Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides survey of the airline industry from a managerial perspective. It examines the history, structure, and functions of the airline industry from a management perspective with the goal of providing students and junior managers with a broad overview of airline operations and management. The book emphasizes the role of government economic regulation, ownership, and subsidies in the development of the early industry. It focuses on the forces that drive airline demand and supply and the rapid growth in airline passenger and cargo transportation which is now most evident in Asia. The book also focuses on the largest categories of airline expense and management’s options for cost control in the face of increasing competition. It also explores the complex and frequently misunderstood process of airline pricing.