MORE THAN 100 YEARS OF ESTABLISHMENT AND DEVELOPMENT OF THE AVIATION INDUSTRY

The development history of more than a century is full of interesting milestones, since the first airplane was successfully tested in 1903 until now, the aviation industry has had unbelievable changes in aviation technology. both service.

Before 1914: The early period
The aviation industry emerged in the early 1900s, when aircraft designers in several countries succeeded in testing the first flights. On December 17, 1903, Orville and Wibur Wright successfully invented the first powered airplane after four years of research. The first flight lasted only 12 seconds, with an altitude of 37m at Kitty Hawk, North Carolina.

Period from 1914-1918: Aviation industry during World War I.
When World War I occurred, aviation technology research mainly focused on meeting the war’s needs for aircraft use. During this period, aircraft prices increased very rapidly because of high demand from the government. The highlight of the aviation industry at that time was the development and improvement of technology and aircraft engines. The generation of aircraft is increasingly expanding in size and has reached 130 miles per hour, twice as fast as the previous generation of aircraft. At the end of World War I, aircraft supplies remained surplus while government demand disappeared. Airplane prices dropped dramatically. Many aircraft manufacturing enterprises had to declare bankruptcy. The aviation industry fell into recession.

During this period, railway investment was focused and had a travel speed equal to that of airplanes. Therefore, the demand for transporting passengers and goods by air has not yet developed.

Period from 1918 to 1963: The era of Airmail (parcels sent by plane)

In 1918, the air mail transport service was officially born. The US military has transferred responsibility for sending parcels by plane to the US Post Office. The first mail was sent between Collage Park, Maruland and Chicago. Revenue from Airmail service is the foundation to continue building and developing the aviation industry in the coming years.

Also during this period, the first jet aircraft was born to serve long-distance flights. The first jet aircraft was produced for military purposes in Germany. But in later years it was used for commercial purposes. British Overseas Airway Corporation – an airline established by the British government – operated the route between London and Johnnesburg in 1952. Six years later, the Boeing 707 was born and began to be used for transportation services. transatlantic. This is also a milestone opening a new era of the aviation industry.

Period 1964-1973: The aviation industry developed
During this period, the aviation industry began to develop strongly. Aviation technology has also been improved to produce aircraft to transport people and goods. The number of passengers and air cargo increased sharply and continuously, 2.7 times higher than the previous period. The industry’s average growth rate reaches 10% per year.

Catching up with the industry’s rising trend, in 1971, Federal Express Corp (Fedex) invented the Door-to-Door air freight service. With a commitment to ensuring goods are shipped on time and delivered to customers.

Period 1973-1993: Oil crisis and policy changes
During this period, the aviation industry experienced two important events, the oil crisis and the abolition of binding regulations from the government, causing the aviation industry to become more competitive.

The 1975 oil crisis caused input costs of the aviation industry to increase sharply. With raw material costs accounting for 40-60% of input costs, rising oil prices cause air transport businesses to reduce profits. In addition, developed countries abolished binding regulations for entering the industry, leading to increasingly fierce competition in the industry. Industry profits fell sharply. However, this was also a period that witnessed spectacular growth in the number of passengers and the number of airports in the world.

Period 1994-2002: The development of the low-cost airline model (Low-Cost Carriers)
In the 1990s, the world entered a period of globalization, redefining the business model of the aviation industry. World manufacturing businesses are starting to move factories to countries with low labor costs to cut costs. At the same time, establishing subsidiaries and distribution centers to expand scale in other regions of the world. E-commerce also began to develop during this period.
At this time, the aviation industry has changed, businesses are constantly expanding their fleets, improving facilities to meet the increasingly demanding needs of customers and increase their competitive position. The “low cost airline” model – Low Cost Carrier (LCC) began to develop. This model provides flight services to customers at low prices, putting pressure on traditional airline businesses to reduce ticket prices. The birth of LCC has stimulated people’s need to use flight services more. The number of passengers increased by about 50%, from 1.3 billion in 1994 to 2 billion in 2000. The load factor also increased from 66% to 73% in 2000.
However, on September 11, 2001, the terrorist attacks in the US caused the aviation industry to fall into recession. Four passenger airliners operated by two major US airlines, United Airlines and American Airlines, taking off from a Northeastern US airport to California were hijacked by 19 AI-terrorists. Qaida. Two of the planes crashed into the North and South towers of the World Trade Center complex in New York City. The aviation industry suffered a severe recession, the number of passengers traveling by air decreased by 19.8% in 2001.

Period 2003-present: Recovery and growth
After the 2001 recession, the world aviation industry recovered and grew again. The number of passengers and air cargo output have average growth rates of 6.7%/year and 3.5%/year, respectively, in the period 2003-2017. It should be noted that during this period, the aviation industry experienced three major recessions:

In July 2003, the SARS epidemic broke out, starting in Hong Kong, then spreading throughout Asia and around the world. Many countries have banned people from traveling to other countries to limit the spread of the disease. The number of passengers during this period did not grow compared to previous years.

Global financial crisis 2008-2009: financial crisis broke out in the US. And spread globally. The root cause of this financial earthquake stems from the credit and real estate crisis in the US. Due to economic recession, the number of passengers traveling by air in the world in 2009 decreased by 10% compared to 2008.

In December 2019, the epicenter of the Covic-19 epidemic was discovered in Wuhan city, China. Then it quickly spread worldwide, all countries had to apply movement restriction measures. The epidemic affects economies around the world. Flights are also limited. The epidemic has lasted for more than 2 years, and has now gradually been overcome. The aviation industry is gradually recovering.

The journey of a century of development of an industry and a product to become as modern as it is today all originated from an idea, an aspiration, and a lot of experimentation.

The dream of flying is a human dream, we experimented and we succeeded.

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