rising costs of air travel, econparture delays and meal costs. Profit loss, omists predict that the increasing strain What a deal! in other words, could motivate airline comof buying gas at the pump may convince consumers that it’s almost as cost-effective, A job in the airline industry is not panies to make air travel more pleasant, and much easier, to leave their cars parked short of benefits. Some common more attractive and consequently, more money-making. in their driveways this summer and fly to pluses include: Gross’ theory is not off-base. In sumtheir vacation spots. • free airfare for you and your mer 2007, Southwest Airlines announced In colleges and universities nationwide, immediate family on the that it would begin a major re-examination MBA programs continue to show enthucompany airline, of its model. Aiming to increase its annual siasm for careers in the airline industry. • discounted airfare for you revenue by $1 billion in the next few years, Northwestern University, Georgetown and your immediate family Southwest is currently considering signifiUniversity, the University of Michigan and on other airlines, cant changes to its famously no-frills busithe University of Texas all report strong • employee parking and ness, including instituting assigned and airline placement for graduating MBAs, bonuses. priority seating, installing TV and wireless with American Airlines considered one of Internet access, flying more than one type Georgetown’s top five employers. According of airplane and catering to international markets, which is to American Airlines spokesman Tim Wagner, in 2006 American where much of the airline industry’s focus is turning. Airlines sent recruiters to 15 schools and recruited and hired In general, for the U.S. airline industry to thrive, it has the same number of MBAs as it had in 2005. to pay increased attention to international markets. The Whether hired for financial planning, marketing or mannumber of airline passengers carried by India’s airlines, for agement responsibilities, more and more graduating MBAs example, grew exponentially from 2007 to 2008. Attracting are entering airline jobs better prepared for the airline indusmiddle-class citizens from India, who are increasingly able to try, thanks to the “Aviation Management” MBA concentration afford leisurely travel, and other economically-advantaged option that has become popular at many universities. This countries such as China will be crucial to the airline indusspecialized degree trains students for managerial, decisiontry’s short-term financial recovery and long-term reputation making and consulting positions in airline, aerospace and as a stable industry. mba military aviation environments. 74 BlackMBA • Summer 2008 • www.nbmbaa.org http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Summer 2008

Black MBA- Summer 2008 Contents Mailbag Up Front From the President & CEO Politics of Change Catalyst for Change: Results of our 2008 Political Poll Know Whose Shoulders You Stand On: The Legacy of H. Naylor Fitzhugh Howard University: Changing With the Times Straight Talk: CEO to CEO Creating Your Own Sandbox Dual Threats Avoiding the Faux Pa Invest in Your MBA Everything You Need to Know About...Estate Planning On Campus Plan Ahead The Big Show What's in a Name? On the Move Market Forecast Jeff Friday Keith Wyche Life Lessons On the Ground Real Biz A Golden Opportunity Entrepreneurial Institute Tech Tools Read for Success Stacey Tisdale Advertiser Index

Black MBA - Summer 2008

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