sector Overview:

The airline industry has been through a lot of turbulence over the past few years. In the wake of 9/11 passengers stopped flying, most airlines started making huge losses and several went into Chapter 11 protection. Especially in the US, the airline sector became a byword for poor financial returns. As price discounting and increased security helped to build passenger numbers, a new range of leaders emerged in the sector. The old guard of primarily national flag carriers such as BA, Air France and American were quickly eclipsed in terms of financial performance by a raft of new low-cost airlines that soon came to dominate short-haul routes. SouthWest Airlines in the US, EasyJet and RyanAir in Europe and AirAsia in Malaysia are just some of the stars of the low-cost flight fraternity that have changed the way many of us now fly. Through opening up air travel to previously under-served consumers, millions now pay rock-bottom prices to get basic service as they are often flown to small, remote regional airports. It may not be the same service as you would get from the established airlines on the traditional routes, but with discounts of up to 90% on scheduled prices nobody has been complaining. With RyanAir consistently worth more than BA, low-cost airlines are now firmly established as part of the airline sector. New ones come and go but their presence is now nearly global and dominates much of the short haul routes.