The Concept of Economic Crisis
The word crisis has its origins in Latin and Greek,
meaning depression and depression. In social, economic and psychological terms,
any problem can be encountered and no solution can be found. The concept of
economic crisis can be expressed as the sudden and unexpected problems in the
economy affecting the economy of the country.
“If we define the economic crisis in another way, we
can say” severe change in the prices and quantities of goods and services. This
situation causes fluctuations in the economy.”
Types of Economic Crisis
“Economic crises are divided into two groups according
to the form of formation. The first of these are the” real sector" crises.
In general, these crises are reflected as inflation crises and recession crises
in the goods and services markets and as unemployment crises in the labor
markets. In this context, real sector crises arise as serious contraction in
employment and production quantities in labour markets and goods and services
markets. The second group is the extreme imbalances in financial markets,
especially the “financial” crises that arise due to problems in money markets.
Financial crises are defined as collapses in financial markets that can have
devastating effects on the real economy and disrupt the effective functioning
of markets.”
Only the 2008 economic crisis was discussed in this
part of our study. In the crises before 2008, the digital sector was not based
because it did not develop.
2008 Global Economic Crisis and Its Effects on Aviation Sector
The global crisis of 2008 was the last in a chain of
increasingly violent crises over a quarter of a century following the first oil
crisis (end of 1973). In the United States, the problems in the financial
markets that occurred in the summer of 2007 escalated into a global crisis in
September 2008. (Erdönmez, 2009: 85).
“After this crisis, many banks went bankrupt by
September 2008, and a new process was entered with the bankruptcy of Lehman
Brothers, the most important of which was the bankruptcy of Lehman Brothers.
After all the negative experiences in banking, the banking system in the United
States has come to an end. This crisis spread quite rapidly, causing credit
volume collapses in the United States and Europe. The central banks of the
countries affected by the crisis have provided liquidity assistance, lowered interest
rates and announced packages of measures by governments in order to address the
problems of their financial institutions, which have low liquidity and
difficulty paying. The aim of these measures is to ensure economic growth in
financial markets and restore confidence in the financial sector.”
The third effect of the crisis is that developed
countries have been heavily affected by the crisis. For example, countries such
as America, Britain, France and Germany have been more affected by the crisis
and Turkey has been less affected by this crisis. Therefore, countries such as
Nigeria and Sudan have also been less affected.
The aviation sector is a global sector and is among the
fastest growing sectors. Aviation sector is also very important in the
development of the economy. Like other sectors in the world, the aviation
sector has been adversely affected by this crisis. The economic downturn has
caused demand to fall and people are now starting to prefer more affordable
vehicles. Most airlines around the world have either closed or gone down the
road.” After the 2008 crisis, the development of the aviation industry in the
world decreased by 6.1%, making it the largest decline experienced after the
Second World War.”
“In 2009, when cargo traffic in the world aviation
industry decreased by 8.8% compared to the previous year, Turkish Airlines
recorded a dramatic increase of 20% in the amount of cargo and Mail carried.
Here, regulations were made on tariffs for passenger planes and cargo planes,
and arrangements such as being more active in the market and reducing costs
were made to make better use of capacity. Thus, THY cargo's share in the
Turkish air cargo market reached 57% by the end of 2009.”
Effects of Crises on Aviation Sector
One of the important elements of the economic and
social development of countries, air transport, Wars experienced, economic
crises, such as the negative, has entered into a continuous growth. In the
sector of large-capacity, fuel-saving, low noise and emission levels with the
development of the activities of the airline companies, aircraft management,
had a significant impact on the scope and quality of Service, customization and
collaborative to develop a commercial structure with the formation of a
structure by changing the structure of the sector, the sector has turned into a
market where consumers are sovereign.
“Due to its high price flexibility, air transport is
severely affected by economic crises and increases. In addition, the increase
in security risk, the negative development of security perception in
individuals, and in parallel, increased anxiety and anxiety in individuals are
among the reasons that decrease the number of passengers. Especially mainly
fosil oil-centric causes; Examples include the 1973-1979 oil crises, the
1990-1991 Kuwait war, the 1997 Asian financial crisis, the 2001 U.S. attacks on
the World Trade Center, and the 2002-2003 new security practices (cost
increases), and finally the world financial crisis, also called the Mortgage
crisis in 2008.”
“Air transport is a cyclical business, with global
consolidated passenger traffic increasing or decreasing according to demand
over the years, but growing on average around 8% per year. Air traffic grew by
at least 2% per year, even during stagnation periods such as the 1979/1980 oil
crisis and the Asian crisis of 1998, only shrinking during the 1991 First Gulf
War and the September 11, 2001 terrorist attacks. After the September 11
attacks, global demand for air travel collapsed abruptly, and although a
recovery began shortly afterwards, the SARS outbreak in 2003 also affected the
previous levels of demand, but in 2004. However, in 2009, air traffic decreased
by 6.1%, it was the largest decline recorded since World War II.”
In the air transport industry is one of the fastest
growing industries across the world by the global crisis and has contributed a
lot to social and economic growth has been damaged. The global economic crisis,
because of the presence of synergy between the global economy and the demand
for air transport, the decline in demand, with people choosing cheaper
alternatives due to less travel and transportation, to decrease the amount of
air traffic, most airlines have the deepening of the global recession and to
the reduction of capacity due to new aircraft orders to postpone the go, so by
manufacturers Airbus and Boeing, to a significant decrease of investments, fuel
prices, operational costs and hence an increase in profitability in the
downfall of the industry, this has led to the loss of millions of jobs in
employment and social upheaval, the change of business models in the air
transport industry and the rise of low Cost carriers (LCC), which offer cheaper
airline travel to the masses.
The increasing foreign trade relations between the
globalized world and countries accelerated the spread of the global financial
crisis along with the problem of trust in international markets. As a result of
the development of protectionist policies and negative economic expectations,
international trade has narrowed as countries try to reduce their relations
with international trade markets in order to protect themselves from negative
impacts.” Air transport is in an important position in terms of global trade,
with declining demand and shrinking international commodity trade resulting in
reduced revenues for operations and airlines in the freight transport sector.”
Fuel costs in the air transport industry increased
from US $ 133 billion in 2007 to US $ 187 billion in 2008 (an increase of 40%)
and the share of fuel costs in total operational costs increased from 27% to
33%. As a result, the loss of the global air transport industry in 2008 has
been caused by a decrease in demand as well as an increase in fuel prices and
therefore operational costs. (Goyal ve Negi, 2014: 299)
The effects of the global crisis on the air transport
industry in the world, passenger and freight traffic, capacity, occupancy rate,
total revenue, fuel, and total expenses, profitability and the air transport
industry was examined through the indicators of 2008 after the global economic
crisis in 2009, in parallel with the world economy, has experienced one of the
largest contractions after the Second World War. It is seen that the Middle
East is the least affected region by the crisis and that the airline carriers
continued to grow even in 2008-2009.
“In the air transport sector, it is evaluated that
demand and supply grew below annual averages in 2008, passenger occupancy
decreased due to insufficient flexibility and capacity adjustment in the face
of the decline in demand, and operational losses and high net losses,
especially due to the increase in fuel prices. Demand and supply in the
industry contracted significantly in 2009, with total revenues and expenses
reduced by about 17%.”
In addition: a decline in the total number of
passengers is observed due to terrorist attacks in Turkey in 2015 and 2016.
After 2016, there has been an increase in both domestic and international
routes.
Due to all these economic crises, epidemics and
terrorist acts, the aviation sector continued to develop, but the pace of
development slowed down. During these periods of slowdown, ticket sales rates
have fallen.Therefore, both normal marketing and digital marketing have seen
setbacks.