ABSTRACT
Airlines worldwide have been adapting, although at different paces and different levels of intensity, to the forces and their convergence and intersection described earlier. This chapter outlines the adaptation strategies by airlines in four broad areas: consolidation, network alignment, customer management and distribution management. It describes consolidation, in various forms, improves the bottom line, to be able to compete more effectively in the coming years, and to smooth out the financial performance during cycles. Network alignment, is to remain competitive, be poised to access strategic global markets, and achieves operational excellence. Proactive customer management in the information-led and increasingly connected world to win and maintain loyalty and the distribution space where airlines face challenges, not just on the decision of simply direct vs. indirect, but also on whether or not to partner with existing and new distributors. The chapter also provides examples which show a variety of adaptation strategies of a broad spectrum of airlines worldwide.
