ABSTRACT
This chapter discusses the need for some dramatic changes, mostly for conventional airlines, if they are to regain the passengers they have lost and to retain the passengers they still have. The strategy will provide improved operating economics, wide payload range and attractive interiors for passengers. Passengers are fed up with conventional airlines which fail to deliver value. By trying to be all things to all passengers, many conventional airlines are satisfying only a few passengers. The newer generation of successful unconventional airlines provides consistent value and a different travel experience. In Europe not only the conventional airlines but also the charter airlines are fighting back to protect their market share. The business model of separate independent subsidiaries remains viable, and many successful airlines will redesign their operations into highly specialized subsidiaries whose sole purpose is to serve a specific customer segment. Conventional airlines must give up the notion of expanding fleets to carry everyone to everywhere.
