Airline Industry

Running Head : Airline Industry

Airline Industry

[Name of Writer]

[Name of Institution] An externality is a cost or a benefit arising from an economic activity that affects people other than those who decide the scale of the activity . This means that an externality is actually the consequences of an activity that affect the people that are not directly involved in the decision , that is , any third party

In this we shall look into any externalities whether positive or negative those are created by the airline industry

Any particular business

decision or economic activity or transaction affects people other than the buyer and seller also . There are others also affected in the process , those that are not the party to a decision

The airline industry produces both positive and negative externalities and they are not specifically positive or negative . The positive externalities are those benefits that the third party or the one that is not involved in the decision get as a result of a particular business decision . The main positive externality of the airline industry would be the benefits that the natives and residents of the area in which the airline industry is located get economically . The area would progress in financial and monetary terms

Jobs would be created for the locals in the construction of the site as well as the in the various avenues that are located in the airport such as air stewards and peons and so on . The more educated of them could opt for jobs as air-hostesses and flight managers . They can also go for more lucrative administrative jobs

There would be more economic activity in the area . If the area is considerably lesser-known in terms of popularity and is under-developed such a construction could benefit it greatly in terms of name and also economic activity . Restaurants and transportation facilities shall also open up in the area and this will in effect benefit the residents of the area

Apart from the benefits that are availed by residents of the area where such activity takes place , many benefits are also availed by the airline passengers and others . For example , airline industry promotes tourism that in turn generates economic activity and also employment for people

There has also been a reduction in noise pollution that has been a major concern of people and environmentalists everywhere . Fuel efficiency has also increased considerably

The negative externalities are those that are meted out in terms of noise pollution and wastage of certain resources such as fuel . The major charge against the airline industries is that they produce loads of noise pollution that pose a threat of various diseases to the population at large and the passengers and workers in particular

Another charge levelled against the airline industry is that they are not fuel-efficient and waste a lot of such an important resource Although the industry refutes such charges and it has indeed become more fuel-efficient than in the past , the charge still holds substantial validity and it the major...