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Submitted By MERTY
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seats available the cost will increase. Externalities

There are quite a few negative externalities in the airline industry. A major one is the noise pollution by major airports. People that live near the airports constantly hear airplanes departing and arriving. This has been linked to heart disease, breathing difficulties and cancer along with other health issues. The airplanes emission is composed of about 70% CO2. CO2 contributes greatly to the greenhouse effect which is the cause for global warming. There are a few positive externalities along with this industry. Hotels near an airport stay busy due to the amount of travelers needing a place to stay.Wage Inequality

Wage inequality is common in the airline industry since there is a big variety of jobs available. In order to address this topic, many states have a living wage ordinance which they use to try to control wage inequality. For jobs involving customer service, you will not earn anywhere near some other positions but then again you do not even need experience. Flight attendants need to be trained in the main city where the headquarters are to the airline they are working for. Some might also need to learn foreign languages. Pilots on the other hand are required to take many hours of training and get a few different types of licenses as well as getting certified. The only way to earn a higher then average income in the airline industry is to have specialized training and experience. An airline pilot makes an average of $113,024 annually. A flight attendant makes an average of only $53,894 annually. Monetary and Fiscal Policies

There are many issues in the airline industry regarding government policies. U.S. airlines informed president Bush of the problems that a $1.5 billion proposal in aviation security costs would have on jobs in the airline industry. After the attacks on September 11th occurred,

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