Airline Industry Remains Restricted Despite Being Central to Globalization

April 30, 2009
Airport security a major concern; innovative technologies drive the market

MOUNTAIN VIEW, Calif. , April 30 /PRNewswire/ -- Air travel remains an extensive and growing industry that facilitates tourism, international investment, world trade and economic growth. Central to the globalization occurring in other industries, air travel remains a very restricted industry. Business travel has grown over the last decade as companies become increasingly international in their investments, supply and production chains, and customers. The rapid growth in international direct investment has also contributed to a rise in business travel.

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New analysis from Frost & Sullivan (, Merging Air Transport Market Dynamics, finds that airlines earn revenue by transporting cargo, selling frequent flyer miles to other companies, fuel surcharges, baggage fees, and up-selling in-flight services. The largest proportion of the industries generated revenue derives from regular and business passengers. This research covers market segments by the geographic regions of Europe , Latin America , Russia , North America , Africa , Middle East and the Asia Pacific .

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, send an e-mail to David Escalante , Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

"The airline industry is the most global business, while being the most restricted industry," says Frost & Sullivan Industry Analyst Nathan K. Smith . "Some regulation of the industry is likely and essential if governments continue restricting the global airline industry from the freedom allowed to other industries."

Customers have fewer issues about their flag carrier. Instead, they are more concerned about the service quality and value provided.

Airline profitability is closely tied to economic growth and trade. The economic slump in the United States and the weaker global economy has led to low passenger demand and cargo growth. Labor, one of the airline industry's biggest adversaries, is putting pressure on the industry for unacceptably high wages and benefits. Further, the U.S. government has and continues to react too slowly to resolving the air traffic congestion and security issues that confront it.

To ensure airport, airline and passenger safety, governments monitor threats and seek continual improvements in screening, surveillance, perimeter and access control.

"Airport security is a major concern for airlines, airports and governments," concludes Smith. "Innovative technologies and solutions are creating effective options for increased security and cost efficiency, thereby driving the market."

Merging Air Transport Market Dynamics is part of the Aerospace Growth Partnership Service program, which also includes research in the following markets: Latin American Airport Network Analysis Service, Chinese Airport Screening Markets, Chinese Airport Airside Markets - Capacity and Growth Service, The Indian Airports Infrastructure Modernization and Development Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Merging Air Transport Market Dynamics


Contact: David Escalante Corporate Communications P: 210.477.8427 F: 210.348.1003 E: [email protected]

SOURCE Frost & Sullivan