ABSTRACT
This chapter attempts to provide an overview of the airlines' adaptation strategies being discussed and implemented in the developing and emerging markets. In general, emerging markets tend to have higher growth rates for their economies than developed regions, but emerging markets can also have higher risks and greater volatilities. The variation with respect to the state of the economy, economic growth, risk, and volatility is enormous. The chapter provides examples of adaptation strategies in Africa, representing a developing region and Asia, representing an emerging region. In emerging markets, such as those in Asia, the variation in government policies has been much greater, more conducive to low-cost carrier (LCC) entry in places such as the Philippines and Malaysia and less conducive in places such as China and Japan. The benefits of disruptive innovations could easily be brought about in Africa through changes in government policies on liberalization of market entry, ownership control rules, consolidation, taxation, and the rapid development of infrastructure.
