US Airline Industry

p Running Head : U .S . Airline industry

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U .S . Airline industry

U .S . Airline industry contributes greatly to the economy . It generates over 1 .2 trillion to the annual economy as well as creating over ten million jobs . The industry supports new market creation abroad and within the country promoting general trend of GDP growth in the country (Torres Duke , 2005

GDP is the total product of a country that is generated within its boundaries within a given trading period , usually one year . When current

br GDP is subjected to GDP deflator it is converted to real GDP . Thus real GDP results from adjustment of GDP to reflect current price or real value of commodities from the trading period rather than a general sum of product output over time . Calculation of real GDP helps in the calculation of GDP growth rate . Different sectors use it to determine their business expansion rate in terms of service delivery . Real GDP is important for the airline industry because it helps in calculation of growth rate . This can be used in comparing the industry 's performance for a number of consecutive years . U .S . Aviation Industry contributes to about 5 of the national GDP

Consumer Price Index (CPI ) is the standard measure of the rate of inflation in consumer goods . It is a very important factor in the airline industry since it helps to determine the current cost of consumer goods used in the industry (Falcoff , M . 1984 . When the CPI is...