Homework Question on Central America
- Follow the link and read the article. Review the article and give your thoughts in the paper. Make sure to answer these questions in your review:
- According to the article the growth of the GDP for this area will be greater than the average for the world. How do you think this will affect aviation in the area?
- Do you believe the area will be able to keep up with the demand for aircraft the article is predicting?
- With South American and North American airlines competing with the airlines of Central America, will this help keep the market in the area competitive? Or will the stronger airlines from the South and North keep the airlines from this area stifled?
- Times New Roman,
- Font Size 12,
- Double Spaced,
- 2 Pages,
- Be sure to cite any references used.
Homework Answer on Central America
The article “Latin American and Caribbean airlines will need 2,300 aircraft by 2033” was written by Airbus, a civil aircraft manufacturer. In the article, the aircraft manufacturer predicts how the situation in the aviation industry will be in Latin America and the Caribbean by the year 2033. The author analyzes the current growth of Gross Domestic Products (GDP) and the expansion of the middle class in the Latin America and Caribbean region. Using the analysis, the author predicts that the region will require at least 2300 aircraft to manage an interregional and domestic flow of traffic.
Globally, the growth of GDP has been averaging at 3.2 %, but Latin America and Caribbean region is experiencing a growth rate of 3.7%. More GDP in a region implies that people will have a higher per capita income. As a result of a higher per capita income, socio stratification is altered, and the middle class expands. When the middle class has more money, it means that they have a higher purchasing power and ability to conduct business.
Consequently, there is much need to travel domestically or interregional. With the growth in GDP in Latin America and the Caribbean region being higher than the global average, traffic flow in and out of the region is bound to escalate. Air transport will be a beneficially of increased traffic. Airbus argues that growth of traffic in Latin America will grow by 4.9% in the next 20 years, 0.7% higher than the global average. Ultimately, more aircraft will be required, and more jobs will be created in the aviation industry.