ABSTRACT
This chapter presents some of longer-term opportunities that are divided into four areas: globalization and evolving demographic patterns; mature markets; evolving technologies; and reshaping marketing and operating practices. It provides a glimpse of the opportunities available to airlines worldwide. Rapidly changing demographic and socio-economic patterns present significant implications for demand for air transportation services. Within domestic markets, for instance, product could resemble services offered by different types of low-fare airlines within United States— ranging from no frills to low-frills. Although Japan's market is mature, operating costs are high, and slots are limited at major airports, there are nevertheless abundant opportunities. Liberalization provided an opportunity for new entry and two airlines— Air Do and Skymark— did start service at lower fares. Evolving aircraft technology provides very broad spectrum of opportunities for airlines. Emerging aircraft technology presents new opportunities for some airlines to strengthen their market position and for others to capitalize on changing demographic and socio-economic patterns.
