The Airline Industry is currently faced with its longest and deepest crisis to date: many of them are losing hundred of millions of US dollars, several have collapsed entirely, whilst others have had to be rescued by their governments. This crisis has been precipitated by external shocks such as the attack on the Twin Towers in New York, the invasion of Iraq and the SARs epidemic. However, in addition to this, the effect of these events has been exacerbated by dynamic and potentially destabilising internal developments.
This book provides a comprehensive analysis of the crucial events and key developments which have shaped, and will continue to impact on the dynamics of, the airline industry. Special attention is paid to the key challenges faced by the airlines such as continued liberalisation and 'open skies', the impacts of global alliances, new low-cost and no-frills carriers, on-line selling and distribution, privatization and the impact of disasters. Rigas Doganis examines the future prospectsfor the industry and assesses alternative policies which could help the sector adapt to the changing market place.