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

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  • Muhammad A. Sadi
  • Joan C. Henderson

Abstract

Most airlines across Asia are struggling to cope with an unprecedented economic crisis which they have very little control over, and the survival of some remains in doubt. The continuing uncertainty generated by the crisis has accelerated the process of change in the aviation industry and has highlighted the need for adaptability, and its effects have been deeper and longer lasting than previously anticipated. After a year-long slump in the Asian travel market, airlines are now considering a range of options and rehabilitation programmes including a series of cost-cutting measures. There appears to be a trend towards the extension and consolidation of strategic alliances, 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 crisis which has dominated the region since 1997.

Suggested Citation

  • Muhammad A. Sadi & Joan C. Henderson, 2000. "The Asian economic crisis and the aviation industry: Impacts and response strategies," Transport Reviews, Taylor & Francis Journals, vol. 20(3), pages 347-367, January.
    • Handle: RePEc:taf:transr:v:20:y:2000:i:3:p:347-367
    DOI: 10.1080/014416400412841
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    Cited by:

    1. Tsui, Wai Hong Kan & Fung, Michael Ka Yiu, 2016. "Analysing passenger network changes: The case of Hong Kong," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 1-11.
    2. Dube, Kaitano & Nhamo, Godwell & Chikodzi, David, 2021. "COVID-19 pandemic and prospects for recovery of the global aviation industry," Journal of Air Transport Management, Elsevier, vol. 92(C).
    3. Carol C. Huang & Chris C. Hsu & Emilio Collar, 2021. "An Evaluation of the Operational Performance and Profitability of the U.S. Airlines," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 73-85, December.
    4. Laura DIACONU (MAXIM), 2021. "The behaviour of airlines’ passengers in the context of COVID-19 pandemic," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13(2), pages 230-242, July.
    5. Bowen, John T., 2016. "“Now everyone can fly†? Scheduled airline services to secondary cities in Southeast Asia," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 94-104.
    6. Yu, Ming-Miin & Chen, Li-Hsueh, 2023. "Productivity change of airlines: A global total factor productivity index with network structure," Journal of Air Transport Management, Elsevier, vol. 109(C).
    7. Wanke, Peter & Pestana Barros, Carlos & Chen, Zhongfei, 2015. "An analysis of Asian airlines efficiency with two-stage TOPSIS and MCMC generalized linear mixed models," International Journal of Production Economics, Elsevier, vol. 169(C), pages 110-126.

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