ABSTRACT
The size and scope of commercial air transport in the Asia Pacific has shifted significantly in the past few decades. The current state of commercial aviation in the region needs to be set properly and carefully within the context of global trends. Not surprisingly, the financial crisis at the end of the 2000s had a profound effect on airline operating parameters worldwide. The year 2009 saw a sharp decrease in both cargo and passenger traffic: oil prices stole profitability from many airlines globally, and this added to the instability in financial markets. Combined, these factors together revealed and, in some cases, amplified thin operating margins and unsustainable business strategies. Many airlines faced substantial revisions to cost structures, demand and business models.
