Matching global competition

Abstract

The sluggish airline industry in America and Europe has pushed major international carriers to offer bargain fares and concessions in order to survive. Though Asian airlines are performing well and are profitable, the global competition has increased pressures considerably and led to reforms in the regional market. After reviewing the drivers that are causing change and affecting airline performance, the discussions shifts to the emerging strategic alliances between carriers. The introduction of frequent-flyer programmes in Asia serves as an illustration of how regional airlines are attempting to cope with the challenge of global competition.