Given the increasing volatility in the economic performance of airlines, partially reflecting the dynamics of demand for air transport and the fixed costs associated with the industry, all stakeholders need to consider appropriate strategies for better managing the risks. Many risks were identified in the literature previously, some even decades ago, however most have yet to be satisfactorily addressed. Urgency is growing. Removal of the remaining barriers to competition at all levels, congestion management, open skies policies across continents, computer-centric air traffic management systems and increased research and development into the processes and technology needed to reduce environmental externalities remain among the top challenges for the next decade.
Bibliographical noteFunding Information:
The authors would like to sincerely thank the organizers and participants of the Hamburg Aviation Conference of February 2010 for fruitful discussions that led to the development of this paper. Nicole would also like to thank the Recanati Foundation for partial support of this work.
- Airline competition
- Airport commercialization
- Aviation regulation
- Aviation value chain
- Strategies towards risk