George
Lv 4
George asked in TravelAir Travel · 1 month ago

For what reasons might an airline go out of business?

7 Answers

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  • 4 weeks ago
    Favorite Answer

    There is many reasons that come in factors I'd say, Basically putting it in simple terms

    Sometimes it could be the leadership of the company , Making not very good decisions for money, for example, buying things that not really is needed, focusing on the wrong moments for a period of the time, for example '

    Not focusing on the passengers journey , instead paying all their attention on getting new routes and advertising, so if you don't have passengers being happy there is no point focusing on things that are the most part of your business if that makes sense?

    Also, costs of things going up in climate, having debt like any other business. It could be a lot of factors building up together such as new regulations and stuff.

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  • 4 weeks ago

    Ask Donald Trump. His airline went bust very, very quickly, so he should know.

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  • Anonymous
    4 weeks ago

    when employees that you trusted

    steal airline company money by the millions

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  • 4 weeks ago

    Airlines are probably the most volatile businesses.  It takes A LOT of money to run an airline and its expected for new airlines not to make profit for several years but most new airlines can't keep getting investors during this process. Investors are fickle and believe in an airline one day and pull their stocks the next. Plus bills for airlines are much larger than other industries. If you don't pay your fuel bill or your airplane leases or your airport rents, you have no business

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  • Joseph
    Lv 7
    4 weeks ago

    Just like in any business:  the amount of money coming in is less than the amount  going out.

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  • 1 month ago

    Bad reviews, lack of customers/air travelers, plane crash, not enough employees, bankruptcy, and death.

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  • 1 month ago

    Their revenue was not sufficient to cover their costs.

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