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As we all know he credit crunch is biting hard and affecting almost every business in the economical world. More so then any other business are the airlines being affected. We have for a few years now been enjoying the great luxury of budget airlines, where we have been able to travel short distances for as little as 99p. But with the increased price of oil hitting harder than ever, these budget flights are looking like they may well be coming to an end. As we have seen some of the major airlines have gone in bankruptcy. But are the fuel prices really to blame for this? Or was it the sheer heat of the competition that has caused such a major ripple in the budget airlines and there collapse? It has been a wonder on everybody's mind on how these airlines have actually been making a health profit. For 99p I could not even go out and buy a bag of chips, but in fact I can instead fly to another country that was close by. The Rise of Budget Airlines Budget airlines first started in the 1970s with a Southwest Airline offering ticketless flights, since then it has developed at enormous speeds with the likes of Ryan air and Easy jet being one of the biggest. One of the main progressions that we have seen is via the boom of the internet, to basically book a budget flight, all you really need handy is your bank details, the booking procedure requires no man power and no maintenance as everything is automated, from booking your seat to arriving at the airport. The Downfall of the Airlines The internet may have also had a slight affect on the budget airlines. As price comparison sites popped up the airlines were always pushing down there prices so that they could compete with rival companies. But there is only so far that this can be taken, as when companies start offering near to free services, the outcome has to be that they will end up making a loss rather than a profit. Although the airlines are now struggling, I hope that they can together find a way to resolve this problem, as it was great for regular travellers and business people. Instead of spending hours upon hours on the trains, they could easily and affordably catch a flight to where they wanted to go.
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