Uneasy jets

Financial Management, Mar 2003 by Hayward, Cathy

After a disastrous last quarter of 2001, the industry as a whole has started to recover. But there has been a shift of power away from the traditional, full-price airlines to the budget operators. That trend will continue as long as the terrorist threat and economic downturn persist, according to Reynolds.

He predicts that there will be further consolidation in the industry and more airlines leaving the market because of overcapacity. But other experts are more positive. Aviation is 100 years old this year; Bisignani says. "It has survived war, depression, recession, regulation and deregulation. Now, as with those previous trials, air transport will learn from its experiences and make a comeback."