Abstract
Through a sequence of examinations, the research identifies that there is a difference in the liberalisation process of different regions’ air transport markets. This has impacted on the configuration of strategic airlines alliances. Deregulation and strategic alliances that have contributed to the air transport market globalisation to benefit air travellers’ welfare, carriers and economic development of each country should be pursued simultaneously in reducing the current existing barriers to entry into the regulated air transport market. However, increased complexity in the international business environments stem from a number of sources that pose long term issues. This challenges both globalisation process and approaches. The future air transport market consolidation or fragmentation will therefore have implications for the airline operations, as well as, State of governance. As the cold war is still going on, the impact of Sep. 11th is difficult to discern at this stage. After Sep 11th, some economists indicated that the world had indeed changed, and in significant ways. The airline industry’s case shows that it overall has sustained a massive impact from the September 11th Events. On that day, both American Airlines (AA) and United Airlines (UA) aircrafts were hijacked and used in the terrorist attacks. That caused a dramatic decrease in passenger numbers and flight frequency of airline services. The immediate problems posed to the airline companies after the Sep 11th events in general, include the higher costs associated with new airline security directives, the companies’ ability to raise additional financing, the cost of such financing and the price and availability of jet fuel.
Original language | English |
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Pages (from-to) | 455-463 |
Number of pages | 9 |
Journal | Journal of American Academy of Business |
Volume | 5 |
Issue number | 1/2 |
Publication status | Published - Sept 2004 |
Externally published | Yes |