ABSTRACT
This chapter describes the evolution of air transport industry, including airlines and airports. Since the US Airline Deregulation Act of 1978, the US airline industry has been characterized by volatility. Europe's dominance in international air transportation is mainly a result of its historical ties to former colonial countries and its relatively small geographical area. While the North American market contains the highest number of commercial aircraft, it also contains a relatively high percentage of older aircraft. The US Airline Deregulation Act of 1978 dramatically changed the global financial condition of the airline industry as other countries began to follow suit and deregulate their own industries. In the early 1980s, shortly after US deregulation, the airline industry suffered a minor crisis as the economy slowed and competition soared. The post-deregulation airline profitability cycle continued into the twenty-first century, with the global industry experiencing its worst downturn in the history of commercial aviation.
