The Asian economic crisis and the aviation industry: and impacts and response strategies

Most airlines across Asia are struggling to cope with an unprecedented econ omic crisis which they have very little control over, and the survival of s ome remains in doubt. The continuing uncertainty generated by the crisis ha s accelerated the process of change in the aviation industry and has highli ghted the need for adaptability, and its effects have been deeper and longe r lasting than previously anticipated. After a year-long slump in the Asian travel market, airlines are now considering a range of options and rehabil itation programmes including a series of cost-cutting measures. There appea rs to be a trend towards the extension and consolidation of strategic allia nces, structural and operational reorganization, and the application of new technologies. The success of these measures will become apparent over time , but action is necessary to minimize the adverse consequences of the crisi s which has dominated the region since 1997.