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INTRODUCTION The Airline industry is one of the world's largest industries generating over $300 billion in revenues in 2001 alone and additionally has the second highest industrial growth rate, after the computer industry, with typical growth rates of 3-5% per annum over the last 20 years (Humphreys, 2003; BA Fact book, 2002). For the purpose of this assignment, freight/cargo airline activities will not be considered as freight travel consists of only 2 % of total airline activity (see figure 3.1 and appendix 1) (BA Fact book, 2002, ICAO, 2003). Furthermore, due to the nature of the airline industry and the Asian market being a lot smaller and internally focused, we will concentrate on the North American and European markets which between them, account for 65% of the market (see figure 3.1 and appendix 1) (ICAO, 2003). Section 1:The main forces shaping the airline sector's global business environment. The past two years...

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