• The open sky in Asean as the result of AFTA means greater competition. This will put pressure for airline to reduce price and increase value for customers.
• The expected downturn in global economy will see many companies reducing corporate travels. Many will opt for the backend cheaper seats.
• The manufacturing sector is embracing itself with lower capacity. Thus will translate into low volume of cargo movement.
• The credit crunch will affect airlines that have large borrowings. Increasing interest rates and scarcity of funds will put pressure in the purchasing of newer and cost efficient aircrafts.
The one with strong basics will survive the challenge.
• Lean organization
• Low cost
• Excellent customer service
• Efficent utilization of aircraft
• Greater network
End/ Zahir
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