The history of the aviation industry has been one of continuing adjustment to intense competition, pressure to achieve higher passenger numbers, and the need to monitor and control costs. Turbulence created by government regulations and constraints, and the failing health of the economies of different countries led to one of the most difficult trading periods ever experienced by the airline industry in the late 1990s. In the 2000s conditions became very much worse due to 9/11, the war in the Middle East, and the SARS outbreak in Canada and the Far East.

This is not to say that the industry has become complacent. On the contrary, a number of airlines have invested heavily in new technology and have continued to develop the quality of the product. In fact it could be argued that the airline industry has shown greater initiative and enthusiasm for improvement than any other sector of the transport industry. As the primary means of long haul and overseas travel is by air, the improvement in the provision of lower prices for air travel has caused a direct impact on the patterns of international tourism. These lower prices are being generated through major cost-cutting exercises which can mean the airline divesting itself of peripheral businesses, such as in-house catering, so as to be able to reduce prices and concentrate on the core business. This enables the airline to gain a stronger competitive advantage as prices are reduced through the use of non-Unionised, lower-cost labour, and the ability...