Driver of Globalisation
Aviation is nowadays a crucial driver of globalisation. Mobility needs of mankind are – despite economic crises or increasing ecological concerns – unchanged; a need that in many cases can only be satisfied by air traffic. Strongly regulated in the past, the aviation industry right now is undergoing a rapid liberalisation process. Market rules have been newly defined, and the emergence of new business models – such as low-cost airlines a decade ago – has put slow and inflexible players out of business.
One characteristic element of this industry is the simultaneous appearance of quite different market types, with significant impact on the economic success of the respective sub-sectors. Airlines often complain about their “sandwich position” between airports as local monopolists on one side, and the oligopoly of aircraft OEMs on the other side. Furthermore, the industry has suffered for decades from structural overcapacities, i.e., from the subsequent decline in yields.
However, the most innovative and best-managed carriers still clearly outperform the rest – be it traditional hub carriers, low-cost carriers, or the new challengers from emerging markets in Asia and the Middle East. The success formula: forceful pursuit of a sound vision, combined with intelligent steering of resources and efficient operations. .
