Moreover, the industry is structured so that airlines often act as tax collectors. Airline fuel is untaxed because of a series of treaties existing between countries. Ticket prices include a number of fees, taxes and surcharges beyond the control of airlines. Airlines are also responsible for enforcing government regulations. If airlines carry passengers without proper documentation on an international flight, they are responsible for returning them back to the original country.
Increasingly since 1978, US airlines have been reincorporated and spun off by newly created and internally led management companies, and thus becoming nothing more than operating units and subsidiaries with limited financially decisive control. Among some of these holding companies and parent companies which are relatively well known, are the UAL Corporation, along with the AMR Corporation, among a long list of airline holding companies sometime recognized worldwide. Less recognized are the private equity firms which often seize managerial, financial, and board of directors control of distressed airline companies by temporarily investing large sums of capital in air carriers, to rescheme an airlines assets into a profitable organization or liquidating an air carrier of their profitable and worthwhile routes and business operations.
Drop-dead gorgeous Fiji is a filmmaker’s dream. Spy its Mamanuca island chain in Cast Away and Survivor; ogle its Yasawa archipelago in the 1980 version of Blue Lagoon. A dizzying amount of natural beauty — from mountains and mangroves to rivers and reefs — swathes Fiji’s 333 islands, and awe-inspiring wildlife (whales, sea turtles, dolphins, parrots) is the icing on the cake. For scenery with a side of luxury and exclusivity, reserve a bure (villa) at one of Fiji’s numerous private-island resorts.
The delicate Great Barrier Reef is the earth’s most extensive coral-reef system, supporting more than 1,600 species of fish, along with whales, rays, octopuses, dolphins and more. Nestled in the heart of this world wonder are the 74 Whitsunday Islands, all but four of which are protected national parklands. Bask in luxury at a high-end resort like Hamilton Island, and book a seaplane or helicopter flight to admire sights like Heart Reef and the swirling silica sands of Whitehaven Beach’s Hill Inlet.
On Syros, capital of the Cyclades, you won’t find sugar-cube villages and whitewashed lanes. The colourful 19th-century city of Ermoupoli is built on twin peaks – one Orthodox, the other Catholic, the heritage of a long Venetian occupation. There’s still a strong Italian flavour in Ermoupoli’s marble piazzas, princely mansions, and miniature replica of La Scala, the showpiece of a year-round cultural scene. Syros hosts festivals of animation, dance, digital art, film, classical music, jazz and rembetiko, the Greek blues popularised by local musician Markos Vamvakaris. A few rembetiko joints have survived in the upper town, Ano Syra.
Major airlines dominated their routes through aggressive pricing and additional capacity offerings, often swamping new start-ups. In the place of high barriers to entry imposed by regulation, the major airlines implemented an equally high barrier called loss leader pricing. In this strategy an already established and dominant airline stomps out its competition by lowering airfares on specific routes, below the cost of operating on it, choking out any chance a start-up airline may have. The industry side effect is an overall drop in revenue and service quality. Since deregulation in 1978 the average domestic ticket price has dropped by 40%. So has airline employee pay. By incurring massive losses, the airlines of the USA now rely upon a scourge of cyclical Chapter 11 bankruptcy proceedings to continue doing business. America West Airlines (which has since merged with US Airways) remained a significant survivor from this new entrant era, as dozens, even hundreds, have gone under.