Global economic and lobal recession Essay Example | Topics and Well Written Essays - 1750 words

Global economic and lobal recession - Essay Example Since the 2008 global economic crisis the airline industry was severely affected by reduced business revenues as the market adjusted to difficult economic times. Commercial and private travel costs had to be reduced in order to keep in touch with the economic realities that global performance had dipped into. Many related industries such as the motor vehicle industry were also severely hit to liquidation, which illustrates the magnitude of the threat that the industry faced. As a result of the reduced fortunes and opportunities in the industry and many national economies in general, governments had to chip in their protectionist policies against adverse impacts on the economy. As a result, there was an increase in government debt particularly in European economies that have had adverse impact on the integrity of the industry as an aftermath of the recession. The banking sector which impacts directly on the performance of most industries was also hit during the recent economic crisis and until full stabilization occurs, operation certainty remains elusive in the airline industry. According to Niththyananthan (1), the domestic market in the whole of Europe is particularly affected by the proceeding in the banking sector to such an extent that business operations are conducted with extra caution. This explains the huge national bailout pleas that certain economies in Europe have been forwarding to the IMF and the European Union, since their economies were severely affected.