Chapter 2

The Global Airline Industry


Airline operations differ from one part of the world to the other. First World, Second World, and Third World carriers will be discussed in order to understand how differences in management philosophy, cultural issues, and governmental influence affect carriers of different nationalities. The current business environment will then be examined as will the unpredictability of a global airline’s operating environment. However, because the basic administrative structure within which all international air services operate has remained virtually unchanged since 1944, it will be presented first.

The Exchange of Air Rights Between Nations

Bilateral Agreements

In 1944, during the closing stages of World ...

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