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Robinson School of Accountancy Associate Professor Siva
Nathan points to other difficulties: “The big airlines must
move into the international market in a big way. But moving
into international markets is much more complex than moving
into new domestic markets.” He pointed to governmental
approvals as just one of the many issues involved.
Nathan also noted that the cost of fuel presents a huge
challenge to all air carriers. Then there is the ever-looming
possibility that the airline unions will want “give-backs,” after
relinquishing so much in salary and benefits. And, as far as
competition is concerned, Nathan says that some foreign
airlines have ordered the most modern aircraft available, such as
the AirBus 380. U.S. carriers have yet to do that but, according
to Nathan, will have to add new, sophisticated equipment to
effectively compete for the international traveler.
In the pages that follow, State of Business talks with some of
the airline industry’s most high-profile executives and learns
how serving the customer and dividing the marketplace
may be the best way, if not the only way, for all carriers to
prosper in the future.
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